Faculty, staff and the University of California will contribute more to the UC Retirement Plan (UCRP) beginning July 1, 2012.
Rates for faculty and staff will rise to 5 percent of pay, up from roughly 3.5 percent. The University will pay 10 percent of pay, up from 7 percent.
Faculty and staff will see the increased contributions reflected in their regular paychecks for July earnings, paid between July 18 and Aug. 8, 2012, depending on payroll cycle. All employee contributions are pre-tax.
The amount will increase again in July 2013, with employees paying 6.5 percent and UC paying 12 percent. For the first time in many years, the combined contributions will cover the annual increase in UCRP liability for active members (over 17 percent of pay on average).
In 2010, the UC Board of Regents took a number of actions to address the pension funding shortfall, including the increases to contribution rates. Those actions also included establishing a new tier of benefits for employees hired beginning July 1, 2013, and approving internal borrowing options to better fund the pension plan.
The new contribution rates affect only active members of the UCRP and are subject to collective bargaining for represented employees.
Employees can learn more about UCRP and Regents actions to reduce the plan’s unfunded liability at the Future of UC Retirement Plan website.