FOR FACULTY AND STAFF ELIGIBLE ON OR AFTER JULY 1, 2016

A Complete
Guide to YourUC Retirement Benefits

RETIREMENT PLAN SUMMARIESListed below are telephone numbers and website andcorrespondence addresses for some of the resources UC
employees routinely use.

UC EMPLOYEE WEBSITE
ucnet.universityofcalifornia.edu

RETIREMENT ADMINISTRATION SERVICE CENTER (RASC)INVESTMENT OVERSIGHTUC Office of Chief Investment Officer
Chief Investment Officer’s website: ucop.edu/investment-office
Written correspondence should be sent to:
Office of the Chief Investment Officer of The Regents
University of California
Office of the President
1111 Franklin Street
Oakland, CA 94607-9828

rasc.universityofcalifornia.edu
Secure message (email): Sign in to your UCRAYS account at
retirementatyourservice.ucop.edu and select “Messages”
Survivor and beneficiary support: 1-888-825-6833(includes after-hours voicemail option)
RASC main line: 1-800-888-8267, Monday–Friday,
7 a.m. to 4:30 p.m. (PT)International callers: 1-510-987-0200
Mail: UC Retirement Administration Service Center,
P.O. Box 24570, Oakland, CA 94623-1570
Fax: 1-800-792-5178

UC RETIREMENT CHOICE AND
RETIREMENT SAVINGS PROGRAM

BENEFITS FROM OTHER SOURCES
For information on plans and services that may have an impact
on your retirement benefits, such as Social Security, CalPERS orother retirement plans and agencies, contact the appropriate
agency.
Social Security Administration: 800-772-1213
Social Security website: socialsecurity.gov
CalPERS: 888-225-7377
CalPERS website: calpers.ca.gov
CalSTRS: 800-228-5453
CalSTRS website: calstrs.com

myUCretirement.com
866-682-7787 (Fidelity Retirement Services)
IF YOU MOVELOCAL BENEFITS OFFICESUC Berkeley: 510-664-9000, option 3
UC Davis: 530-752-1774
UC Davis Health: 916-734-8099
UC Irvine: 949-824-0500
UC Irvine Health: 949-824-0500
UCLA: 310-794-0830
UCLA Health: 310-794-0500
UC Merced: 209-355-7178
UC Riverside: 951-827-4766
UC San Diego: 858-534-2816
UC San Diego Health: 619-543-3200
UCSF: 415-476-1400
UCSF Health: 415-353-4545
UC Santa Barbara: 805-893-2489
UC Santa Cruz: 831-459-2013
Agriculture & Natural Resources: 530-752-1774
ASUCLA: 310-825-7055
UC College of the Law, San Francisco (formerly Hastings):
415-565-4703
UC Office of the President: 855-982-7284
Lawrence Berkeley National Lab: 510-486-6403

It is your responsibility to notify the Plan Administrator ofyour new mailing address. UC uses the address on file as theaddress of record for you and your beneficiaries.
If you are an active UC employee, you can change your addressby signing in to UCPath at ucpath.universityofcalifornia.edu
and/or to UCRAYS at retirementatyourservice.ucop.edu.
To make the change by phone, active employees can call the
UCPath Center at 855-982-7284, and retirees and former
employees can call the UC Retirement Administration Service
Center at 800-888-8267.
You can update your address with Fidelity Retirement Services
by calling 866-682-7787 or by logging into netbenefits.com,
your Fidelity website.

Introduction

The University of California’s comprehensive benefits are among theways UC recognizes its employees for their contributions, and are an
important part of your compensation.
It’s important to understand the pivotal role you have in shaping yourfinancial future. To make the most of your retirement and savings
benefits, you should read this booklet carefully and keep it with yourimportant papers for later reference. It contains summaries withcomprehensive information about the primary retirement benefit
options and voluntary retirement savings plans that make up the
University of California Retirement System (UCRS) as well as
information about health and welfare benefits currently available toeligible UC retirees.
The chart below illustrates the basic structure of UCRS. The
summaries in this booklet explain the plans’ provisions and thepolicies and rules that govern them. If a conflict exists between thesesummaries and the plan documents, the plan documents govern. The
Plan Administrator has the authority to interpret disputed provisions.
UNIVERSITY OF CALIFORNIA RETIREMENT SYSTEM (UCRS)
University of California
Retirement Plan (UCRP):
a defined benefit plan

Defined Contribution Plan(the DC Plan): a defined
contribution plan403(b) Plan(the 403(b) Plan): a defined
contribution plan457(b) Deferred Compensation
Plan (the 457(b) Plan): a deferredcompensation planA pension plan for Pension Choiceparticipants and existing and newly
eligible UCRP members

A retirement savings andinvestment plan for Savings
Choice participants, and for
Pension Choice participantseligible for the defined
contribution supplemental benefit

A retirement savings andinvestment plan for voluntary
employee pretax and Rothcontributions and rollovers, andemployer contributions for eligible
employees

A retirement savings andinvestment plan for voluntary
employee pretax and Rothcontributions and rollovers, andemployer contributions for eligible
employees

Also includes voluntary after-tax
contributions and rollovers,
employer contributions for eligible
employees and mandatory pretax
employee contributions for Safe
Harbor employees

Effective Nov. 1, 2016, also
includes employer and mandatory
employee pretax contributions
for eligible summer academic
appointees

Primary Retirement Benefit Options....................................................................................2403(b) Plan..........................................................................................................................................................................45

University of California Retirement Plan (Pension Choice)............3457(b) Deferred Compensation Plan.....................................................................................61

Defined Contribution Plan (including Savings Choiceand supplemental Pension Choice accounts)..............................................................29

Health and Welfare Benefits for Retirees.....................................................................73

1

Primary Retirement Benefit Options

Primary Retirement
Benefit Options
Your UC retirement benefits depend on a number of factors,
including whether you’re represented by a union, when you were
hired and whether you’ve been employed by UC in the past.
If you’re represented by a union, your retirement benefits aregoverned by your union’s contract with UC and may be different
than the benefits outlined here. For example, some bargaining
units currently participate in the UC Retirement Choice Programand some do not. Please refer to your collective bargaining
agreement (available at ucal.us/agreements) for details.

second choice window for Savings Choice participants opens
on Jan. 1 of the fifth anniversary of the calendar year in which
they made their initial election. See page 7 for details about thisopportunity.
See the Defined Contribution Plan summary on page 29
for details about Savings Choice, including UC’s and yourcontributions, distributions, vesting, the timing and rules forswitching from Savings Choice to Pension Choice, and more.
(You will not have an opportunity to switch prospectively
to Savings Choice from Pension Choice, as that window ofopportunity is only available under Savings Choice.)

UC RETIREMENT CHOICE PROGRAM
For most eligible UC employees hired, rehired or newly eligible forbenefits on or after July 1, 2016, UC offers two different primary
retirement benefit options: Pension Choice or Savings Choice.
Please note that some rehired employees will not be eligible forthis choice, including those who:
• Became members of UCRP prior to July 1, 1994,• Were rehired without a tier break in service (see definition on
page 22), or• Elected Pension Choice or Savings Choice, or were defaulted
into Pension Choice, during a prior period of UC employment.
PENSION CHOICE
This option includes a pension benefit under the UC Retirement
Plan (UCRP), providing a predictable level of lifetime retirement
income. Some faculty and staff may also be entitled to receivea supplemental benefit in a defined contribution account.
Enrollment in Pension Choice is irrevocable.
See the UCRP summary on page 3 for details about Pension
Choice, including eligibility, vesting, contributions from you andUC, retirement income, disability benefits, benefits for eligible
survivors and more.
If you are eligible for the defined contribution supplemental
benefit under Pension Choice, see the Defined Contribution Plansummary on page 29 for details, including UC’s and yourcontributions, distributions and more.
SAVINGS CHOICE
This option is a defined contribution plan, with mandatory
pretax contributions from you and contributions from UC. These
contributions and any investment earnings accumulate in a
tax-deferred retirement account. You select how to invest
contributions to your account from a menu of available funds
and you assume the investment risk.
Savings Choice participants have a window of opportunity toswitch prospectively from Savings Choice to Pension Choice,and become members of the UC Retirement Plan (UCRP). The
2

MAKING YOUR CHOICE
Enroll in Pension Choice or Savings Choice as soon as you’ve
decided on the option that is best for you. Your benefits areprospective from the date you enroll, so you can lose theopportunity to accumulate retirement benefits (including UC
contributions and service credit) by waiting.
Employees have up to 90 days from their retirement option
eligibility date (generally your hire date) to enroll. Your enrollment
window closes once you submit a choice. If you do notaffirmatively choose an option, you automatically will be enrolled
in Pension Choice at the end of the 90-day selection period.
RESOURCES
Retirement Benefits Decision Guide
Online: ucal.us/retirement
Retirement Decision Tool
Online: myUCretirement.com/choose
Personal Retirement Counseling
Online: fidelity.com/schedule/UC
Phone: 800-558-9182
Classes and webinars
Online: myUCretirement.com/classes
The Sooner the Better: Take advantage of the resources
above to help you make this important decision as soon as
possible. Here’s why it pays to enroll well before yourdeadline:• If you wait 90 days to enroll or default into Pension
Choice, you lose up to three months of UC Retirement
Plan service credit — delaying vesting and decreasing yourbenefits.
• If you wait until the deadline to enroll in Savings Choice,
you lose up to three months of service credit toward
retiree health benefits and you lose up to three monthsof UC and personal pretax contributions — reducing yourretirement savings contributions for the year.
So make your choice and start building your retirement
benefits as soon as you can.

• Hired on or after July 1, 2016, or• Rehired on or after July 1, 2016, after a break in service, or• Who became newly eligible for benefits on or after July 1, 2016

Introduction......................................................................................................................................................................5

Cost-of-Living Adjustments...................................................................................................................15

UCRP Membership................................................................................................................................................6
Collective Bargaining...........................................................................................................................................6
Social Security.................................................................................................................................................................6
Eligibility and Membership........................................................................................................................6
Second Choice Window for UCRP Membership.....................................................7
Vesting.........................................................................................................................................................................................7
Inactive Membership...........................................................................................................................................7
Reciprocity............................................................................................................................................................................7

Disability Benefits..................................................................................................................................................15
General Requirements......................................................................................................................................15
Disability Definitions...........................................................................................................................................15
Disability Date.................................................................................................................................................................16
Disability Income........................................................................................................................................................16
Maximum Disability Income....................................................................................................................16
Applying for Disability Benefits.........................................................................................................16
Length of the Disability Income Period................................................................................16
When Disability Income Stops.............................................................................................................16

Pensionable Earnings Maximums................................................................................................8
PEPRA Maximum........................................................................................................................................................8
Rehired, Newly Eligible and Former
CalPERS-Covered Employees.................................................................................................................8
Contributions..................................................................................................................................................................9
Funding the Plan..........................................................................................................................................................9
University Contributions...............................................................................................................................9
Member Contributions.....................................................................................................................................9Service Credit.................................................................................................................................................................9Service Credit Purchase...............................................................................................................................11
Refund of Accumulations...........................................................................................................................11
Retirement Benefits............................................................................................................................................12
If You Leave UC and Don’t Retire...................................................................................................12
Basic Retirement Income..............................................................................................................................12
Alternate Monthly Payment Options.......................................................................................12
Retirement Age Factors...................................................................................................................................13
Plan Maximum Benefit......................................................................................................................................14
Death Benefits..............................................................................................................................................................14
Payments to Beneficiaries...........................................................................................................................14
Preretirement Survivor Income..........................................................................................................14
Death While Eligible to Retire...............................................................................................................14

Reappointment After Retirement..............................................................................................17
Internal Revenue Code Provisions.............................................................................................17
Maximum Contribution and Benefit Limitations..................................................17
Minimum Distribution Incidental Benefit.........................................................................17
Required Minimum Distributions....................................................................................................18
Rollovers...................................................................................................................................................................................18
Taxes on Distributions.......................................................................................................................................18
Additional Information..................................................................................................................................19
Claims Procedures....................................................................................................................................................19
Plan Administration...............................................................................................................................................19
Plan Changes.....................................................................................................................................................................20
Designation of Beneficiary.........................................................................................................................20
Designation of Contingent Annuitant.....................................................................................20
Community Property...........................................................................................................................................20
Assignment of Benefits....................................................................................................................................21
Qualified Domestic Relations Orders (QDRO).........................................................21
Further Information...............................................................................................................................................21
Plan Definitions...........................................................................................................................................................22
Information for Members with Service Credit
from a Previous Period of Employment............................................................................26

3

University of California Retirement Plan (Pension Choice)

University of California Retirement Plan
(Pension Choice) Plan Summary
For eligible faculty and staff:

4

UCRP: Introduction

Introduction
The University of California Retirement Plan (UCRP or the Plan)
provides retirement benefits for eligible employees (and theireligible survivors and beneficiaries) of the University of California
and its affiliate, UC College of the Law, San Francisco (formerly
Hastings). UCRP also provides disability income and death
benefits.
UCRP is a tax-qualified governmental defined benefit plan.
Eligible employees who are enrolled in Pension Choice as theirprimary retirement benefit option become members of UCRP.
Benefits are determined by formulas that vary according to thetypes of benefits payable (for example, retirement, disability or
survivor benefits). The formulas take into account a member’ssalary, age, years of service credit and member class. The Plan isfunded by employer and employee contributions.
The provisions described here are for eligible UC employees whoare• Hired on or after July 1, 2016,• Rehired on or after July 1, 2016, after a break in service, or• Newly eligible for benefits on or after July 1, 2016.

Are you in a domestic partnership?
See page 23, or check out “Establishing a domestic
partnership” on UCnet (ucal.us/domesticpartnership),to determine whether you’ve established your partner’s
eligibility for UCRP survivor and death benefits.

5

UCRP: Membership

UCRP Membership
UCRP includes four member classes:• Members covered by Social Security• Members not covered by Social Security, other than Safety
members• Members with Tier Two benefits andhospital insurance (Part A). These taxes are deducted from themember’s gross wages each pay period.
Contact the Social Security Administration for more
information about Social Security eligibility and benefits,
including an estimate of future retirement benefits (seeinside front cover).

• Safety members
Active members in each of the first two member classes accrue
benefits in one of four tiers — the 1976 Tier, the 2013 Tier, theModified 2013 Tier and/or the 2016 Tier. Members who first
become eligible to participate in UCRP on or after July 1, 2016,
will accrue benefits in the 2016 Tier, unless they are represented
by a bargaining unit that does not participate in the UC
Retirement Choice Program. Members who began accruing
UCRP benefits before July 1, 2016, will continue accruing UCRP
benefits under their current tier until they have a break inservice. If a member returns to eligible UC employment on orafter July 1, 2016, following a tier break in service (see definition
on page 22) and again becomes a UCRP member, the member
will accrue additional service under the 2016 Tier.
This plan summary pertains primarily to members of the UCRP
2016 Tier.
As benefits and other provisions vary by member tier andmember class, UCRP members who accrue benefits in anothertier should refer to the following publications: UCRP 1976 Tier
Summary Plan Description and UCRP Summary Plan Description
for 2013 Tier Members. Safety Members should refer to theSummary Plan Description for Safety Members. These publications
are available at ucnet.universityofcalifornia.edu.

COLLECTIVE BARGAINING
The provisions of the Plan are subject to collective bargaining forrepresented employees. Terms and conditions of employment
for exclusively represented employees are spelled out in thedetailed contracts that the university and the unions havenegotiated. If you are in a bargaining unit, you can find thecontract that applies to you at ucal.us/agreements, or directlyfrom the union.

ELIGIBILITY AND MEMBERSHIP
You are eligible for Pension Choice (which includes UCRP
membership) if you:
• Are hired on or after July 1, 2016, into an eligible faculty or
career staff appointment (at least 50 percent time on a fixedor variable basis for one year or longer)• Are rehired on or after July 1, 2016, into an eligible faculty or
career staff appointment after a tier break in UC service, butwere not a previous UCRP member prior to July 1, 1994 (seedefinition of tier break in UC service on page 22)• Are hired in an ineligible position and become eligible forbenefits on or after July 1, 2016, either by completing anhours requirement or by obtaining an eligible faculty or career
staff appointment• Employees who are hired on or after July 1, 2016, in Safe
Harbor positions may become eligible for a choice of primary
retirement benefits after working 750 hours or 1,000 hours
in a rolling, continuous 12-month period, depending upon
job classification. (Employees in a Non-Senate Instructional
Unit qualify for a choice of primary retirement options
after working 750 hours in an eligible position.) Eligibility iseffective no later than the first of the month following themonth in which the employee reaches 1,000 hours (or 750
hours, if applicable).
EXCEPTIONS:
A University employee is not eligible for UCRP membership if
the employee:• Is at the University primarily to obtain education or training• Receives pay under a special compensation plan but receives
no covered compensation (see “Plan Definitions” on page 22)• Is in a per diem, floater or casual restricted appointment

SOCIAL SECURITY
Most UCRP members pay Social Security taxes.1 The Social
Security tax rate is currently 7.65 percent. Of this, the member
pays 6.2 percent on earnings up to the Social Security wage
base ($168,600 in 2024) for Old Age, Survivors and Disability
Insurance (OASDI) and 1.45 percent on all earnings for Medicare
1

6Former members who opted out of Social Security coverage in 1976 andreturn to UC employment do not pay Social Security taxes on their UC wages.
Employees in Safety classifications also do not pay Social Security taxes.

• Is appointed as a Regents’ Professor or Regents’ Lecturer• Is an employee hired as a visiting appointee
Employees who elect or default into Pension Choice become
members of UCRP and begin to earn UCRP service credit whencontributions begin — usually within one to two pay periods
after election or default enrollment into Pension Choice.
Employees who elect to switch to Pension Choice in their second
choice window become members of UCRP and begin to earnOnce you become a UCRP member, active membership continues
until you have a break in service (see “Plan Definitions” onpage 22). Membership is not affected by a reduction in appoint­
ment percentage without a break in service. A reduction in an
appointment percentage, however, will result in a reduction in theamount of service credit you accrue. Benefits based on futureservice may change if you transfer to a position eligible for Safety
benefits or become covered by a collective bargaining agreementthat includes a variation on the benefit formula.

SECOND CHOICE WINDOW TO BECOME A UCRP MEMBER
Savings Choice participants may become members of UCRP by
submitting an election to switch from Savings Choice to Pension
Choice during their second choice window.
A Savings Choice participant’s second choice window opens on
January 1 of the fifth calendar year anniversary of their Savings
Choice Election. For example, if an employee elects Savings
Choice in the 2024 calendar year, the second choice window
opens on January 1, 2029, and closes May 31, 2034 (or upon
submitting a valid election, whichever is sooner).
A second choice election may only be made by an active
employee who is participating in the Savings Choice option and
who is within their second choice window.
For those who elect to switch, UCRP membership begins on July
1 of the plan year following the election, subject to a payroll
processing deadline. For example, an employee who submits
an election to switch by May 31, 2024, will become a memberof UCRP effective July 1, 2024. An employee who submits anelection to switch from June 1, 2024, through May 31, 2025, will
become a member of UCRP effective July 1, 2025.

VESTINGTo vest means to acquire certain rights. Once vested, you
generally have a non-forfeitable right to receive UCRP
retirement benefits upon leaving the University and reachingretirement age. You must earn five or more years of service
credit to be vested.
You become vested in UCRP benefits whether you earn allservice credit as a member in one UCRP member class or tier orin multiple UCRP member classes and tiers.
For employees who switch to Pension Choice in their second
choice window (as described above), service credit earned
during years of participation in Savings Choice will be counted

UCRP: Membership

UCRP service credit at the beginning of the plan year (July 1)
following their election, subject to payroll processing deadlines.
See “Second Choice Window for UCRP Membership” below for
more information about this option.

toward vesting, as of the effective date of the switch to Pension Choice, in:• UCRP membership• The Pension Choice supplemental account (if applicable)• Retiree health benefits
Service credit earned during years of participation in Savings
Choice will not be included in the calculation of the pension
benefit.

INACTIVE MEMBERSHIPYou become an inactive member upon leaving University
employment and retain the right to future retirement benefits aslong as you leave your accumulations (employee contributions
plus interest) in the Plan, provided you satisfy one of thefollowing criteria:• Have at least five years of service credit• Are eligible for reciprocity (see “Reciprocity” below)• Were medically separated from University employment
and are eligible to apply for UCRP disability income (see“Disability Income” on page 16)• Are a faculty member of a University medical school who
has been appointed by the Veterans Administration to a
University-affiliated hospital, and, as a result, receive nofurther covered compensation, or• Became a Plan member July 1, 1989, or earlier, and reachedage 62 while still an eligible employee
After leaving the University, an inactive member may, at any time
before (and in lieu of) retiring, request a refund of accumulations.
If you elect a refund of accumulations, you waive the right to any
future Plan benefits (see “Refund of Accumulations” on page 11).
If you leave before earning five years of service credit, you may
also request a distribution of your accumulations at any time.
Upon distribution of your accumulations, you will forfeit any
service credit you have accrued unless you later return to UC
employment and reestablish it.

RECIPROCITYUCRP and the California Public Employees’ Retirement System(CalPERS) have reciprocity provisions to ensure continuity of
benefits for members who change employers and transfer
between the two retirement systems under certain circum­
stances. If you qualify for UCRP/CalPERS reciprocity, service
credit accrued under both systems can be used to determine
whether you are vested in benefits under both retirement
systems. Also, covered compensation earned under both

7

UCRP: Pensionable Earnings Maximums

UCRP Membership

Pensionable Earnings
Maximums

systems can be used to determine your highest average plancompensation under both systems. If you retire for disability
under CalPERS, you will be subject to the limitation on the
maximum total benefits that can be provided under both
systems. The reciprocal provisions do not apply to eligibility for
retiree health benefits.

The maximum amount of your compensation that counts
toward your retirement benefits may be affected by a number offactors, including the 2013 California Public Employees’ Pension
Reform Act (PEPRA) maximum, the IRC dollar maximum andUC guidelines about covered compensation.

To establish reciprocity for continuity of benefits between thetwo retirement systems, you must:• Be employed under the other retirement system within 180
days of leaving employment under the former system

PEPRA MAXIMUM

When you elect UCRP/CalPERS reciprocity, funds are nottransferred from one retirement system to the other. You
become a member of both systems. You are subject tomembership and benefit obligations and rights of each system.
You must retire under both systems on the same date for the
benefits of reciprocity to apply. Please note that UCRP/CalPERS
reciprocity does not apply to Savings Choice participation.

With some exceptions (described below), if you are a new hire in
the 2016 Tier the maximum covered compensation (or eligiblepay) that counts toward your pension benefits is consistent
with the maximum on pensionable earnings under PEPRA. Thismaximum also applies to many other California public pension
plans and is reviewed annually and may be adjusted. For the Plan
year beginning in 2024, the maximum is $151,446 ($181,734 formembers not paying into Social Security). The PEPRA maximum
applies to most people who are hired into an eligible faculty or
career staff appointment on or after July 1, 2016 (see below for
exceptions for some rehired, newly eligible and former CalPERScovered employees).

A provision for concurrent retirement is also available for UCRP
members who are also members of the California State Teachers’
Retirement Defined Benefit Program (CalSTRS). You are eligible
for concurrent retirement if you:

REHIRED, NEWLY ELIGIBLE AND FORMERCALPERS-COVERED EMPLOYEES• Become an active UCRP member on or after July 1, 2002

You are not subject to the PEPRA maximum if you:

• Leave your accumulations (if any) in the former system and• Elect reciprocity by completing the proper forms (see below)• Are a member of CalSTRS and• Elect UCRP retirement income after July 1, 2002
• Have satisfied the applicable age and service requirements
for early retirement
Members eligible for concurrent retirement receive benefits
similar to those for reciprocity. CalSTRS has similar concurrent
retirement provisions that apply to UCRP members; for more
information about CalSTRS concurrent retirement, contact
CalSTRS directly. Please note that UCRP/CalSTRS concurrent
retirement does not apply to Savings Choice participation.
To establish reciprocity at UC, you must complete form
UBEN 157 (Election of Reciprocity) and send it to UC
Human Resources. The form is part of the UCRP/CalPERS
Reciprocity Fact Sheet, available at ucal.us/reciprocity.
To find out how to establish reciprocity at CalPERS, call
CalPERS directly (see inside front cover). As long as
you remain eligible under the guidelines listed above,
you may establish UCRP/CalPERS reciprocity at any
time prior to retiring. Since UCRP and CalPERS provide
separate benefits, you’ll need to elect benefits from eachplan separately. That means that you will have to submit
two separate applications, one at UCRP and one at
CalPERS. Filing an application at one does not ensure
concurrent retirement at both.
8• Were a UCRP member before July 1, 2016, or• Were a Safe Harbor employee before July 1, 2016, or• Were a “Classic Member” under CalPERS and are eligible for
UCRP/CalPERS reciprocity (see “Reciprocity” on page 7). For
the purpose of exemption from the PEPRA maximum, youwill need to submit the UBEN 300 Self-Certification Form to
the UC Retirement Administration Service Center within
90 days of your Pension Choice election to confirm youreligibility. (Please note that this is separate from the processof establishing reciprocity.)
See page 17 for information about the IRC dollar limit for annual
earnings upon which total retirement benefits and contributions
may be based. The earnings limit beginning July 1, 2024, is$345,000 for employees who became members as ofJuly 1, 1994, or later.
See page 22 for information about what is and is not considered“covered compensation” (or “eligible pay”) when calculating
retirement benefits.

Service Credit

FUNDING THE PLAN

Service credit is the measure of time you have participated in
UCRP. Service credit is used to determine eligibility for UCRP
benefits and to calculate benefits such as monthly retirement.

UCRP benefits are funded by contributions from both the
University and active members and by the investment earnings
on UCRP assets. These contributions and earnings are placedin a trust fund and constitute a single pool of assets. Annual
actuarial valuations determine the Plan’s liabilities (that is,
projected benefits to be paid) and the funding status.
The UC Board of Regents may periodically adjust University andmember contribution rates to maintain adequate funding levels.

UNIVERSITY CONTRIBUTIONSUniversity contributions are used to pay UCRP benefits for all
members, and are not allocated to individual member accounts.
If the PEPRA maximum applies, UC also contributes to theDefined Contribution Plan to fund the supplemental benefit for
designated faculty (see definition on page 22), and for eligible
staff and other academic appointees who earn above the PEPRA
maximum. See the Defined Contribution Plan: Plan Summary on
page 29 for details on the supplemental benefit available toemployees who elected, or defaulted into, Pension Choice.

MEMBER CONTRIBUTIONSMember contributions for union-represented employees are
subject to collective bargaining.

Service credit is earned whenever you receive covered
compensation for an eligible appointment once you havebecome a UCRP member. The maximum that you can earn for ayear of full-time work is one year of service credit. Part-time orvariable-time work results in a proportionate amount of service
credit. For example, if you work 50 percent time for one year,
you receive one-half year of service credit.

SICK LEAVE
If you retire within four months after leaving the University, any
unused sick leave is converted to service credit. Eight hours ofunused sick leave converts to approximately one day of service
credit. Sick leave can only be converted to additional service
credit after you have reached the five years of service required
to vest in UCRP. Sick leave converted to service credit cannot be
used toward vesting in UCRP.
Because service credit is a factor in the benefit formula, thisadditional service credit may increase your monthly retirement
income, and it may be used to reached the ten years of service
credit needed to be eligible for annuitant health and welfare.

DISABILITY STATUS

Members who are subject to the PEPRA maximum makemandatory pretax contributions to UCRP equal to 7 percentof covered compensation, up to the PEPRA maximum, andmandatory pretax contributions to the Defined Contribution
Plan supplemental account equal to 7 percent of their income
above the PEPRA maximum, up to the IRC maximum.

If you become disabled and receive UCRP disability income,you may continue to earn service credit at the same rate earned
during the 12 months of continuous service just before yourdisability date. See page 15 to learn about eligibility for UCRP
disability income.

Members who are not subject to the PEPRA maximum makemandatory pretax contributions to UCRP equal to 7 percent ofcovered compensation, up to the IRC maximum.

You continue to earn service credit until or unless increased
service credit would cause your retirement benefit, if you wereto retire, to exceed your disability benefit.

Member contributions are deducted automatically from yourgross wages each pay period and credited to your individual
member account. Wages on which contributions are assessed arecalled covered compensation. Your contributions to the Plan are
deducted on a pretax basis and, therefore, reduce your taxable
income.
The Plan Administrator maintains a record of each member’s
UCRP contributions and credits the amount with interest at astated rate (currently 6 percent per year). Upon leaving University
employment, you may receive a distribution of your UCRP
accumulations (your employee contributions and accumulated
interest) or leave them in UCRP (University contributions mustremain in UCRP). See “Refund of Accumulations” on page 11.

UCRP: Contributions, Service Credit

Contributions

PARTIAL-YEAR CAREER APPOINTMENTS
If you work full time during a 9-, 10-, or 11-month partial-year
appointment, you earn one year of service credit for each Plan
year. If you work part time during a partial-year appointment,
you earn proportionate service credit. For example, if you work
50 percent time during a partial-year appointment, you earn
one-half year of service credit. You begin to earn service credit
once you have become a UCRP member. See page 24 for an
explanation of the potential effect of a partial-year career
appointment on your highest average plan compensation(HAPC).
9

UCRP: Service Credit

Service Credit
MILITARY LEAVE

PAST SERVICE

If you return to University service in accordance with yourreemployment rights following a military leave, you receive
service credit for the time spent in uniformed service and for aperiod following uniformed service, provided you return to workwhen the leave ends and satisfy other applicable requirements.

If you have previous Plan membership, you retain service credit
for the earlier period if you leave your accumulations (youremployee contributions and accumulated interest) in the Plan
upon leaving the University. If you previously received a refundof accumulations for the earlier period, you may purchaseservice credit for the earlier period, subject to the rules
described in the UCRP Service Credit Purchase Guide, available
online at ucal.us/purchase. If you previously retired and received
a lump sum cashout, you may not purchase service credit for any
period before the cashout date.

You earn service credit for military leave at the same rate
earned during the 12 months of continuous service just before
the leave. For example, if you earned three-fourths of a year ofservice credit in the 12 months just before military leave, youwill earn three-fourths of a year of service credit for a year of
military leave.
The Retirement Administration Service Center or your local
Benefits Offices can provide more information about
establishing service credit for military leaves.

LEAVE WITHOUT PAY
You do not earn service credit during a leave without pay,
but you may be able to establish service credit through a service
credit purchase (see the UCRP Service Credit Purchase Guide,available online at ucal.us/purchase).

SABBATICAL OR PAID LEAVE
During a sabbatical or paid leave, you earn service credit inproportion to the percentage of full-time pay (i.e., covered
compensation) you receive. For example, if you are on sabbaticalleave at two-thirds pay for one year, you receive two-thirdsof a year of service credit, but you may be able to establish
service credit for the unpaid portion of your leave through aservice credit purchase (see the UCRP Service Credit Purchase
Guide, available online at ucal.us/purchase).

EXTENDED SICK LEAVE
You earn up to 80 percent of service credit for periods ofextended sick leave during which you receive Workers’
Compensation, but you may be able to purchase service credit
for any remaining percentage (see the UCRP Service Credit
Purchase Guide, available online at ucal.us/purchase).

10

You may not purchase service credit for time worked during
your primary retirement option selection window, prior to theeffective date of your enrollment in Pension Choice (UCRP), orfor time spent in Savings Choice (for those who elect to switch
to UCRP in their second choice window).

Refund of Accumulations

A “service credit purchase” (formerly known as a “buyback”) is apayment to establish service credit for an approved leave or toreestablish service credit for a previous period of active UCRP
membership. A service credit purchase is available only to active
UCRP members.

Upon leaving University employment, you may receive a
distribution of your UCRP accumulations or leave them in UCRP
(University contributions must remain in UCRP).

A SERVICE CREDIT PURCHASE IS AVAILABLE FOR:• Approved leaves, including:– Leaves without pay– Partially paid sabbatical leaves

A refund of accumulations cancels your right to any future UCRP
benefits, or retiree health eligibility, based on any period ofservice prior to the refund unless you return to University
employment as an active UCRP Member and reestablish theservice credit (see the UCRP Service Credit Purchase Guide,available online at ucal.us/purchase).
A refund of any remaining accumulations after your death isconsidered a death benefit (see “Death Benefits” on page 14).

– Extended sick leaves– Temporary layoffs or furloughs (except during a partial-year
career appointment)• Previous periods of active UCRP membership for whicha refund of accumulations was received (see “Refund of
Accumulations” on page 11).

A SERVICE CREDIT PURCHASE IS NOT AVAILABLE FOR:• Time worked during the primary retirement option election
period, prior to the effective date of Pension Choice
enrollment/UCRP membership• Time worked while a Savings Choice participant• Any break-in-service period• Any period of ineligible service, such as temporary
employment or indefinite layoff• Any furlough during a partial-year career appointment• A reduction in appointment• Any period of CalPERS membership• Any period of service that preceded a lump sum cashout• Any period of less than four weeks, unless necessary forvesting purposes• Any period of military leave July 1, 1966, or later (the member
receives full service credit without making contributions)• Service credit awarded to an alternate payee in a divorce
You can find complete service credit purchase information andinstructions in the UCRP Service Credit Purchase Guide, available
online at ucal.us/purchase.

11

UCRP: Service Credit Purchase, Refund of Accumulations

Service Credit PurchaseUCRP: Retirement Benefits

Retirement Benefits
You can elect to retire and receive benefits at any time after
you become eligible — that is, when you reach age 55 and leave
University employment with at least five years of service credit. 2

HOW RETIREMENT INCOME IS CALCULATED
The calculation of basic retirement income is a two-step process:1. Calculate the benefit percentage (not to exceed 100%):

If You Leave UC and Don’t Retire
In most cases, vested members who leave University
employment and do not, or are not eligible to, retire at thetime they separate should not delay electing retirement
benefits past age 65. At age 65, an inactive member will haveattained the maximum UCRP benefit payable under the Plan.
No retroactive benefits are paid to members who do notelect retirement benefits at age 65. If you also have service
in the 1976 Tier, the maximum benefit payable is available
sooner, at age 60.

Service credit × age factor
The age factor is based on your age in complete years andmonths on the date of your retirement as shown in the charton page 13.
Example:A member retires at age 65 (age factor .0250), with 20 yearsof service credit.
20 years × .0250 = 50.0% (benefit percentage)
2. Multiply the benefit percentage by your highest averageplan compensation or HAPC

BASIC RETIREMENT INCOME
Basic retirement income is your normal monthly lifetime benefit.
This basic amount is adjusted if you want to provide monthly
survivor income for a spouse, domestic partner or anotherperson upon your death (see “Alternate Monthly Payment
Options” at right). Also, your benefit must be adjusted if themonthly benefit exceeds maximum benefit levels. See “PlanMaximum Benefit” on page 14 and “Internal Revenue CodeProvisions” on page 17 for more information.
Basic retirement income is a percentage of your average salary,or HAPC (highest average plan compensation; see definition on
page 24), up to the PEPRA or IRC maximum. The percentage isbased on your service credit and age at retirement.
ELECTING RETIREMENT INCOME
To elect retirement income, first read the Retirement Handbook,available online at ucal.us/retirementhandbook or from yourlocal Benefits Office or the UC Retirement Administration
Service Center.
Your retirement date cannot be earlier than the first of themonth in which you submit your request to retire.

HAPC is the member’s average monthly salary (full-time
equivalent compensation — 100 percent of covered
compensation that would be paid for a normal, regularfull-time position) calculated over the highest 36 continuous
months preceding retirement, up to the PEPRA maximum or
the IRC maximum, whichever is applicable. This 36-month
period is usually, although not necessarily, the period justbefore employment ends. Also see the definition on page 24.
Example:Your benefit percentage is 50.0%. The HAPC is $5,000.
50.0% of $5,000 = $2,500
Your basic retirement income is $2,500 per month.
If you had a partial-year career appointment, contact
the UC Retirement Administration Service Center(800‑888‑8267) for information about your basic
retirement income.

ALTERNATE MONTHLY PAYMENT OPTIONS
If you want to provide a monthly lifetime benefit upon yourdeath for another person — called a contingent annuitant —several options are available. The contingent annuitant is aperson you choose at the time of retirement, and you may
choose only one. If your contingent annuitant is an eligible
survivor (see page 24 for a definition), that person may also be
eligible to continue UC retiree health benefits after your death.

212

Employees who became UCRP members on or before July 1, 1989, are vested
regardless of service credit if they leave University employment in an eligible
position after reaching age 62.

The selection of the option and contingent annuitant becomesirrevocable on the retirement date on the election form (or 15 days
after the date of the letter confirming that your election has been
received, if later). Also, there are legal and financial considerations

Alternate monthly payment options are:

To provide this benefit, you receive a reduced retirement benefit
for life. The amount of the reduction varies according to theoption you choose as well as the average life expectancy of
you and the contingent annuitant. If the person you name ascontingent annuitant dies before you, you cannot name anothercontingent annuitant and your benefit will not be adjusted.

Full Continuance to Contingent Annuitant

UCRP: Retirement Benefits

when designating a contingent annuitant (see “Designation ofContingent Annuitant” on page 20).

OPTION A

You receive a reduced monthly benefit for life. When you die,the contingent annuitant receives a lifetime monthly benefit
equal to your monthly benefit.
Example3
Basic retirement income is $2,500. The reduction factor is applied:If you are married or have a registered domestic partner anddesignate someone other than your legal spouse or partner asa beneficiary or contingent annuitant, you need to consider the
spouse’s/partner’s community property rights. See “Community
Property” on page 20 for more information.

0.89269 × $2,500=$2,231.72 monthly retirement benefit
You receive $2,231.72 each month for life. Thereafter, thecontingent annuitant receives $2,231.72 each month for life.

Please note that an Internal Revenue Code regulation may placea limitation on the extent your monthly benefits can be reduced
to provide for a non-spouse contingent annuitant who is morethan 10 years younger than you. As a result, some or all of thealternate payment options may not be available for you to electif the contingent annuitant is more than ten years younger thanyou. (See “Minimum Distribution Incidental Benefit” on page 17
for more information.)

3

The example assumes that both you and your contingent annuitant are age
65. If your ages are different, the dollar amounts will vary somewhat because
different reduction factors will be used. Amounts are rounded down to thenearest dollar.

RETIREMENT AGE FACTORS
AgeComplete Months from Last Birthday to Retirement Date
0

1

2

3

4

5

6

7

8

9

10

11

55

50*

.0110

.0111

.0112

.0114

.0115

.0116

.0117

.0118

.0119

.0121

.0122

.0123

56

51*

.0124

.0125

.0126

.0128

.0129

.0130

.0131

.0132

.0133

.0135

.0136

.0137

57

52*

.0138

.0139

.0140

.0142

.0143

.0144

.0145

.0146

.0147

.0149

.0150

.0151

58

53*

.0152

.0153

.0154

.0156

.0157

.0158

.0159

.0160

.0161

.0163

.0164

.0165

59

54*

.0166

.0167

.0168

.0170

.0171

.0172

.0173

.0174

.0175

.0177

.0178

.0179

60

55*

.0180

.0181

.0182

.0184

.0185

.0186

.0187

.0188

.0189

.0191

.0192

.0193

61

56*

.0194

.0195

.0196

.0198

.0199

.0200

.0201

.0202

.0203

.0205

.0206

.0207

62

57*

.0208

.0209

.0210

.0212

.0213

.0214

.0215

.0216

.0217

.0219

.0220

.0221

63

58*

.0222

.0223

.0224

.0226

.0227

.0228

.0229

.0230

.0231

.0233

.0234

.0235

64

59*

.0236

.0237

.0238

.0240

.0241

.0242

.0243

.0244

.0245

.0247

.0248

.0249

65+

60+*

.0250

Example: For a member born on March 8, 1964, and retired on July 1, 2024, the age factor is .0184 (60 years plus three months).
* Applies only to certain eligible employees in AFSCME, CNA and UPTE bargaining units.

13

UCRP: Retirement Benefits, Death Benefits

Retirement Benefits

Death Benefits

OPTION B

PAYMENTS TO BENEFICIARIES

Two-Thirds Continuance to Contingent Annuitant
You receive a reduced monthly benefit for life. When you die,the contingent annuitant receives a lifetime monthly benefit
equal to two-thirds of your monthly benefit.
ExampleBasic retirement income is $2,500. The reduction factor, in thiscase 0.925806, is applied:
4

When you die, UCRP pays a basic death payment of $7,500 toyour beneficiary, in addition to any monthly UCRP income that
may be payable to the contingent annuitant.5
After your death and, if applicable, the death of your contingent
annuitant, any remaining accumulations are paid to yourbeneficiary.
UCRP death benefits are not the same as University life
insurance benefits or departmental death benefits. For
information about these benefits, see the appropriate
version of Your Guide to Survivor and Beneficiary Benefits,available online at ucal.us/survivorhandbook or from the
UC Retirement Administration Service Center.

0.925806 × $2,500 = $2,314.51 monthly retirement benefit
You receive $2,314.51 each month for life. Thereafter, yourcontingent annuitant receives $1,543 each month for life.
OPTION C
One-Half Continuance to Contingent Annuitant
You receive a reduced monthly benefit for life. When you die,the contingent annuitant receives a lifetime monthly benefit
equal to one-half of your monthly benefit.
Example4
Basic retirement income is $2,500. The reduction factor, in thiscase 0.943303, is applied:
0.943303 × $2,500 = $2,358.26 monthly retirement benefit
You receive $2,358.26 each month for life. Thereafter, yourcontingent annuitant receives $1,179.13 each month for life.

PLAN MAXIMUM BENEFIT
The maximum UCRP basic retirement income is 100 percent
of your HAPC or the maximum annual benefit that can be paid
under the Internal Revenue Code (IRC), whichever is less. This
limit applies to your retirement income based on all University
employment. The limit to 100 percent of your HAPC affects only
a few UCRP members, most of whom have 40 years or more ofservice credit. For those affected, this limit applies for as long as
the benefit is paid.
If part of your UCRP benefit has been awarded to an alternate
payee (see page 20), the maximum benefits will be determinedby taking into account any benefit payable to the alternate
payee.
See also “Internal Revenue Code Provisions — MaximumContribution and Benefit Limitations” on page 17.

414

The example assumes that both you and your contingent annuitant are age 65.
If your ages are different, the dollar amounts will vary somewhat because
different reduction factors will be used. Amounts are rounded down to thenearest dollar.

PRERETIREMENT SURVIVOR INCOME
If you die while employed or while receiving UCRP disability
benefits and you have at least two years of service credit,
monthly income is paid to your eligible survivors — that is,eligible spouse or domestic partner, or if none, eligible child(ren),or if none, eligible dependent parent(s) (see the definitions on
pages 23–24). The amount paid to the eligible survivor(s) is
15 percent of your final salary.
If you die while an inactive member, monthly income is paid
to your surviving spouse or surviving domestic partner only if
you are eligible to retire at the time of death. If you die while aninactive member who is not eligible to retire, beneficiaries will
receive a refund of your UCRP contributions and the interest
earned.
DEATH WHILE ELIGIBLE TO RETIRE
If you die while eligible to retire (that is, age 55 with at least
five years of service credit) but have not yet elected to retire, alifetime retirement benefit may be payable to your surviving
spouse or domestic partner. The benefit is calculated as though
you had elected to retire on the day after the date of death andhad chosen Option A (full continuance) with your spouse ordomestic partner named as contingent annuitant. The benefit ispayable beginning the day after your death.
If you die after electing retirement income, the benefit payable
to a survivor will depend upon the monthly retirement benefit
option you choose at the time you retire. If you choose basic
retirement income, your survivor will receive no monthly income.
See “Alternate Monthly Payment Options” on page 13 for
information on benefits payable to your contingent annuitant.
5

Beneficiaries of active members who became Plan members before
Oct. 1, 1990, receive $1,500 plus one month’s final salary, if this amountis greater than $7,500.

Disability Benefits

After receiving monthly benefits for one year, UCRP members
are eligible to receive an annual cost-of-living adjustment(COLA), starting on the following July 1. The COLA is based on
the Consumer Price Index (CPI) increase for the preceding year.
Generally, the COLA for any Plan year equals:

The UC Retirement Plan provides disability income benefits if
you are an active member with five or more years of service
credit6 and submit a timely application (see “Applying for
Disability Benefits” on page 16). For Pension Choice members
who switched from Savings Choice, service credit earned while aparticipant of Savings Choice counts toward eligibility fordisability income, but it does not count toward the calculation of
disability income (see page 16). The UCRP disability benefits
coordinate with UC’s short-term and supplemental disability
plans. See A Complete Guide to Your UC Health and Welfare
Benefits for more information.

• 100 percent of the CPI increase up to 2 percent• 75 percent of the CPI increase over 4 percent• A maximum of 6 percent
If the CPI decreases, UCRP benefits are not reduced.
The CPI used to determine the annual COLA is an average of the
CPIs for the Los Angeles and San Francisco metropolitan areasand is measured from February to February.

If you are eligible to retire, applications for disability andretirement should be made simultaneously so retirement
benefits will continue in the event disability benefits are notapproved.
GENERAL REQUIREMENTS
The Plan Administrator determines your eligibility to receive
UCRP disability income based on qualified medical evidence andaccording to written procedures governing the considerationand disposition of disability issues. These procedures include
your right to review decisions concerning your status. Onceestablished, the Plan Administrator periodically reevaluates youreligibility.
When applying for disability income, you are required to submit
medical evidence, which is considered in determining eligibility
for the benefit. To receive disability income initially and at any
time while receiving it, you also may be required to undergo
medical examination(s) by physician(s) chosen by the Plan
Administrator or to participate in vocational assessment or
rehabilitation programs. If you do not comply, your application
for UCRP Disability may be denied or previously approved UCRP
disability income may be suspended.
DISABILITY DEFINITIONS“Disabled” means being unable to engage in substantial gainful
activity because of a medically determinable physical or mental
impairment that is permanent or expected to last 12 continuous
months or longer from the UCRP disability date.
Initially, “substantial gainful activity” means physical or mental
activities that pay 50 percent or more of your final salary(adjusted for cost-of-living increases; see “Cost-of-Living
Adjustments” at left). After the first year of disability income,your impairment is reevaluated. Disability income continues if
you are unable to earn the amount defined annually by theSocial Security Administration in determining substantial gainful
activity. In 2024, this amount is $1,550 per month.
6

Any service credit that was established for a leave period is not included indetermining eligibility for disability benefits.

15

UCRP: Cost-of-Living Adjustments, Disability Benefits

Cost-of-Living Adjustments

UCRP: Disability Benefits

Disability Benefits
DISABILITY DATE
If you are eligible as defined by the Plan, disability income ispayable. The first day of eligibility, or the disability date, is thelater of:• The first of the month in which the Plan Administrator
receives the application, or• The day after your last day on pay status

DISABILITY INCOME
Disability income is a percentage of your monthly final salary.
The percentage is based on years of service credit as of thedisability date, as shown below.
Years of UCRP
Service Credit

Monthly Benefit(percentage of final salary)

5 (less than 6)

13.1%

6 (less than 7)

14.8%

7 (less than 8)

16.5%

8 (less than 9)18.2%

9 (less than 10)

19.9%

10 (less than 11)

21.6%

11 (less than 12)

23.3%

12 or more

25.0%

If you have less than five years of UCRP service credit but
are eligible for UCRP disability income because of UCRP/CalPERS reciprocity (see page 7) or because of service credit
earned as a former Savings Choice participant (see page 7), themonthly benefit will be less than that shown in the schedule
above. Contact the Retirement Administration Service Center,
800‑888‑8267, for further information.

MAXIMUM DISABILITY INCOME
The maximum disability income that may be payable, whencombined with income from other sources, depends on your
UCRP membership date. You will receive further details if you
become eligible for disability income.

16

Applying for Disability Benefits
To apply for UCRP disability income, you should contact yourlocal Benefits Office to explore your various disability
income options. Be prepared to provide medical information
to substantiate your application. You should make an
appointment to apply for disability benefits as soon as it
appears that you won’t be able to return to work because ofyour disability. If you become an inactive member, you are
eligible to apply for disability income within 12 months ofleaving University employment if medical evidence showsthat you would have been entitled to disability income as ofthe separation date and your accumulations have remainedon deposit with the Plan. But, to preserve your right tocontinue UC-sponsored health coverage, you must apply
within 120 days of your separation.

LENGTH OF THE DISABILITY INCOME PERIOD
If you continue to be disabled as defined by the Plan, you canreceive UCRP disability income as follows:• If you are under age 65 on the UCRP disability date, you may
receive disability income for up to five years or until age 65,
whichever comes later;• If you are age 65 or older on the UCRP disability date, you
may receive disability income for up to 12 months or until
age 70, whichever comes later.
Special provisions apply to Safety members.

WHEN DISABILITY INCOME STOPS(REGARDLESS OF UCRP DISABILITY DATE)In all cases, if you are eligible to retire when disability income
stops, you can elect UCRP retirement income.
The Plan Administrator will notify you as to when and how yourbenefits will be affected so that you can decide about retirement
before your disability income stops. See “Retirement Benefits”
on page 12 for eligibility requirements, calculations and otherprovisions.
If a disabled member dies, survivor benefits may be payable
either immediately or at a future date (see “Death Benefits” onpage 14).

Internal Revenue
Code Provisions

In certain instances where there are compelling circumstances,
UC retirees are rehired to help fill a particular staffing need.
Under UC policy, those retired employees who later return to
UC in staff or Senior Management Group positions must follow
these provisions:

IRC provisions may affect your pension from UCRP. As explained
below, the IRC limits the amount of annual earnings on which
contributions and benefits may be based, places a maximum on
the annual benefits a member may receive, and specifies thedate by which distributions (in defined minimum amounts)
must begin.

• Reemployment must not occur until there has been a break inservice of at least 30 days, and preferably 90 days.
• The appointment must be limited to the equivalent of no
more than 43 percent time in a 12-month period; for faculty
the appointment cannot be more than 43 percent time permonth.
• Employment of a staff retiree must not exceed a total of
12 months; if reemployment is necessary after 12 months,
the request for continued employment must follow the same
approval process as the original appointment.
• Reemployment must be in response to a University need;for example, the retired employee possesses skills andinstitutional knowledge that the hiring department cannot
otherwise obtain with equal cost effectiveness, the hiring
department anticipates a prolonged process for hiring a
replacement, or the need for the retired employee to assist
the replacement in acquiring necessary skills and knowledge.
Rehired employees must submit a completed UCRP Reemployed
Retiree Notification form (UBEN 1039), available from theBenefits Office.
A retired employee who is receiving UCRP monthly retirement
income may suspend retirement income payments and be
reemployed in a career or long-term appointment after anappropriate break in service.
If you suspend retirement income because you’ve been rehired
into a UCRP-eligible position, you must re-retire the day after
you again leave UC employment.
For more information, see the Returning to UC Employment After
Retirement Fact Sheet available online at ucal.us/returntowork.

MAXIMUM CONTRIBUTION AND BENEFIT LIMITATIONS
IRC §401(a)(17) sets a dollar limit for annual earnings uponwhich total retirement benefits and contributions may bebased. The earnings limit beginning July 1, 2024, is $345,000 for
employees who became members as of July 1, 1994, or later.
For those who were active members before July 1, 1994, theearnings limit is $505,000.
Note that for most UC employees hired into an eligible faculty or
career staff appointment on or after July 1, 2016, the maximum
covered compensation that counts toward pension benefits is
consistent with the maximum on pensionable earnings under
PEPRA. See “PEPRA Pensionable Earnings Maximum” on page 25.
IRC §415(b) places a limit on the maximum total benefits
payable in any calendar year from a defined benefit plan such
as UCRP. The limit is based, in part, on the member’s age. For
example, the limit for age 62 and older in 2024 is $275,000.
The University of California 415(m) Restoration Plan — anonqualified pension plan — became effective Jan. 1, 2000, to pay
benefits that would not otherwise be payable because of the§415(b) limit. If your UCRP benefits are affected by the §415(b)limit, you will receive additional information about the 415(m)Restoration Plan from the UC Retirement Administration Service
Center.
Generally, the 415(m) Restoration Plan will not be applicable to
new employees subject to the PEPRA maximum.

MINIMUM DISTRIBUTION INCIDENTAL BENEFIT (MDIB)
The Minimum Distribution Incidental Benefit (MDIB) is a federal
tax regulation in Internal Revenue Code §401(a)(9) that applies tonon-spouse contingent annuitants, including domestic partners.
The MDIB restricts the percentage of the member’s monthly
income that may be paid to a non-spouse contingent annuitant
who is more than 10 years younger than the retiring member. As
a result, some or all of the alternate payment options may not
be available if the contingent annuitant is more than ten years
younger than the member. If you believe this regulation may apply
to your situation, please contact the Retirement Administration
Service Center or your local benefits office to make sure you haveaccurate information about your payment options.

17

UCRP: Reappointment After Retirement, Internal Revenue Code Provisions

Reappointment After
RetirementUCRP: Internal Revenue Code Provisions

Internal Revenue
Code Provisions
REQUIRED MINIMUM DISTRIBUTIONSUCRP distributions that are not eligible for rollover include:

You must begin receiving minimum distributions from the Plan
by April 1 of the calendar year following the later of:• Monthly retirement or disability income• The year in which you leave University employment• Lump sum QDRO distributions to a non-spouse (as definedby federal tax law)

• The year in which you reach age 73 (for individuals who turn72 on or after January 1, 2023)
Generally, the UCRP formulas for retirement income satisfy
the minimum distribution requirements. If you do not apply for
retirement benefits by the above date, basic retirement income
will begin automatically. Required minimum distributions are noteligible for rollover.
Each year, the UC Retirement Administration Service
Center notifies members who are subject to the minimum
distribution requirements and provides information andindividual calculations to help them comply. Required minimum
distributions are calculated in accordance with U.S. Treasury
regulations.

• QDRO monthly income or

You (or your spouse or former spouse) may also roll over an
eligible Plan distribution that has been paid to them, as long as
the rollover to the IRA or new plan occurs within 60 days ofreceipt of the distribution. If you want to roll over 100 percent of
the distribution, you must replace, from personal savings orother sources, an amount equal to the taxes that were withheld
when the distribution was issued. Any amount not rolled overwill be taxed as ordinary income for the year in which the
distribution was issued. It may also be subject to early
distribution penalties. See “Taxes on Distributions — Tax
Withholding,” at right. For more detailed information, see theSpecial Tax Notice for UC Retirement Plan Distributions available
on UCnet (ucal.us/specialtaxnotice).
INTERNAL ROLLOVERSROLLOVERSINTO THE PLAN
UCRP does not accept rollovers except for service credit
purchases.
FROM THE PLAN
See the Special Tax Notice for UC Retirement Plan Distributions
available on UCnet (ucal.us/specialtaxnotice) for information
about the following UCRP distributions, which are eligible fordirect rollover:• A refund of accumulations• Lump sum death payment to a surviving spouse• Lump sum distributions to a spouse or former spouse under aqualified domestic relations order (QDRO) and• Lump sum death payment to a non-spouse beneficiary (to an
inherited IRA and not to another plan)
A distribution that is eligible for direct rollover is subject tomandatory 20 percent federal tax withholding unless it isdirectly rolled over from the Plan to a traditional IRA, to another
employer plan that accepts rollovers, or to the University’s
Defined Contribution, Tax-Deferred 403(b), or 457(b) Deferred
Compensation Plans (see “Internal Rollovers,” below). If thedirect rollover is to a Roth IRA, the pretax amount of the rollover
will be reported as taxable income in the year of distribution.7718

Please consult your tax adviser before a rollover to a Roth IRA. You may owe
substantial federal and state taxes due to the rollover to a Roth IRA and you
may be subject to an underwithholding penalty.

If you have an account in UC’s Defined Contribution Plan,
Tax-Deferred 403(b) Plan or 457(b) Deferred Compensation Plan,
you may rollover eligible UCRP distributions to these plans.

TAXES ON DISTRIBUTIONSINCOME TAX
Except as described below, all distributions from UCRP are
subject to federal and state ordinary income taxes. The benefit
attributable to any service credit purchases made on an after-tax
basis is not taxable when distributed. Any pretax portion ofa distribution is taxable income in the year the distribution isissued.
EARLY DISTRIBUTION PENALTIESIn addition to being taxed as ordinary income, the taxable
portion of a refund of accumulations taken before age 59½ (early
distributions) may also be subject to nondeductible federal andstate penalty taxes — currently a 10 percent federal tax and a2½ percent California state tax. There are, however, a number ofcircumstances in which early distributions may be exempt fromthe penalty taxes. The exceptions are described in the Special Tax
Notice for UC Retirement Plan Distributions available on UCnet(ucal.us/specialtaxnotice).
The UC Retirement Administration Service Center does notassess early distribution penalties when a distribution is paid. If
you are subject to the penalties, you are responsible forreporting them to the IRS when you file your income tax returns.

TAX WITHHOLDING
The Plan Administrator withholds federal and California state
income taxes (for California residents) in accordance with federal
and state law. Income tax for states other than California is notwithheld. You should consult a tax adviser about tax liability.
DISTRIBUTIONS ELIGIBLE FOR ROLLOVER
Distributions that are eligible for rollover (see “Rollovers” onpage 18) are subject to 20 percent federal tax withholding if
they are paid to you, your spouse, former spouse or non-spouse
beneficiary. No taxes are withheld if the distributions are directlyrolled over to a traditional IRA or another employer plan. If you
request a distribution to a Roth IRA, you will be asked to selectyour withholding preferences. Please consult your tax adviser;
the pretax portion of the rollover will be reported as taxable
income in the year of distribution. For more information, see theSpecial Tax Notice for UC Retirement Plan Distributions available
on UCnet (ucal.us/specialtaxnotice).
TAX STATEMENT
Each January, the Plan Administrator files a Form 1099-R withfederal and state tax authorities, with a copy to the individual,
for each distribution paid during the previous year. The formshows the total and taxable amounts of the individual’s
distribution(s).
Those who receive more than one type of distribution are sent a
separate Form 1099-R for each type of distribution.

CLAIMS PROCEDURES
A member, survivor, contingent annuitant or beneficiary must
submit a request to receive benefits or a distribution from thePlan. Claims for benefits must be made in accordance withprocedures established by the UC Retirement Administration
Service Center. No Plan distribution will be made until theclaimant has provided all pertinent information requested by the
UC Retirement Administration Service Center.
Generally, claims are processed within 90 days after the UC
Retirement Administration Service Center receives the request
and any other required information. If a claim is denied, the UC
Retirement Administration Service Center will provide a written
notice to the claimant, explaining the reason for denial and theright of the claimant, or the claimant’s authorized representative,
to appeal the denial by requesting an independent review by thePlan Administrator. The appeal must be made within 60 days ofthe notification of the denial. The appeal must be in writing,accompanied by documentation supporting the claim, and sent
to Plan Administrator, UC Human Resources, P.O. Box 24570,
Oakland, CA 94623-1570. The Plan Administrator may require
the claimant to submit additional documentation within 30 daysof a written request. The claimant will receive a written noticeand explanation of the Plan Administrator’s decision on theappeal within 120 days of the Plan Administrator’s receipt of theappeal, unless circumstances require a longer period. The
decision of the Plan Administrator will be final and conclusive on
all persons.
If, after exhausting administrative appeal procedures, theclaimant still believes that a benefit has been improperly paid or
denied, the claimant has the right to initiate legal proceedings.
Send service of process to the Regents of the University ofCalifornia, Trustee of the University of California Retirement
Plan, c/o UC Legal — Office of the General Counsel,
1111 Franklin Street, 8th Floor, Oakland, CA 94706.

PLAN ADMINISTRATIONThe Vice President of Human Resources is the Plan
Administrator with responsibilities for the day-to-day
management and operation of the Plan. The UC Retirement
Administration Service Center provides the necessary
recordkeeping, accounting, reporting, receipt and disbursementof Plan assets to eligible Plan members.
The Office of the Chief Investment Officer has primary authority
for investing the assets of the Plan trust consistent with theinvestment policies established by the Regents. The Office of the
Chief Investment Officer also serves as custodian of the Plantrust.

19

UCRP: Additional Information

Additional Information

UCRP: Additional Information

Additional Information
PLAN CHANGESThe Plan is subject to change and to independent audit tocomply with applicable federal and state statutes, U.S. Treasury
regulations and industry standards. Members are notified
whenever substantive changes to the Plan occur. Although thePlan is expected to continue indefinitely, the Regents reserve
the right to amend or terminate the Plan at any time.
The University will take appropriate action concerning proposedchanges that may trigger notice, consultation, and meeting andconferring obligations under the Higher Education EmployerEmployee Relations Act.

marriage, domestic partnership, the birth of a child, divorce ordeath — or in your beneficiaries’ contact information.
A will or trust does not supersede a designation of beneficiaryor contingent annuitant, nor does either supersede the Plan’s“default” beneficiary rules (described at left) that apply in theabsence of a valid beneficiary designation.
Note: To designate a beneficiary for the Retirement
Savings Program (DC Plan, including the Pension Choicesupplemental benefit or Savings Choice account, 403(b)Plan, and 457(b) Plan), contact Fidelity Retirement
Services directly at 866-682-7782 or netbenefits.com.

DESIGNATION OF BENEFICIARY
You should designate a beneficiary immediately upon becoming
a UCRP member. When you die, the beneficiary receives the basic
death payment and any accumulations remaining after all benefits
have been paid. You may name more than one beneficiary andspecify the percentage that each beneficiary is to receive. A
beneficiary may be a person, trust or organization.
If you do not name a beneficiary or if the beneficiary designation
is no longer effective, UCRP “default” beneficiary designation
rules require that any benefits be paid to your survivors in thefollowing order of succession:• Surviving legal spouse or surviving domestic partner or, if
none,• Surviving children, natural or adopted, on an equal-share basis(children of a deceased child share their parent’s benefit) or, if
none,• Surviving parents on an equal-share basis or, if none,• Brothers and sisters on an equal-share basis or, if none,

DESIGNATION OF CONTINGENT ANNUITANT
You can designate one contingent annuitant at retirement if you
want to provide a monthly lifetime benefit for that person. If
your contingent annuitant is an eligible survivor (see page 24 fora definition), that person may also be eligible to continue UC
retiree health benefits after your death. Please note that an
Internal Revenue Code regulation may place a limitation on theextent your monthly benefits can be reduced to provide for anon-spouse contingent annuitant who is more than 10 years
younger than you. As a result, some or all of the alternate
payment options may not be available for you to elect if acontingent annuitant who is not your spouse is more than ten
years younger than you. (See “Minimum Distribution Incidental
Benefit” on page 17 for more information.)
The designation is irrevocable as of your retirement date or
15 days from the date on your confirmation letter, whicheveris later — you cannot name a new contingent annuitant (see“Alternate Monthly Payment Options” on page 13).

• Your estate
Beneficiary designations should be made online by signing in
to UCRAYS on the right side of the UCnet home page (or atretirementatyourservice.ucop.edu). You may name or change
your beneficiary online at any time.
If you do not have Internet access or are unable to use theonline application, complete form UBEN 116 (Designation ofBeneficiary — Employees). Retirees, former employees and others
must use form UBEN 117 (Designation of Beneficiary — Retirees,
Former Employees and Others) to name UCRP beneficiaries.
These forms are available from local Benefits Offices or the UC
Retirement Administration Service Center.
You should periodically review your beneficiary designation(s)to reflect any changes in your family situation — for example,

20

COMMUNITY PROPERTY
If you are married or have a registered domestic partner anddesignate someone other than your legal spouse or partner as abeneficiary or contingent annuitant, you may need to consider
the spouse’s/partner’s community property rights. For residents
of a community property state such as California, a designationof beneficiary or contingent annuitant may be subject tochallenge if the spouse/partner would consequently receive lessthan the share of the benefit attributable to community property.

FURTHER INFORMATION

Generally, UCRP benefits payable to members, survivors or
beneficiaries cannot be attached by creditors, nor can anyone
receiving benefits assign payments to others. UCRP benefits
are intended solely for the benefit of members and theirbeneficiaries and survivors.
There are some exceptions, however, in which the University
complies with the legal requirements. For example, the IRS may
attach retirement benefits to collect unpaid taxes, or a court mayorder certain benefits to be paid for child or spousal support.

To help you better understand UCRP benefits, UC Human
Resources provides personalized account information. You canfind current, comprehensive information about your UCRP
account as well as any other UC accounts you may have andmake certain online UCRP transactions by visiting UCnetand signing in to your account on UC Retirement At Your
Service (UCRAYS). UCnet also contains a link to the Fidelity
Retirement Services website so you may access your DefinedContribution Plan, Tax-Deferred 403(b) Plan and 457(b) Deferred
Compensation Plan balances.

QUALIFIED DOMESTIC RELATIONS ORDERS (QDRO)Annual reports containing audited financial statements areavailable on UCnet or from the UC Retirement Administration
Service Center.

If you divorce or end a registered domestic partnership, the court
may include Plan assets as community property to be divided
between you and your former spouse, registered domestic partner
or other dependent. In such cases, the domestic relations ordermust be approved, or qualified, by the Special Claims Unit of the
UC Retirement Administration Service Center as being incompliance with California community property law if applicable,
and with the Plan.
The University cooperates fully with you and your spouse,domestic partner or dependent, as well as your attorneys and thecourt in divorce cases. Both spouses, domestic partners and thecourt have the right to request information about the benefits you
earned while you were married and how those benefits arederived, as well as information about the options available to your
spouse, registered domestic partner or dependent. UCRS must be
joined as a party to the domestic relations proceeding if theproceeding will be heard in a California court, and once UCRS has
been joined, this information can be released. Prior to the joinder,or if the proceeding is taking place in another state, the request
for information must be accompanied by a signed release fromyou or a valid subpoena. All requests should include your name,Social Security number, address (or name and address of yourattorney), date of marriage/domestic partner registration andmarital/domestic partnership termination date.

Plan summaries are provided at hire and are also available
on UCnet (ucnet.universityofcalifornia.edu) or from the UC
Retirement Administration Service Center.
You may view the University of California Retirement Plan
document online (ucal.us/UCRSdocuments).
All notices or communications will be effective when sent to you by
first-class mail or conveyed electronically to your address of record.
The University and the Regents are entitled to rely exclusively upon
any notices, communications or instructions issued in writing orelectronically conveyed by UC Human Resources.

An Alternate Payee must choose monthly retirement income forthe allocated portion of your benefit attributable to 2016 Tier.
The Alternate Payee may begin receiving monthly payments atyour minimum retirement age of 55 or when you actually retire.

21

UCRP: Additional Information

ASSIGNMENT OF BENEFITSUCRP: Plan Definitions

Plan Definitions
Certain key terms are used throughout this plan summary thatare specific to UCRP and its benefit provisions. They are defined
as follows:

BREAK IN SERVICE
Leaving University employment, including any period on pay
status but without covered compensation, or any period off pay
status for four or more consecutive months. The following
periods do not constitute a break in service for UCRP membership as long as you return to pay status at the end of the period:• Approved leave of absence without pay• Temporary layoff (fewer than four months)• Pay that exceeds the full-time rate for the regular, normal
position to which the member is appointed• Pay that exceeds the base salary (X+X’) as negotiated underthe Health Sciences Compensation Plan
• Pay that exceeds the established base pay rates, including
non-elective deferred compensation, honoraria andconsulting fees
• Payments received as uniform allowance, unless included aspart of compensation for a regular and normal appointment• Pay that exceeds the IRC §401(a)(17) dollar limit; beginning
July 1, 2024, earnings limit is $345,000 ($505,000 for UCRP
Members with an original UCRP entry date prior to July 1,
1994, considered “grandfathered employees” by the IRS)

• Furlough• Payments received as a faculty recruitment allowance or
housing allowance• Period of right to recall and preference for reemployment• Pay from sources other than the University of California• Return to pay status the next working day after leaving
University employment• For those subject to the PEPRA maximum, pay that exceeds
the PEPRA maximum• Return to pay status after a military leave in accordance with
employees’ reemployment rights or• Pay prior to the effective date of UCRP membership• Pay earned while a Savings Choice participant• Return to pay status from a medical separation within thetime allowed under University policy
TIER BREAK IN SERVICE
Active UCRP members in the 1976 Tier or 2013 Tier who leave
UC employment and then return to a UCRP-eligible position
before the first day of the second month following the month themember left employment will remain in their tier and continue toaccrue benefits under the terms of that tier. For example, if amember leaves UC employment on July 5, 2024, and returns to a
UCRP-eligible appointment before Sept. 1, 2024, for purposes ofdetermining tier membership, the member will not have incurreda break in service. In this case, the rehired member will not be
eligible for the Retirement Choice Program.

DESIGNATED FACULTY
Faculty who are eligible for a five percent UC contribution
to the Pension Choice supplemental account (on all covered
compensation up to the annual IRC maximum); includes:• Ladder-rank faculty and equivalent titles (Professorial andEquivalent titles, which include Agronomists, Astronomers,
Clinical Professor of Dentistry (over 50%) and Supervisor of
Physical Education)• Professor in Residence series• Professor of Clinical (X) series• Acting full, associate and assistant professors

COVERED COMPENSATION (UCRP ELIGIBLE PAY)
The gross monthly pay that an active employee receives fora regular and normal appointment, including pay while onsabbatical or other approved leave of absence with pay. Not
included are:• Pay for overtime unless in the form of compensatory time off• Pay for correspondence courses, summer session, intersession
and for interquarter or vacation periods or University
extension courses, unless such employment constitutes partof an annual or indefinite appointment• Pay for a position that is not normally full time except if paid
on a salary or hourly rate basis
22• Lecturers/Senior Lecturers (full-time) with Security of
Employment or Potential Security of Employment (excluding
UC College of the Law, San Francisco (formerly Hastings)
Lecturers/Senior Lecturers)• Adjunct Professor series• Health Science Clinical Professor series
Eligible staff and other academic appointees (not listed above)
will receive a three percent UC contribution to the Pension
Choice supplemental account on all covered compensation
above the PEPRA maximum, up to the annual IRC maximum.

ELIGIBLE CHILD

An individual you have designated as your domestic partner by
one of four possible methods (any single method is sufficient):

The biological or adopted child or stepchild of a disabled ordeceased member, or the biological or adopted child of themember’s eligible domestic partner, who:

• Registration of your domestic partnership with the state ofCalifornia• Registration of your union, other than marriage, in anotherjurisdiction that is substantially equivalent to a California
domestic partnership• Enrollment of the domestic partner in UC-sponsoredhealth benefits and successful completion of the eligibility
verification process (note that enrolling your partner inbenefits that do not require eligibility verification, including
the Postdoctoral Scholars Benefit Program and the Graduate
Student Health Insurance Plan, will not establish your partner
as your survivor for UCRP benefits)• Sign and file a UC Declaration of Domestic Partnership(UBEN 250) with UC Retirement Administration Service
Center Records Management (P.O. Box 24570, Oakland, CA
94623-1570). Please note that both the UCRP member andthe domestic partner must sign the UBEN 250 form.
If both you and your domestic partner are employees eligible for
UCRP and your partnership has not been registered with thestate of California or another jurisdiction, you must separately
and independently designate each other as survivor for UCRP
benefits. Enrolling your partner in health benefits as your family
member and completing the eligibility verification process (seethird bullet above) designates your partner as your survivor. Your
partner must then submit a UBEN 250, signed by you and yourpartner, to designate you as survivor. Alternatively, you musteach submit a separate UBEN 250, signed by both partners.
Please note: While establishing your partnership for UCRP
benefits can be done at any time, it is very important to knowthat if you pass away before doing so, your partner cannot be
considered for UCRP survivor benefits. See Benefits for Domestic
Partners, available on UCnet.
Some UCRP survivor and death benefits, including preretirement
survivor benefits, require an established domestic partnership ofat least one year. However, there is no one-year partnership
requirement for benefits paid to your domestic partner if you die
while eligible to retire, as long as the partnership has been
established through one of the above methods.

UCRP: Plan Definitions

DOMESTIC PARTNER• Received at least 50 percent support from the member
for one year before the member’s death, disability date or
retirement, whichever occurs first; and• Is under age 18 or• Is under 22 and attending an educational institution full timeor
• Is disabled (The disability must have occurred while the childwas eligible based on age, as above)
The one-year support requirement does not apply to a member’schild as follows:
For a biological child:• If the child is born after the member’s disability date or• Is born within 10 months after the member’s death or• Is born less than one year before the member’s death or
disability or retirement date
For an adopted child, it does not apply if the adoption is finalized:• After the member’s disability date or• As of the date of the member’s death or disability or• Less than one year before the member’s death or disability or
retirement date
A stepchild or an eligible domestic partner’s biological or
adopted child must have been living with or in the care of
the member just before the member’s death or disability or
retirement.
An eligible child may qualify for preretirement survivor benefits.

ELIGIBLE DEPENDENT PARENTThe biological or adoptive mother or father of an active, disabledor retired member who received at least 50 percent support
from the member for the year just before the member’s death,disability or retirement.
An eligible dependent parent may qualify for preretirement
survivor benefits.

23

UCRP: Plan Definitions

Plan Definitions
ELIGIBLE DOMESTIC PARTNER

FINAL SALARY

The domestic partner (as defined above) of a deceased or
disabled active member. The partnership must have been
established at least one year before the member’s death or
disability date, and the partner must:

The monthly full-time equivalent compensation of an active
member at the time of death or disability date (or, if higher, on
the member’s separation date).

• Be responsible for the care of an eligible child (as definedon page 23) or• Be disabled (see pages 15–16) or• Have reached age 60
If the domestic partner is responsible for the care of an eligible
child who is the member’s biological child, the one-year
partnership requirement is waived as long as the child is eligible.
If the deceased employee was an active UCRP member andeligible to retire, see “Surviving Domestic Partner” definition,
on page 25.

ELIGIBLE SPOUSE
The widow or widower of a deceased or disabled active member.
The date of marriage must have been at least one year before
the member’s date of death, and the spouse must:• Be responsible for the care of an eligible child (as defined on
page 23)• Be disabled (see pages 15–16) or• Have reached age 60
If the spouse is responsible for the care of an eligible child
who is the member’s biological child, the one-year marriage
requirement is waived as long as the child is eligible.
If the deceased employee was an active UCRP member andeligible to retire, see “Surviving Spouse” definition, on page 25.

ELIGIBLE SURVIVOR
See “Eligible Child,” “Eligible Dependent Parent,” “Eligible
Domestic Partner” or “Eligible Spouse.”

24

If the member worked less than full time during the last 12
months of continuous employment, whether on an annual orpartial-year career appointment, the monthly full-time equivalent
compensation is adjusted based on the average percentage oftime on pay status over the last 36 months of continuous service.
Whether the member has worked full time is determined
without regard to sabbatical leave, extended sick leave, a
medically determinable physical or mental condition that causes
the member to apply for disability income or participation in an
approved rehabilitation program. Periods of approved leave ofabsence without pay are excluded from the 36 months; the time
before and after a leave is considered continuous.

HIGHEST AVERAGE PLAN COMPENSATION (HAPC)
A member’s average monthly full-time equivalent compensation,
including any administrative stipends, during the 36 continuous
months in which covered compensation was the highest. The
HAPC is subject to the PEPRA maximum (see definition below)
and/or the IRC annual maximum (see “Maximum Contribution
and Benefit Limitations” on page 17), as applicable.
Periods of approved leave of absence without pay are excluded
from the 36 months; the time before and after a leave, or before
and after a period of inactive membership, is considered
continuous. Service credit purchased for a leave period or forpast (refunded) service will be included in determining these
36 months.
For a member on a partial-year appointment, compensation
earned on a 9-, 10- or 11-month appointment is spread overa year to determine the member’s annual full-time equivalent
compensation, and compensation for each month within the
12-month period is treated as 1/12th of the total amount.
The HAPC attributable to service while on a partial-year career
appointment is based on the 36 continuous months that
produce the highest average covered compensation.

SURVIVING DOMESTIC PARTNER

Maximum set for pensionable earnings under the 2013
California Public Employees’ Pension Reform Act (PEPRA). Thismaximum also applies to other California public pension plans
and is reviewed annually and may be adjusted. For the Plan year
beginning in 2024, the maximum is $151,446 ($181,734 formembers not paying into Social Security).

The domestic partner (as defined on page 23) of a deceased or
disabled active UCRP member.

The PEPRA maximum applies to most UC employees who are
hired into an eligible faculty or career staff appointment on orafter July 1, 2016. However, employees are not subject to PEPRA
if they:• Were a UCRP member before July 1, 2016, or• Were employed in a safe harbor position prior to July 1, 2016,or• Were a “Classic Member” under CalPERS and are eligible for
UCRP/CalPERS reciprocity (see “Reciprocity” on page 7).
For the purpose of exemption from the PEPRA maximum,
you will need to provide self-certification of your eligibility
by submitting the UBEN 300 form to the UC Retirement
Administration Service Center; you may contact the UC
Retirement Administration Service Center at 800‑888‑8267.

UCRP: Plan Definitions

PEPRA PENSIONABLE EARNINGS MAXIMUM

The surviving domestic partner is eligible to receive the UCRP
contingent annuitant Option A benefit (see page 13) if themember was eligible to retire at the time of death.

SURVIVING SPOUSE
The widow or widower of a deceased or disabled active UCRP
member.
The surviving spouse is eligible to receive the UCRP contingent
annuitant Option A benefit (see page 13) if the member was
eligible to retire at the time of death.

25

UCRP: Information for Members with Service Credit from a Previous Period of Employment

Information for Members with Service Credit
from a Previous Period of Employment
If you worked at UC prior to July 1, 2016, you may have earned
UCRP service credit in the 1976 Tier, 2013 Tier and/or Modified
2013 Tier. If you are eligible for retirement benefits under morethan one tier, you will be subject to the provisions of multiple
tiers and your retirement benefits will be calculated taking thebenefits accrued under the multiple tiers into account. The
information below explains how the tiers work together.

RETIREMENT BENEFIT

Please note: Depending on the length of your break in UC
service, you may remain in the UCRP retirement tier in which
you were last a member, or you may be eligible for retirement
benefits in a new tier. If you leave UC employment as an active
UCRP member and return to work at UC in a UCRP-eligible
position before the first day of the second month following themonth you left employment, you will remain in your prior tier(and will continue to accrue benefits under the terms of thattier). For example, if you leave UC employment on July 5, 2024,
and return to a UCRP-eligible appointment before Sept. 1, 2024,
you will remain in your prior retirement tier. Alternatively, if you
leave UC employment on July 5, 2024, and return to an eligible
appointment on or after Sept. 1, 2024, you will be eligible forretirement benefits through the UC Retirement Choice Program,which includes Pension Choice (UCRP 2016 Tier) or Savings
Choice (unless you became a member of UCRP prior to 1994
or you are represented by a bargaining unit that does notparticipate in the UC Retirement Choice Program).

For example, if you have accrued a benefit under the 1976 Tierand another tier, your 1976 Tier benefit will be the greater of theamount determined under Calculation 1 or Calculation 2.

BENEFIT CALCULATION
If you accrue benefits under more than one tier or member
class, your total benefit will be the sum of the benefits you
earned under each tier and/or member class (although thecommencement dates may differ, as described above).

Example8
You retire at age 52 with 10 years of 1976 Tier service and2 years of 2016 Tier service.
Calculation 1
Your 1976 Tier age factor at your retirement date × years ofservice credit accrued under the 1976 Tier × a time-adjusted
HAPC. The HAPC is determined as of the date of your break inservice under the 1976 Tier, which is then increased by a COLA
on July 1 of each year, to your retirement date.
$5,000+ 300$5,300RETIREMENT DATE
You must choose a single retirement date for all portions of yourretirement benefit. If you retire before age 55 (the minimum age
for the 2013 and 2016 Tiers), you will receive only the benefit
accrued under the 1976 Tier and/or the Modified 2013 Tier, if
applicable, until you reach age 55. At that time, benefits accrued
under the 2013 and/or 2016 Tiers will begin automatically andyou will receive the combined amount (unless you chose alump sum cashout for the 1976 and/or Modified 2013 Tier, as
applicable).

average pay for last 36 months of 1976 Tier service
credit period
inactive COLA from end of 1976 Tier service credit
period to retirement date
HAPC

Calculation 2
Your 1976 Tier age factor at your retirement date × your yearsof service credit accrued under the 1976 Tier × your HAPC. Your
HAPC is based on your average compensation determined overthe 36 consecutive months of your entire career that yield thehighest average.
$5,100HAPC based on average pay for last 12 months of1976 Tier service credit period and 24 months of2016 Tier service credit period

The Calculation 1 HAPC is higher and results in a higher monthly
benefit, so you receive this benefit:
.0138
× 10
× [$5,300 – $133]$713*

1976 Tier age 52 factor
years of 1976 Tier service credit
HAPC – Social Security offset
1976 Tier monthly benefit* You will also receive a Temporary Social Security Supplement of $18 per month(.0138 x 10 x $133 = $18) payable until age 65

826

Benefit amounts are in the form of basic retirement income and are rounded
down to the nearest dollar.

Your benefit accrued under the 2016 Tier is determined under
the following formula: 2016 Tier age factor at the date your 2016
Tier benefit begins x your years of service credit accrued underthe 2016 Tier x your final HAPC. (The same formula applies tothe 2013 Tier benefit, if any.)
Example9Your HAPC is based on Calculation 2 above. Your career HAPC
is $5,100.
Your 2016 Tier benefit is calculated as follows:.0110
×2
× $5,100$112

2016 Tier age 55 factor
years of 2016 Tier service credit
HAPC
2016 Tier monthly benefit

You will receive an additional $112 per month at age 55.
If you accrued benefits under multiple tiers and as a Safety
member, you will have a blended calculation at retirement.
FORM OF PAYMENTYou are required to elect the same form of monthly retirement
income for all tiers’ benefits. For example, if you choose Option
A, it applies to all portions of your benefit.
Exceptions: You may choose to receive your benefit accrued
under the 1976 Tier (and Modified 2013 Tier, if applicable) as alump sum. You must elect a form of monthly retirement incomefor 2013 Tier and 2016 Tier benefits. The lump sum option is notavailable for 2013 and 2016 Tier benefits.
If you choose Option D for your 1976 Tier benefit, your 2016
Tier benefit will automatically be paid in the Option C form
because Option D is not available for the 2016 Tier (or 2013/
Modified 2013 Tier). These payment options have the same
payment structure.

9

CONTINGENT ANNUITANT
If you elect to provide a portion of your retirement for acontingent annuitant, you must select the same contingent
annuitant for both portions of your retirement benefit.
The contingent annuitant and the payment option you electcannot be changed, even if the contingent annuitant dies before
2016 Tier benefits begin.
COST OF LIVING ADJUSTMENTS
If you retire prior to age 55, the effective date for the first
COLA for the 2016 Tier benefit is the first July 1 that follows the
12-month anniversary of the commencement date for your 2016
Tier benefit.
ExampleYou retire June 28, 2024, at age 53 and begin receiving your1976 Tier benefit. You will begin receiving a COLA on that
benefit in July 2025. After your 55th birthday in April 2026,you
begin receiving your 2016 Tier benefit. You will begin receiving a
COLA on your 2016 Tier benefit in July 2027.

OTHER BENEFITS
Some benefits will be calculated using a weighted average oftier benefits. The weighted average is the ratio of tier service
credit over total service credit. For example, if you have 10 yearsof service under the 1976 Tier and five years under the 2016
Tier, the benefit would be calculated using two-thirds of the
1976 Tier benefit and one-third of the 2016 Tier benefit.
Benefits calculated using the weighted average include thedisability income benefit and pre-retirement survivor income, as
explained below.
DISABILITY INCOME BENEFIT
Disability income is calculated using the formula for each tierin which you have earned service credit, with all of your service
credit from all tiers used in each calculation. The weighted
average of the results determines your monthly benefit. If,
however, the disability income based only on 1976 Tier service
is greater, you will receive that amount.

Benefit amounts are in the form of basic retirement income and are rounded
down to the nearest dollar.

27

UCRP: Information for Members with Service Credit from a Previous Period of Employment

When you turn 55, you will begin receiving additional income
based on your 2013 and/or 2016 Tier service, since that is theearliest age at which you can start receiving these benefits.

UCRP: Information for Members with Service Credit from a Previous Period of Employment

Information for Members with Service Credit
from a Previous Period of Employment
ExampleYou become disabled at age 52 with 10 years of 1976 Tier
service and 2 years of 2016 Tier service. Your final monthly
salary as of your disability date: $5,200
Your disability income calculation is a weighted average ofresults based on total service credit under 1976 Tier formula(including $106.40 Social Security offset) and 2016 Tier formula,weighted by the ratio of tier service credit over total service
credit:Under the 1976 Tier formula, you are eligible for 40 percent
of your income (based on 12 years of total service credit)
× $5,200 – $106.40 = $1,973.60
Under the 2016 Tier formula, you are eligible for 25 percent
of your income (based on 12 years of total service credit)
× $5,200 = $1,300
The weighted average:$1,644.67 $1,973.60 x 10 ⁄ 12 of the 1976 Tier calculation+ 216.67 $1,300 x 2 ⁄ 12 of the 2016 Tier calculation$1,86110
Calculation for 1976 Tier-only benefit:
Under the 1976 Tier formula, you are eligible for 35 percent
of your income (based on 10 years of 1976 Tier service credit)
× ($5,200 – $106.40) = $1,713.60
Because $1,861 is greater than $1,713.60, $1,861 is your UCRP
disability income.

10

28

Benefit amounts are monthly income and, for purposes of these examples,are rounded down to the nearest dollar.

PRERETIREMENT SURVIVOR INCOME
This benefit is calculated as the weighted average of the 1976
Tier benefit (25 percent of final salary minus $106.40 Social
Security offset) and the 2016 Tier benefit (15 percent of final
salary).
ExampleYou die at age 48 with an Eligible ChildYour final salary as of date of death: $5,200
You have 10 years of 1976 Tier service and 2 years of 2016
Tier service
Calculations
1976 Tier formula:
25% × $5,200 = $1,300($1,300 – $106.40) = $1,193.60
2016 Tier formula:
15% × $5,200 = $780
The weighted average:$994.67+ $130$1,12410$1,193.60 × 10 ⁄ 12 of the 1976 Tier calculation$780 × 2 ⁄ 12 of the 2016 Tier calculation
Preretirement Survivor Income** For the first three months the benefit will be slightly higher because the$106.40 Social Security offset is not applied.

QDRO ALTERNATE PAYEE PROVISION
If you retire prior to age 55 and the 2013 and/or 2016 Tierportion of your benefit is considered community property undera QDRO, your Alternate Payee must wait until you reach age 55
to begin monthly payments of their allocated share of the 2013
and/or 2016 Tier portion of the benefit. The alternate payee’s
options for the 1976 Tier portion of the alternate payee’s benefit
are outlined in the Qualified Domestic Relations Order Fact Sheet,available online at ucal.us/QDROfactsheet.

Introduction......................................................................................................................................................................31
DC Plan Pretax AccountParticipation and Eligibility....................................................................................................................32
Collective Bargaining...........................................................................................................................................32
Eligibility for Savings Choice...................................................................................................................32
Second Choice Window to Switch from Savings Choice
to Pension Choice......................................................................................................................................................32
Eligibility for Supplemental DC Plan Account Under
Pension Choice...............................................................................................................................................................33
Eligibility for Safe Harbor Participants...................................................................................33
Contributions..................................................................................................................................................................33
Savings Choice Contributions...............................................................................................................33
Supplemental DC Plan Account Contributions
Under Pension Choice.......................................................................................................................................33
Covered Compensation for Savings Choiceand Pension Choice................................................................................................................................................34
PEPRA Maximum........................................................................................................................................................34
Safe Harbor Contributions.........................................................................................................................34
Leaves of Absence....................................................................................................................................................34
Termination of Employment....................................................................................................................34
Reappointment..............................................................................................................................................................35
Limitations on Compensation and Contributions................................................35
Investment of Contributions...................................................................................................................35
Vesting........................................................................................................................................................................................35
Retiree Health Service Credit............................................................................................................36
Partial-Year Career Appointments................................................................................................36
Military Leave...................................................................................................................................................................36
Leave Without Pay...................................................................................................................................................36
Sabbatical or Paid Leave.................................................................................................................................36
Extended Sick Leave..............................................................................................................................................36
Past Service.........................................................................................................................................................................36
Definition of Retirement for Savings Choice Participants.....................36

Defined Contribution Plan

Defined Contribution Plan:
Plan Summary

Distributions....................................................................................................................................................................37
Current UC Employees.....................................................................................................................................37
Former Employees....................................................................................................................................................37
Beneficiaries.......................................................................................................................................................................37
Taxes on Distributions.......................................................................................................................................38
Early Distribution Penalties......................................................................................................................38
Required Minimum Distributions....................................................................................................38
DC Plan After-Tax AccountContributions..................................................................................................................................................................39
Leaves of Absence....................................................................................................................................................39
Termination of Employment....................................................................................................................39
Reappointment..............................................................................................................................................................39
Contribution Amounts......................................................................................................................................39
Limitations on Contributions.................................................................................................................39
Distributions....................................................................................................................................................................40
Taxes on Distributions.......................................................................................................................................40
Early Distribution Penalties......................................................................................................................40
Required Minimum Distributions....................................................................................................40
Additional DC Plan Information....................................................................................................40
Investment Options...............................................................................................................................................40
Plan Administration and Fees................................................................................................................40
Rollovers: Into the Plan....................................................................................................................................41
Rollovers: From the Plan................................................................................................................................41
Account Activity..........................................................................................................................................................41
Claims Procedures....................................................................................................................................................42
Plan Changes.....................................................................................................................................................................42
Assignment of Benefits....................................................................................................................................42
Qualified Domestic Relations Orders (QDROs).....................................................42
Ineligible Accounts Retained by UC............................................................................................43
Employee Information Statement..............................................................................................43

29

30

The University of California offers eligible employees of the
University and its affiliate, UC College of the Law, San Francisco(formerly Hastings College of the Law), a tax-qualified retirement
plan to provide primary and supplemental retirement benefits.
The Plan is a defined contribution plan under §401(a) of theInternal Revenue Code (the IRC). Future benefits from the DefinedContribution Plan (DC Plan) comprise contributions made to the
DC Plan plus investment earnings. Employer contributions are
subject to vesting.
The designated Plan Administrator of the DC Plan is the Vice
President, Human Resources (VP-HR). The Office of the Chief
Investment Officer (OCIO) is responsible for monitoring a broad
range of professionally managed investment options available toPlan participants. Currently, Fidelity Retirement Services performs
recordkeeping duties. The relevant contact information is on theinside front cover. The Plan Administrator administers the DC Planfor the sole benefit of Plan participants and their beneficiaries.
Participants may want to consult a tax adviser or financial planner
before enrolling to make voluntary after-tax contributions.
Individual investment strategies should reflect the participant’s
personal savings goals and tolerance for financial risk. UC, theRegents, the Office of the Chief Investment Officer, UC Human
Resources and Fidelity Retirement Services are not liable for any
loss that may result from participants’ investment decisions. This
plan summary reflects the Plan provisions as in effect on July 1,
2024.

31

Defined Contribution Plan: Introduction

Introduction

DC Plan Pretax Account: Participation and Eligibility

DC Plan Pretax Account:
Participation and Eligibility
The DC Plan has separate accounts for pretax and after-tax
contributions. The Pretax Account holds employer contributions
and mandatory employee contributions from eligible membersof the following groups:• Savings Choice participants• Pension Choice participants who are eligible for the
supplemental DC Plan account• Safe Harbor participants• Summer Salary (paid prior to Nov. 1, 2016)• Members of the UCRP 1976 Tier with UCRP contributions
redirected to the DC Plan Pretax AccountIn accordance with IRC §414(h), mandatory contributions to thePretax Account are deducted from gross salary, and income
taxes are calculated on remaining pay, thus reducing theparticipant’s taxable income. Taxes on contributions and any
investment earnings are deferred (that is, postponed) until theparticipant withdraws the money.
The After-Tax Account contains voluntary employee contributions
that are deducted from a participant’s net income. Participants
may want to consult a tax adviser or financial planner before
enrolling as IRC maximum contribution limits apply.
The information in this section pertains primarily to the DC Plan
Pretax Account. References are made to the DC Plan After-Tax
Account when the same information applies.

COLLECTIVE BARGAINING
The provisions of the Plan are subject to collective bargaining forrepresented employees. Terms and conditions of employment
for exclusively represented employees are spelled out in thedetailed contracts that the university and the unions havenegotiated. If you are in a bargaining unit, you can find thecontract that applies to you on the Labor Relations website(ucal.us/laborrelations), or directly from the union.

PARTICIPATION IN THE DC PLAN PRETAX ACCOUNTIS MANDATORY FOR:
• Savings Choice participants• Pension Choice participants who are eligible for the
supplemental DC Plan account• Safe Harbor participants

ELIGIBILITY FOR SAVINGS CHOICE
You are eligible for a choice of primary retirement benefits(Savings Choice or Pension Choice) if you:
• Are hired on or after July 1, 2016, into an eligible faculty or
career staff appointment (at least 50 percent time on a fixedor variable basis for one year or longer)• Are rehired on or after July 1, 2016, into an eligible faculty or
career staff appointment after a break in UC service (between
one and two months), unless you were originally hired by UC
before July 1, 1994, or• Are hired in an ineligible position and become eligible forbenefits on or after July 1, 2016, either by completing anhours requirement or by obtaining an eligible faculty or career
staff appointment
Employees who are hired on or after July 1, 2016, in Safe Harbor
positions may become eligible for a choice of primary retirement
benefits after working 750 hours or 1,000 hours in a rolling,
continuous 12-month period, depending upon job classification.
(Employees in a Non-Senate Instructional Unit qualify for a choice ofprimary retirement benefits after working 750 hours in an eligible
position.) Eligibility is effective no later than the first of the monthfollowing the month in which 1,000 hours (or 750 hours) is reached.
Exceptions:
A University employee is not eligible for UC primary retirement
benefits if the employee:• Is at the University primarily to obtain education or training• Receives pay under a special compensation plan but receives
no covered compensation (see “Covered Compensation for
Savings Choice and Pension Choice” on page 34)• Is in a per diem, floater or casual restricted appointment• Is appointed as a Regents’ Professor or Regents’ Lecturer• Is an employee hired as a visiting appointee
SECOND CHOICE WINDOW TO SWITCH FROM SAVINGSCHOICE TO PENSION CHOICE
Savings Choice participants have a window of opportunity toswitch prospectively from Savings Choice to Pension Choice,and become members of the UC Retirement Plan (UCRP). The
second choice window for Savings Choice participants opens on
Jan. 1 of the fifth anniversary of the calendar year in which they
made their initial election.
A move from Savings Choice to Pension Choice is effective on
July 1 (the beginning of the plan year) following your election,
if your election is submitted electronically or postmarked on or
before May 31.
A switch from Savings Choice to Pension Choice is a change
in your primary retirement benefits going forward; it is not
retroactive. A switch to Pension Choice during your second
choice window means:32• Your Savings Choice account balance will remain yours.
Contributions (from you and UC) to your Savings Choiceaccount will stop on the date the change takes effect.
• The service credit you earned as a participant in Savings
Choice will count toward your retiree health benefits
and toward vesting in UCRP and in your Pension Choicesupplemental account (if you have one). You will begin earning
UCRP service credit toward the calculation of your pension
benefit on the date your switch to Pension Choice takes
effect.

Enrollment for Safe Harbor participants is automatic and begins
on the first day of an eligible appointment.
Mandatory employee contributions to the DC Plan Pretax
Account may come only from income paid through the UC
payroll system. Employees may also roll over money from other
employer-sponsored plans, including the taxable portion of alump sum or CAP distribution from the University of California
Retirement Plan (UCRP; see “Rollovers: Into the Plan” onpage 41).

• You will remain in the pension plan for the remainder ofyour career, even if you separate and return. Participants in
Pension Choice may not switch to Savings Choice.

Mandatory employee contributions to the Pretax Accountappear on employees’ W-2 forms in the box marked “Other”;
they are not reported as taxable income.

ELIGIBILITY FOR SUPPLEMENTAL DC PLAN ACCOUNTUNDER PENSION CHOICE

Mandatory employee contributions to the DC Plan Pretax
Account are deducted from gross salary (after certain pretax
deductions including medical plan premiums), and income taxes
are calculated on remaining pay (after all pretax deductions havebeen applied). Although mandatory pretax contributions reducetaxable income, they do not reduce any other salary-related
University benefits such as vacation or sick leave, life ordisability insurance benefits, or benefits payable from UCRP.

Participants eligible for a supplemental DC Plan Pretax Accountunder Pension Choice include:• Designated faculty, defined as those in the following
positions:– Ladder-rank faculty and equivalent titles (Professorial andEquivalent titles, which include Agronomists, Astronomers,
Clinical Professor of Dentistry (over 50%) and Supervisor of
Physical Education)– Professor in Residence series– Professor of Clinical (X) series– Acting full, associate and assistant professors– Lecturers/Senior Lecturers (full-time) with Security of
Employment or Potential Security of Employment (excluding
UC College of the Law, San Francisco (formerly Hastings)
Lecturers/Senior Lecturers)– Adjunct Professor series

Mandatory employee contributions may be affected by UC
guidelines about covered compensation (also referred to as“eligible pay;” see page 34) and by IRC limitations oncontributions (see page 35).
DC Plan participation may affect the income tax deductibility of
any contributions you make to a traditional Individual
Retirement Account (IRA). IRA contributions may still qualify fora full or partial tax deduction, depending on your adjusted grossincome and tax filing status. Participants concerned about the
impact of DC Plan contributions on deductible IRA contributions
should consult a tax adviser.

– Health Science Clinical Professor series• Eligible staff and other academic appointees with covered
compensation above the 2013 California Public Employees’
Pension Reform Act (PEPRA) maximum ($151,446 for the Plan
year beginning in 2024).
ELIGIBILITY FOR SAFE HARBOR PARTICIPANTS
These participants include part-time, seasonal, temporary UC
employees who are not eligible for primary retirement benefits
and whose wages are not subject to Social Security taxes. Also
included in this category are non-exempt UC student employees
who do not satisfy certain course-load requirements andresident aliens with F-1 and J-1 visa status. This category does
not include students whose wages from University employment
are exempt from taxation under the Federal Insurance
Contribution Act (FICA) and nonresident aliens with F-1 or J-1
visa status or whose wages are subject to foreign (i.e., theirhome country) taxes or contributions under a Social Security
totalization agreement.

SAVINGS CHOICE CONTRIBUTIONSParticipants in Savings Choice make mandatory pretax
contributions of 7 percent of covered compensation, up to theannual IRC maximum. UC contributes 8 percent of covered
compensation, up to the IRC maximum.

SUPPLEMENTAL DC PLAN ACCOUNT CONTRIBUTIONSUNDER PENSION CHOICE
For Pension Choice participants eligible for the DC Plan
supplemental account, the mandatory employee pretax
contribution is 7 percent on covered compensation over the
PEPRA maximum ($151,446 for the Plan year beginning in 2024),
up to the IRC maximum ($345,000 in 2024).

33

DC Plan Pretax Account: Contributions

Contributions

DC Plan Pretax Account: Contributions

Contributions

UC’s contributions to this benefit vary depending on job type.
For designated faculty (as defined on pages 32–33), UC
contributes 5 percent on all covered compensation up to the IRC
maximum. For other academic appointees and eligible staff with
pay above the PEPRA maximum, UC contributes 3 percent on
pay above the PEPRA maximum up to the IRC maximum.

$151,446 ($181,734 for members not paying into Social Security).
The PEPRA maximum applies to most people who are hired into aneligible faculty or career staff appointment on or after July 1, 2016,
and who participate in Pension Choice. In the DC Plan, the PEPRA
maximum plays a role in determining the amount of the employer
contribution toward the DC Plan supplemental account. However,the PEPRA maximum does not apply to participants in Savings
Choice.

COVERED COMPENSATION (ELIGIBLE PAY)
FOR SAVINGS CHOICE AND PENSION CHOICE
Contributions to the Savings Choice account or the
supplemental DC Plan account under Pension Choice are basedon covered compensation (or eligible pay). This is the grossmonthly pay that an active participant receives for a regular andnormal appointment, including pay while on sabbatical or otherapproved leave of absence with pay. Covered compensation
does not include:• Pay for overtime unless in the form of compensatory time off• Pay for correspondence courses, summer session, intersession
and for interquarter or vacation periods or University
extension courses, unless such employment constitutes partof an annual or indefinite appointment• Pay for a position that is not normally full time except if paid
on a salary or hourly rate basis• Pay that exceeds the full-time rate for the regular, normal
position to which the member is appointed• Pay that exceeds the base salary (X+X’) as negotiated underthe Health Sciences Compensation Plan
• Pay that exceeds the established base pay rates, including
non-elective deferred compensation, honoraria andconsulting fees
• Payments received as uniform allowance, unless included aspart of compensation for a regular and normal appointment• Pay that exceeds the IRC §401(a)(17) dollar limit; beginning
July 1, 2024, the earnings limit is $345,000

SAFE HARBOR CONTRIBUTIONS
Safe Harbor participants (part-time employees and non-exempt
students who are not eligible for the Retirement Choice Program
or membership in UCRP) make mandatory contributions of 7.5
percent to the DC Plan Pretax Account.
These contributions will stop for Safe Harbor participants who
become eligible for the University’s primary retirement benefit
options. Instead, mandatory pretax employee and employer
contributions will be made to the applicable primary retirement
benefit plan(s).
Money accumulated in the Pretax Account remains in the Plan
until the participant leaves employment and takes a distribution(see “Distributions: Former Employees,” on page 37).

LEAVES OF ABSENCE
Mandatory employee contributions to the Pretax Account stop
during a leave without pay and resume automatically upon
return to pay status in an eligible position.
For sabbatical leaves or administrative leaves with pay during
which employees earn less than 100 percent of regularcompensation, contributions continue based on compensation(including paid vacation or sick leave) earned during the leave.

• Pay from sources other than the University of California

Special rules may allow participants on military leave to “makeup” Pretax Account contributions that would have been credited
to their account during the military leave. Local Benefits Offices
can provide more information.

PEPRA MAXIMUMTERMINATION OF EMPLOYMENTFor those participants subject to the PEPRA limit, the maximum
covered compensation (or eligible pay) that counts toward UCRP
pension benefits is consistent with the maximum on pensionableearnings under PEPRA. This maximum also applies to many other
California public pension plans and is reviewed annually and may
be adjusted. For the Plan year beginning in 2024, the maximum is

If a participant leaves UC employment, contributions to the Planstop automatically. The options available for a participant’s
accumulations are described in “Distributions: Former
Employees” (see page 37).

• Payments received as a faculty recruitment allowance or
housing allowance34

REAPPOINTMENT
If a participant leaves employment or retires and is later rehired
into an eligible position, contributions to the Plan may resume
again, depending on the participant’s employment status. The
participant once again becomes subject to the rules governing
active Plan participation.
Safe Harbor participants who leave employment and who arelater rehired into another position eligible for Safe Harbor
participation will be re-enrolled automatically.

LIMITATIONS ON COMPENSATION AND CONTRIBUTIONS
Section 401(a)(17) of the IRC sets a dollar limit for annual
earnings on which contributions to the DC Plan may be made.
The earnings limit in 2024 is $345,000 for those who became
participants on July 1, 1994, or later.
To comply with the IRC §415(c) contribution limit ($69,000 in2024) and to protect the Plan’s qualified status with the IRS, thePlan Administrator annually monitors contributions made forparticipants. If, due to reasonable error, the 415(c) limit isexceeded for the year, a participant’s after-tax contributions,adjusted for income or losses, will be refunded to the extent
necessary to come within the limit. Although the earnings are
subject to ordinary income taxes for the year in which the excess
amount is refunded, they are not subject to the penalty taxes on
early distributions.
The earnings on excess contributions are not eligible for rollover.

INVESTMENT OF CONTRIBUTIONSParticipants choose the investment options in which they want
to invest their contributions. The investment options are
explained on page 40. If participants do not make a choice, theircontributions are automatically invested in the UC Pathway Fundwith a target date near the participant’s expected retirement
date.

DC Plan Pretax Account: Vesting

Vesting

To vest means to acquire certain rights in the benefits you
accrue. Once vested, you generally have a non-forfeitable rightto receive your Plan account balance subject to the plan’s
distribution rules.
Your own employee contributions (including your rollover
contributions) and related investment earnings on thoseamounts are immediately vested, regardless of account type.
UC contributions on summer salary paid into the Plan prior to
Nov. 1, 2016, are also immediately vested.

VESTING FOR SAVINGS CHOICE
If you remain actively employed, the employer portion of your
Savings Choice account will vest one year after your eligibility
date or, if earlier, on the date of your death.

VESTING FOR SUPPLEMENTAL DC ACCOUNTUNDER PENSION CHOICE
If you remain actively employed, the employer portion of yoursupplemental account under the Pension Choice option will
become vested when you have earned five years of service credit
through UCRP11 and/or through Savings Choice participation(before switching to Pension Choice) or, if earlier, on the date ofyour death. Savings Choice credit is applied towards vesting in
the Supplemental DC Account upon the effective date of thePension Choice election.

FORFEITURE OF NON-VESTED MONIES
Non-vested employer monies in a Savings Choice or
supplemental savings account will be forfeited to the Plan upon
the earlier of a distribution of all of your vested monies or after
you have a 12-month period of severance.

Participants may exchange (transfer) accumulations in the Planamong the investment options at any time. Direct exchanges
between certain investment options may be prohibited. See theFidelity Retirement Services website (netbenefits.com) for more
information.

11

See pages 7 and 11 of the UCRP SPD for information about UCRP vesting andRefund of Accumulations.

35

DC Plan Pretax Account: Retiree Health Savings Credit

Retiree Health Service Credit

Employees eligible for primary retirement benefits (such as
Pension Choice or Savings Choice) accrue retiree health service
credit, which is used to determine eligibility for retiree healthbenefits offered by UC. Retiree health benefits are not a vested
benefit. That means these benefits are not guaranteed and that
UC’s contributions to the cost of the benefits may change or bediscontinued at any time.

LEAVE WITHOUT PAY

Retiree health and welfare benefits are subject to collective
bargaining for current employees who are represented by a union.

During a sabbatical or paid leave, you earn retiree health service
credit in proportion to the percentage of full-time pay (i.e.,
covered compensation) you receive. For example, if you are on
sabbatical leave at two-thirds pay for one year, you receive
two-thirds of a year of retiree health service credit.

Retiree health service credit is earned whenever you receive
covered compensation for an eligible appointment once you
have enrolled in either Pension Choice or Savings Choice. The
maximum that you can earn for a year of full-time work is one
year of retiree health service credit. Part-time or variable-timework results in a proportionate amount of retiree health service
credit. For example, if you work 50 percent time for one year,
you receive one-half year of retiree health service credit.
Savings Choice participants do not have the option to purchaseretiree health service credit for any type of leave, or after forfeiting
retiree health service credit from previous appointments by taking
a full refund or rollover of their Savings Choice accumulations.

PARTIAL-YEAR CAREER APPOINTMENTS
If you work full time during a 9-, 10-, or 11-month partial-year
appointment, you earn one year of retiree health service credit foreach Plan year. If you work part time during a partial-year
appointment, you earn proportionate retiree health service credit.
For example, if you work 50 percent time during a partial-year
appointment, you earn one-half year of retiree health service credit.

MILITARY LEAVE
If you return to University service in accordance with yourreemployment rights following a military leave, you receive
retiree health service credit for the time spent in uniformed
service and for a period following uniformed service, provided
you return to work when the leave ends and satisfy otherapplicable requirements.
You earn retiree health service credit for military leave at thesame rate earned during the 12 months of continuous service
just before the leave. For example, if you earned three-fourths ofa year of retiree health service credit in the 12 months justbefore military leave, you will earn three-fourths of a year of
retiree health service credit for a year of military leave.
The Retirement Administration Service Center or your local
Benefits Offices can provide more information about
establishing retiree health service credit for military leaves.
36

You do not earn retiree health service credit during a leave
without pay.

SABBATICAL OR PAID LEAVEEXTENDED SICK LEAVE
You earn up to 80 percent of retiree health service credit forperiods of extended sick leave during which you receive
Workers’ Compensation.

PAST SERVICE
If you have accumulated retiree health service credit as a Savings
Choice participant and you leave UC, you can retain your retiree
health service credit as long as you maintain some Savings
Choice accumulations and an overall account balance of at least$2,000 in the DC Plan. If you later return to UC and restartparticipation in Savings Choice, you can build on the retiree
health service credit you accumulated during your initial periodof employment.
If you take a full refund or rollover of Savings Choice
accumulations before beginning retiree health benefits, or if you
trigger an automatic distribution by letting your DC Plan accountbalance fall below $2,000, you forfeit your accumulated retiree
health service credit (and it cannot be restored if you return toUC).

DEFINITION OF RETIREMENT FOR SAVINGS CHOICE
PARTICIPANTS
For Savings Choice participants, the date that retiree healthbenefits coverage begins is treated as the retirement date. Once
retiree health benefits coverage has begun, Savings Choiceparticipants can withdraw funds according to Plan rules without
affecting their continuing eligibility for retiree health benefits.
Savings Choice participants who begin receiving retiree healthbenefits are subject to all the rules for the re-employment of
retired employees.

Distribution timing rules vary depending on the participant’s
employment status.

directions, the participant’s vested accumulations will be paid
directly to the participant at the address of record.

Savings Choice Participants: Please see “Past Service” onpage 36 before making a decision about taking a distribution ofyour DC Plan Savings Choice accumulations. If you take a fullrefund or rollover of Savings Choice accumulations before
beginning retiree health benefits, or if you trigger an automatic
distribution by letting your DC Plan account balance fall below$2,000, you forfeit your accumulated retiree health service
credit.

All distributions are subject to Fidelity Retirement Services
and payroll deadlines. No distributions can be made until all
payroll activity is complete, which can take from 31 to 60 days.

CURRENT UC EMPLOYEESThe Plan permits DC Plan Pretax Account distributions tocurrent employees if they are 59½ or older. Pretax Accountdistributions are also permitted if you leave employment.
Current employees may take a distribution of money that theyrolled over into the DC Plan from another employer- sponsoredplan, including earnings on the amount rolled over (see“Rollovers: Into the Plan” on page 41).

FORMER EMPLOYEESFormer employees may take a distribution of the vested portionof their Pretax Account balance at any time. Participants who
leave University employment have the following payment
options for vested assets in the DC Plan:• Leave the assets in the Plan if the vested Plan balance,
including any After-Tax Account balance, totals at least$2,000. Although participants may no longer contribute, they
may transfer money among the investment fund options,subject to the transfer/exchange rules, and roll over money
into the Plan.
• Take a full or partial distribution (payable to the participant or
can be directly rolled over to a traditional IRA, Roth IRA or
employer-sponsored plan).
• Arrange for systematic withdrawals. This option enables theparticipant to receive regular, periodic distributions without
having to make a specific request for each one.

BENEFICIARIES
Participants should designate a beneficiary to receive theirassets in the DC Plan in the event of death. A participant may
not name one beneficiary to receive assets in the Pretax Accountand another beneficiary to receive any assets in the After-Tax
Account. Participants may, however, name more than one
beneficiary and specify the percentage of the total Plan balancethat each beneficiary is to receive. A beneficiary may be a
person, trust or organization.
Subject to restrictions on small accounts, beneficiaries may electto take their benefit as a lump sum or in periodic payments overa term that meets the Internal Revenue Code requirements on
minimum distributions. If a beneficiary fails to make an election,
the benefit will be distributed to the beneficiary in a lump sum
by the last day of the calendar year in which the fifth anniversaryof the participant’s death occurs.
Spousal beneficiaries also have the option to roll over the
taxable portion of money from the participant’s account into a
traditional IRA, a Roth IRA or to an employer plan that will
accept a rollover, either directly or within 60 days of receipt ofthe distribution. Non-spouse beneficiaries may elect a direct
rollover to an inherited traditional or Roth IRA.
If no beneficiary has been named, or if the beneficiary dies
before the participant, the DC Plan rules require that any
amount remaining be distributed to the participant’s survivors in
the following order of succession:• Surviving spouse or surviving domestic partner or, if none,• Surviving children, biological or adopted, on an equal-sharebasis (children of a deceased child share their parent’s benefit)
or, if none,• Surviving parents on an equal-share basis or, if none,

The following rules apply to distributions of small accounts after
the participant has terminated UC employment:• Brothers and sisters on an equal-share basis or, if none,• If the vested value of the participant’s accumulations is lessthan $2,000, but more than $1,000, and the participant
fails to provide distribution directions, the participant’s
vested accumulations will be rolled over to an IRA custodian
designated by the Plan Administrator in an accountmaintained for the participant.

A will or trust does not supersede a designation of beneficiary,
nor does either supersede the Plan’s “default” beneficiary rules(described above) that apply in the absence of a valid beneficiary
designation.

• If the vested value of the participant’s accumulations is$1,000 or less, and the participant fails to provide distribution• The participant’s estate

It is the participant’s responsibility to keep information on
beneficiaries, including addresses, up to date. The address ofrecord is binding for all purposes of the DC Plan.
37

DC Plan Pretax Account: Distributions

Distributions

DC Plan After-Tax Account: Distributions

Distributions

You can name or change your beneficiary information bycontacting Fidelity Retirement Services (866-682-7787 ornetbenefits.com).

Distributions to participants are reported annually on IRS Form
1099-R, which is sent in January following the calendar year inwhich the distribution was issued.

COMMUNITY PROPERTYMarried participants and registered domestic partners who
designate someone other than their spouse or partner as abeneficiary may need to consider the spouse’s or partner’scommunity property rights. For residents of a community
property state such as California, a designation of beneficiary
may be subject to challenge if the spouse or partner would
consequently receive less than the share of the benefit
attributable to community property.
Procedures established for UCRP are used to determine whether
a domestic partner is included in the order of succession above.
Generally, the procedures require that an individual must be
designated as a participant’s domestic partner by one of four
possible methods:• Registration of the domestic partnership with California’s
Secretary of State• Registration of a union, other than marriage, validly formed inanother jurisdiction, that is substantially equivalent to a
California domestic partnership or• Enrollment of the domestic partner in UC-sponsored healthbenefits and successful completion of the eligibility
verification process (note that enrolling your partner inbenefits that do not require eligibility verification, including
the Postdoctoral Scholars Benefit Program and the Graduate
Student Health Insurance Plan, will not establish your partner
as your survivor for UCRP benefits)• Filing of a UC Declaration of Domestic Partnership form
(UBEN 250) with the UCRP administration

EARLY DISTRIBUTION PENALTIESIn addition to being taxed as ordinary income, the taxable
portion of distributions taken before age 59½ (early
distributions) may be subject to nondeductible federal and state
penalty taxes — currently a 10 percent federal tax and a 2.5
percent California state tax, unless:• The distribution is made to a participant who leaves UC
employment during or after the year the participant reaches
age 55• The participant is permanently disabled under IRS rules, or dies
• The participant receives a series of substantially equal
distributions over the participant’s life/life expectancy (or the
lives/life expectancies of the participant’s beneficiaries)• The distribution does not exceed deductible medical expenses
for the taxable year
• The distribution is paid to an alternate payee under a QDRO• The distribution is made on account of certain tax levies or• The distribution is made on account of other exceptions
defined by the IRS
Early distribution penalties are not assessed when a distribution
is paid. Participants who are subject to the penalties are
responsible for reporting them to the IRS when they file theirincome tax returns.

If a member dies before filing a UC Declaration of Domestic
Partnership, only documentation from the first three methods
may be used to establish a domestic partnership.

REQUIRED MINIMUM DISTRIBUTIONSTAXES ON DISTRIBUTIONS• The year in which they leave University employment

A distribution from the DC Plan Pretax Account is generally
taxed as ordinary income in the year it is issued. Note, however,that there are specific federal tax withholding rules that apply to
all distributions from retirement savings and investment plans.
For more information about the tax treatment of Plan
distributions, read the special tax notice provided by Fidelity
Retirement Services before requesting a distribution. The tax
rules are quite complex; for this reason, participants consideringa distribution from the Plan are strongly encouraged to consult a
tax adviser.
Participants who choose to take a distribution are responsible forsatisfying the distribution rules and for any tax consequences.
38

Participants must begin receiving minimum distributions fromthe Plan by April 1 of the calendar year following the later of:• The year in which they reach age 73 (for individuals who turn72 on or after January 1, 2023)
Participants who do not receive minimum distributions by therequired dates, or who receive less than the minimum amountthe law requires, must pay a nondeductible 50 percent excise tax
on the difference between the amount that should have been
received and the amount received.
Required minimum distributions are not eligible for rollover.
Required minimum distributions are calculated in accordancewith U.S. Treasury regulations.

The information that follows pertains specifically to the
DC Plan After-Tax Account.
All employees of UC and UC College of the Law, San Francisco(formerly Hastings) — except students who normally work fewer
than 20 hours per week — are eligible to make voluntary
contributions to the After-Tax Account.
Contributions to the After-Tax Account may be made only
through payroll deduction and may only come from income
paid through the UC payroll system. Contributions are notpermitted from any other source.
Contributions to the After-Tax Account are deducted from yourpay after income taxes have been deducted. Taxes on theinvestment earnings only are deferred until you withdraw themoney.

LEAVES OF ABSENCE
Contributions to the After-Tax Account stop during a leave
without pay and resume automatically at the same rate upon
return to pay status, unless the participant cancels them.
For sabbatical leaves or administrative leaves with pay during
which employees earn less than 100 percent of regularcompensation, contributions continue in the same amount aselected before the leave. Because contributions remain the same
while compensation decreases, it is important for participants toreview their contribution amount before going on a paid leave.
Special rules may allow participants who return from military
leave to “make up” After-Tax Account contributions that would
have been credited to their account during the military leave.
Local Benefits Offices can provide more information.
During paid vacation or sick leave, contributions continue in thesame amount.

REAPPOINTMENT
If you leave UC employment and are later rehired into an eligible
position, you may begin contributing to the After-Tax Accountagain.

CONTRIBUTION AMOUNTS
The maximum amount participants may contribute annually to
the After-Tax Account is determined by the IRC §415(c) limit.
Generally, this amount is the lesser of:• 100 percent of the participant’s adjusted gross UC salary or• $69,000 (in 2024)
This limit applies to all annual additions as defined in IRC §415(c)including employer contributions to the DC Plan and mandatory
employee pretax contributions to the DC Plan. Note that
contributions to Savings Choice or Pension Choice supplemental
accounts may reduce the amount participants may contribute to
the DC Plan After-Tax Account.
Participants may contribute to the After-Tax Account over
12 months or consolidate contributions in as few pay periods as
desired. If you decide to consolidate contributions, however, you
are responsible for canceling them once you reach your maximum
annual contribution limit (see “Limitations on Compensation andContributions” on page 35). Neither the University nor UC
Human Resources is responsible for individual tax consequences
if a participant’s after-tax payroll deductions exceed the415(c) limit.

LIMITATIONS ON CONTRIBUTIONS
The limitations on contributions are described on page 35.

TERMINATION OF EMPLOYMENTThe options that are available to After-Tax Account participants
who leave UC employment are described in “Distributions” onpage 40.

39

DC Plan After-Tax Account: Contributions

DC Plan After-Tax AccountContributions

DC Plan: Distributions, Additional DC Plan Information

Distributions

Additional DC Plan Information

Participants may take a full or partial distribution of their moneyin the After-Tax Account at any time.

INVESTMENT OPTIONSRetiree and former employee participants have additional
options for their money in the DC Plan (see “Distributions:
Former Employees” on page 37).

TAXES ON DISTRIBUTIONS
The taxable portion of a distribution from the After-Tax Accountis taxed as ordinary income in the year the distribution is issued.
Participants may not take a distribution of contributions alone(the amount on which they have already paid taxes). Each
distribution must include earnings in the same proportion thatthe earnings bear to contributions in the account. Therefore,
unless the earnings are rolled over (or there is a net loss), all
distributions are partially taxable.
As previously discussed, specific federal tax-withholding rules
apply to all distributions from retirement savings plans. For more
information about the tax treatment of After-Tax Accountdistributions, read the special tax notice provided by Fidelity
Retirement Services before requesting a distribution. Participantsconsidering a distribution from the After-Tax Account are alsostrongly encouraged to consult a tax adviser.

EARLY DISTRIBUTION PENALTIESThe early distribution penalties for the Pretax Account as
described on page 38 also apply to the tax-deferred earnings
portion of the DC Plan After-Tax Account.

REQUIRED MINIMUM DISTRIBUTIONS
The minimum distribution rules are described on page 38.

Plan participants can choose from a broad range ofprofessionally managed investment options that are monitoredby the Office of the Chief Investment Officer of the Regents(OCIO) based on criteria established by the Regents. The UC
Retirement Savings Program (UC RSP) fund menu includes the
UC Pathway Funds, each of which adjusts its asset mix as thefund approaches its target date, plus additional investment
funds that represent a comprehensive range of asset classes
with different objectives and risk and return characteristics.
Most funds offered on the UC RSP fund menu are designed tohave lower expenses than many similar publicly traded mutual
funds. A complete description of each of these options isavailable on netbenefits.com.
Participants may also invest in mutual funds that are notincluded in the UC RSP fund menu by opening a self-directed
brokerage window account. Participants must agree to the terms
and conditions that govern the account, including an
acknowledgment of the risks involved and the special fees that
may apply.
Information about investment objectives, risks, changes andexpenses of all options is available, free of charge, from Fidelity
Retirement Services (netbenefits.com or 866-682-7787).

PLAN ADMINISTRATION AND FEESThe Vice President of Human Resources is the Plan
Administrator with responsibility for the day-to-day
management and operation of the Plan. The Office of the
Chief Investment Officer (OCIO) selects and monitors theinvestment options available under the Plan.
INVESTMENT MANAGEMENT FEES
Funds that are included in the UC RSP fund menu charge aninvestment management fee (i.e., expense ratio), which is netted
from the investment experience of the funds. There are no
front-end or deferred sales loads or other marketing expenses
charged by funds that are included in the UC RSP fund menu.
ADMINISTRATIVE FEES
A quarterly fee will be deducted from your account balance foradministrative services. The administrative services fee covers
expenses for recordkeeping services for your account(s),communications, financial education, internal UC staff support
for the Plan, and other non-investment services. If you havemore than one Retirement Savings Program account (forexample, a 403(b) Plan account and a DC Plan account), you will
be charged only one administrative services fee per quarter.

40

Participants may move eligible retirement funds from a previous
employer plan or an IRA to the DC Plan via a rollover. The DC
Plan accepts rollovers of pretax distributions from:• Other employer-sponsored plans, including 401(a), 401(k),403(b) and governmental 457(b) plans• Lump sum cashouts and CAP distributions from the UC
Retirement Plan
• Traditional IRAs
The DC Plan also accepts direct rollovers of after-tax amounts
from 401(a), 401(k) and 403(b) plans.
To roll over money directly from another employer-sponsoredplan to UC’s DC Plan, the participant must arrange to have theformer plan’s trustee or plan administrator write a check for the
distribution, payable to “Fidelity Investments Institutional
Operations Company, Inc. (FIIOC).” As long as the check is
payable directly to FIIOC (not to the participant), no taxes will
be withheld from the distribution, and the money will retain its
tax-deferred status.
If a participant takes a distribution from a former employer’splan, including UCRP, and the check is payable to the participant,the participant can also roll over the taxable portion of themoney into the DC Plan, as long as the rollover is made within 60
days after receiving the distribution. To roll over 100 percent of
the taxable portion of the distribution, the participant must
replace from personal savings or other sources an amount equal
to the taxes that were withheld when the distribution was issued.

ROLLOVERS: FROM THE PLAN
Virtually all DC Plan pretax distributions are eligible for direct
rollover (payable to a traditional IRA or another employer plan).
As long as the check for the distribution is payable directly tothe employer plan or IRA custodian, no taxes will be withheld
and the money will retain its tax-deferred status. If madepayable to the participant, distributions are subject tomandatory 20 percent federal tax withholding. Distributions
made to non-spouse beneficiaries are eligible for direct rollovers
to an inherited IRA.
DC Plan after-tax distributions are eligible for direct rollovers tocertain employer plans and conversion rollovers to a Roth IRA.12
Participants may also roll over an eligible DC Plan distributionthat has been paid to them, as long as the rollover to the IRA or
new plan occurs within 60 days of receipt of the distribution. A
12participant who wants to roll over 100 percent of the
distribution must replace from personal savings or other sources
an amount equal to the taxes that were withheld when the
distribution was issued. Any amount not rolled over will be taxed
as ordinary income for the year in which the distribution was
issued. It may also be subject to the early distribution penalties.
DC Plan distributions that are not eligible for direct rollover
include:• Required minimum distributions• Refunds of excess contributions (plus investment earnings)
to the After-Tax Account and• Systematic withdrawals

ACCOUNT ACTIVITY
To help participants better understand the Plan’s benefits andeffectively manage their accounts, Fidelity Retirement Services
provides personalized account information via two electronicsources.
• Participants who have Internet access can find current,
comprehensive information about their accounts and makecertain online Plan transactions by visiting the Fidelity
Retirement Services website (netbenefits.com).
• Participants can retrieve personal financial information about
their accounts and make transactions on the Fidelity
Retirement Services toll-free telephone line (866-682-7787).
Annual reports containing audited financial statements areavailable on the UC Office of the President website(ucop.edu/investment-office) or from the UC Retirement
Administration Service Center (see inside front cover).
Plan summaries are available on UCnet, the Fidelity Retirement
Services website or from your local Benefit Offices or the UC
Retirement Administration Service Center.
Participants may view the University of California DefinedContribution Plan document online (ucal.us/UCRSdocuments).
Participants should read the complete descriptions of theinvestment funds and accompanying Plan materials before
making any investment decisions.
All notices or communications to a participant or beneficiary
will be effective when sent by first-class mail or conveyed
electronically to the participant’s address of record. The
University and the Regents are entitled to rely exclusively upon
any notices, communications or instructions issued in writing orelectronically conveyed by UC Human Resources that are
believed to be genuine and to have been properly executed.

It is recommended that participants considering a conversion rollover to a RothIRA consult with a financial or tax adviser.

41

DC Plan: Additional DC Plan Information

ROLLOVERS: INTO THE PLAN

DC Plan: Additional DC Plan Information

Additional DC Plan Information

CLAIMS PROCEDURESASSIGNMENT OF BENEFITS

If Fidelity Retirement Services is unable to verify a claimant’s
right to a benefit within a short period of time, the claimant will
be notified of the need to forward a written request to theattention of the UC Contract Administrator, UC Human
Resources, P.O. Box 24570, Oakland, CA 94623-1570, who will
review the claim on behalf of the Plan Administrator. The
request should include all relevant information. Within 90 daysof receipt of the request, the contract administrator will approveor disapprove the claim. If the claim is denied, the contract
administrator will notify the claimant in writing, setting forth thespecific reasons for the denial and providing specific references
to the plan provisions on which the denial is based. The contract
administrator also will describe any additional material orinformation needed to perfect the claim and provide an
explanation of the DC Plan’s review procedures.

Generally, DC Plan benefits payable to participants, beneficiaries
or survivors cannot be attached by creditors, nor can anyone
receiving benefits assign payments to others. Plan benefits areintended solely for the benefit of participants and theirbeneficiaries and survivors.

If the claimant’s request is denied by the contract administrator,
the claimant may submit a written request for an independent
review by the Plan Administrator within 60 days of receiving thedenial. The request for an independent review should be
forwarded to the Plan Administrator, P.O. Box 24570, Oakland,
CA 94623-1570. The request should be accompanied by all
supporting documentation. The Plan Administrator may require
the claimant to submit additional documentation within 30 daysof a written request. The Plan Administrator will make a full
review of the request within 120 days of the date the appeal was
filed, unless the circumstances require a longer period. If thePlan Administrator upholds the contract administrator’s denial,
the Plan Administrator will notify the claimant. The decision of
the Plan Administrator will be final and conclusive on all persons.
If, after exhausting administrative appeal procedures, theclaimant still believes that a benefit has been improperly paid or
denied, the claimant has the right to initiate legal proceedings.
For service of process, send to The Regents of the Universityof California, Trustee of the Defined Contribution Plan, c/o
UC Legal — Office of the General Counsel, 1111 Franklin Street,
Oakland, CA 94706.

PLAN CHANGESThe Plan is subject to change and to independent audit to comply
with applicable federal and state statutes, IRC regulations andindustry standards. Participants are notified wheneversubstantive changes to the Plan occur. Although the Plan is
expected to continue indefinitely, the Regents reserve the rightto amend, improve or terminate the Plan at any time.

42

There are some legal exceptions. For example, the IRS may attach
retirement benefits to collect unpaid taxes, or a court may ordercertain benefits to be paid for child or spousal support.

QUALIFIED DOMESTIC RELATIONS ORDERS (QDROS)
A court may award Plan assets to the participant’s spouse orformer spouse or the participant’s dependent. This usually will
occur in connection with a divorce or legal separation. In suchcases, the domestic relations order must be approved, or
qualified, as being in compliance with state law and with the Plan.
Both spouses and the court have the right to request
information about the benefits earned by the participant during
the marital period and how those benefits are derived, as well as
information about the options available to non-participants.
To obtain a copy of the QDRO procedures, contact Fidelity
Retirement Services (netbenefits.com or 866-682-7787).
California law has established procedures for dividing property
in connection with the termination of a state-registereddomestic partnership. For more information, call Fidelity
Retirement Services.

INELIGIBLE ACCOUNTS RETAINED BY UC
The DC Plan does not permit a participant whose vested
accumulations have a value of less than $2,000 to remain in the
DC Plan after leaving UC employment. In order to facilitate theconversion to the new record keeper in July 2005, the UC
Residual Accounts group retained administration of ineligible
accounts of participants who terminated UC employment before
July 1, 2005, with small balances as follows:
Accumulations of less than $50 on June 30, 2005: For
participants who failed to provide timely distribution directions
or confirm their location, accumulations were forfeited as ofJune 30, 2005. The forfeited amounts will be used to defrayreasonable Plan expenses and to restore a participant’s
previously forfeited accumulations, plus interest, if theparticipant subsequently files a valid claim and provides
distribution directions.
Accumulations of $50 or more but less than $2,000 on June 30,
2005: For participants who failed to provide timely distribution
directions, the investment options in the participant’s accountwere liquidated as of June 30, 2005, and an account wasestablished on the participant’s behalf. The aggregated assets ofall such accounts were then invested in the UC Savings Fund inorder to preserve principal, and a proportionate share wasallocated to each account. The UC Residual Accounts group will
maintain such accounts until such time as the participant’s
location can be confirmed and distribution made. Each accountis credited with monthly interest at a fixed rate.
Accumulations of $1,000 or more as of Oct. 23, 2008:
The participant’s accumulations were transferred to an IRA
custodian or trustee selected by the Plan Administrator to beheld on behalf of the participant.
If you think you may be entitled to funds in an ineligible account,contact the UC Retirement Administration Service Center at
800-888-8267.

Participants in defined contribution plans are responsible fordetermining which, if any, investment vehicles best serve theirretirement objectives. The DC Plan assets are invested inaccordance with the participant’s instructions; if no instructions
are given, assets are invested in the UC Pathway Fund with atarget date near the participant’s expected retirement date.
Participants should periodically review whether their objectives
are being met, and if the objectives have changed, theparticipant should make the appropriate changes. Carefulplanning with a tax adviser or financial planner may help toachieve better supplemental retirement savings.
Neither the Regents, the Chief Investment Officer, the Plan
Administrator nor any officer or affiliated officer of the University
makes any recommendation to participants for building
supplemental retirement savings, and the various options
available for the investment of contributions should not be
construed in any respect as a judgment regarding the prudenceor advisability of such investments or as tax advice. Neither the
Regents, the Chief Investment Officer, the Plan Administrator
nor Fidelity Retirement Services bear any fiduciary liability for
any losses resulting from a participant’s investment instructions.
The Plan Administrator reserves the right to refuse to implement
any investment instruction from a participant that violates Planrules or IRC provisions.
All elections concerning contributions to the DC Plan are subject
to payroll transaction and fund valuation deadlines.
Neither the University, the Chief Investment Officer, the Plan
Administrator nor any officer or affiliated officer shall be
responsible in any way for the purpose, propriety or tax
treatment of any contribution or distribution (or any other action
or nonaction) taken pursuant to the direction of a Plan
participant, beneficiary, executor or administrator, or a court ofcompetent jurisdiction. Although the Regents, the Chief
Investment Officer, the Plan Administrator, and officers andaffiliated officers shall have no responsibility to give effect to adecision from anyone other than the Plan participant, beneficiary,
executor or administrator, they reserve the right to takeappropriate action, including termination and/or disbursementof a participant’s account, to protect the Plan from losing its
tax-advantaged status for any event that violates Plan rules orapplicable IRC provisions.

43

DC Plan: Employee Information Statement

Employee Information
Statement

44

Introduction......................................................................................................................................................................46
Eligibility..................................................................................................................................................................................48
Eligibility for Academic Appointees............................................................................................48
Contributions..................................................................................................................................................................48
Voluntary Pretax Contributions.........................................................................................................48
Voluntary Roth Contributions..............................................................................................................48
Academic Appointee Summer Salary Contributions......................................49
Leaves of Absence....................................................................................................................................................49
Termination of Employment....................................................................................................................49
Reappointment..............................................................................................................................................................49
Annual Contribution Limits.......................................................................................................................49
Excess Salary Reductions..............................................................................................................................50
Investment of Contributions...................................................................................................................50403(b) Plan Loan Program........................................................................................................................51
Loan Terms and Borrowing Limits..................................................................................................51
Interest Rates and Administrative Fees................................................................................51
Repayment............................................................................................................................................................................51

Tax-Deferred 403(b) Plan

Tax-Deferred 403(b) Plan:
Plan Summary

Distributions....................................................................................................................................................................52
Current UC Employees.....................................................................................................................................52
Former Employees....................................................................................................................................................53
Beneficiaries.......................................................................................................................................................................53
Taxes on Distributions.......................................................................................................................................54
Early Distribution Penalties......................................................................................................................54
Required Minimum Distributions....................................................................................................55
Additional 403(b) Plan Information........................................................................................55
Investment Options...............................................................................................................................................55
Plan Administration and Fees................................................................................................................55
Rollovers: Into the Plan....................................................................................................................................56
Rollovers: From the Plan................................................................................................................................56
Account Activity..........................................................................................................................................................57
Claims Procedures....................................................................................................................................................57
Plan Changes.....................................................................................................................................................................58
Assignment of Benefits....................................................................................................................................58
Qualified Domestic Relations Orders (QDROs).....................................................58
Ineligible Accounts Retained by UC............................................................................................58
Employee Information Statement..............................................................................................59

45

Introduction
The 403(b) Plan is a defined contribution plan described under§403(b) of the Internal Revenue Code (IRC) and offers both pretax
and Roth (after-tax) options. Future benefits from the 403(b) Plan
will be comprised of contributions made to the 403(b) Plan plus
investment earnings. Vesting on all 403(b) accumulations(contributions and any investment earnings) is immediate.
Employees who want to voluntarily participate in the 403(b) Plan
designate a portion of their UC salary to be contributed on a pretax
or Roth (after-tax) basis. Pretax contributions reduce theparticipant’s taxable income and taxes on contributions and any
earnings are deferred (that is, postponed) until the participant
withdraws the money. Roth contributions are made on an after-tax
basis and they do not reduce a participant’s taxable income. Rothcontributions and any earnings can be withdrawn by the participant
tax-free, given certain requirements are met.
Mandatory employee pretax and University contributions are madeto the 403(b) Plan for eligible academic appointees who earnsummer salary. Taxes on contributions and any investment earnings
are deferred (that is, postponed) until the participant withdraws
the money.
The designated Plan Administrator of the 403(b) Plan is the Vice
President, Human Resources (VP-HR). The Office of the Chief
Investment Officer (OCIO) is responsible for monitoring a broad
range of professionally managed investment options available toPlan participants.

46

Currently, Fidelity Retirement Services performs recordkeeping
duties. The relevant contact information is on the inside front cover.
The Plan Administrator administers the 403(b) Plan for the sole
benefit of Plan participants and their beneficiaries. Participation isvoluntary, with the exception of those contributions made on
academic summer salary, and should be based on the participant’s
financial objectives and resources. Individual investment strategies
should reflect the participant’s personal savings goals and tolerance
for financial risk. Participants may also want to consult a tax advisor
or financial planner before enrolling.
UC, the Regents, the OCIO, UC Human Resources and Fidelity
Retirement Services are not liable for any loss that may result fromparticipants’ investment decisions. This plan summary reflects Plan
provisions as in effect July 1, 2024.

47

403(b) Plan: Introduction

Introduction

403(b) Plan: Eligibility, Contributions

Eligibility

Contributions

All employees of UC and UC College of the Law, San Francisco(formerly Hastings)—except students who normally work fewer
than 20 hours per week—are eligible to participate in thevoluntary 403(b) Plan. An employee begins participation whencontributions are made to the 403(b) Plan. An employee orformer employee continues participation until all funds held on
the employee’s behalf are distributed.

All employee mandatory pretax and voluntary pretax and Roth(after-tax) salary deferral contributions to the 403(b) Plan comeonly from income paid through the UC payroll system. Employees
may also roll over money from other qualified employersponsored plans, including the taxable portion of a lump sum or
CAP distribution from the University of California Retirement Plan(see “Rollovers: Into the Plan” on page 56).

The provisions of the Plan are subject to collective bargaining forrepresented employees.

Contributions to the 403(b) Plan are reported annually on
employees’ W-2 forms. Mandatory and voluntary pretax
contributions reduce a participant’s taxable income and are
not included in income subject to taxation. Voluntary Rothcontributions do not reduce a participant’s taxable income and areincluded in income subject to taxation.

ELIGIBILITY FOR ACADEMIC APPOINTEES
Compensation that many academic appointees receive forsummer session teaching or research is not considered covered
compensation for determining primary retirement benefits.
Therefore, effective Nov. 1, 2016, the Plan contains a provision
to provide pretax employer and employee contributions to the403(b) Plan Pretax Account based on eligible summer salary.
Prior to Nov. 1, 2016, eligible summer salary contributions weremade to the DC Plan Pretax Account. Summer salary amounts inthe DC Plan Pretax Account as of Oct. 31, 2016, remain in the
DC Plan until distributed.
Eligible academic appointees are those who:
• Have academic year appointments;

Participants may voluntarily enroll in the pretax and Roth salarydeferral contribution option. Upon enrollment, participants
choose whether the contribution will be pretax or Roth andindicate either a flat dollar amount or a percentage of salarythat they will contribute through payroll (generally monthly
or biweekly) up to their maximum annual contribution
amount. Under the percentage method, contributions change
proportionately as the participant’s salary changes.
Contributions to the 403(b) Plan do not reduce any other salaryrelated University benefits such as leave accruals (vacation sickleave, or PTO), life or disability insurance benefits, or benefits
payable from UCRP.

• Are active members of UCRP or Savings Choice (or who are
eligible to become such members but have not yet begun
participating in a primary retirement benefit option); andVOLUNTARY PRETAX CONTRIBUTIONS• Earn eligible summer salary that is paid in accordance with
Academic Personnel Policy 600 and which is compensationthat is not covered compensation for calculating primary
retirement benefits.

Employee pretax salary deferral contributions are deducted fromgross salary (after certain pretax deductions including medical
plan premiums), and income taxes are calculated on remaining pay(after all pretax deductions have been applied).

Eligible summer salary includes compensation for:

Taxes on contributions and any investment earnings are deferred
until the participant withdraws the money.

• Summer teaching• Summer research• Summer administrative service (generally payments todepartment chairs, vice chairs, etc., for administrative duties
paid as “1/9ths”)
Salary paid for teaching University Extension courses is not
eligible for summer salary contributions.

Pretax contributions may not be converted to Roth contributions.

VOLUNTARY ROTH CONTRIBUTIONS
Employee Roth salary deferral contributions are deducted frompay after pretax deductions (including medical plan premiums)
and income tax deductions have been applied.
Contributions and any investment earnings are not subject totaxation upon withdrawal if the money is withdrawn at least five
tax years from when the first Roth contribution was made and if
the participant is at least age 59 ½, disabled, or passes away (readthe special tax notice provided by Fidelity Retirement Services formore information on netbenefits.com).
Roth contributions may not be converted to pretax contributions.

48

The total contribution rate under this provision is 7 percent ofeligible summer salary, which includes a mandatory employee
pretax contribution of 3.5 percent and a University contributionof 3.5 percent. Eligible summer salary is limited to ¼ the IRC
annual earnings limit (for 2024, this limit is $345,000 for
employees who became members as of July 1, 1994, or later).
The University contribution is funded by the same source thatprovides the academic appointee’s summer salary.

LEAVES OF ABSENCE
Contributions stop during a leave without pay and resume
automatically at the same rate upon return to pay status unlessthe participant cancels them (voluntary contributions only).
For sabbatical leaves or administrative leaves with pay during
which employees earn less than 100 percent of regularcompensation, voluntary contributions continue in the same flat
dollar amount or percentage as elected before the leave unlessthe participant makes a change. It is important for participants
to review their voluntary contributions before going on a paid
leave, particularly because contributions made as a flat dollar
amount will remain the same while compensation decreases.
Special rules may allow participants who return from military
leave to “make up” contributions that would have been credited
to their accounts during the military leave. Local Benefits Offices
can provide more information.
During paid vacation or sick leave, contributions continue
unchanged.

TERMINATION OF EMPLOYMENT
If a participant leaves UC employment, contributions stop
automatically. The payment options available for a participant’s
accumulations are described in “Distributions, Former Employees”(see page 53).

13

Or 100 percent of adjusted gross salary, if less. Adjusted gross salary for any
year is a participant’s gross University salary (including any shift differential,
summer or equivalent term salary, health science faculty income over thebase professorial salary, stipends and overtime), minus any required pretax
contributions to other retirement plans (for example, mandatory contributions
to the UC Defined Contribution Plan or to UCRP).

403(b) Plan: Contributions

ACADEMIC APPOINTEE SUMMER SALARYCONTRIBUTIONSREAPPOINTMENT
If a participant leaves UC employment or retires and is later
rehired into an eligible position, the participant may begin
contributing to the Plan again. Applicable mandatory summer
salary contributions will also resume.

ANNUAL CONTRIBUTION LIMITSThe IRC limits the amount participants may voluntarily contributeannually to tax-advantaged retirement plans and imposes
substantial penalties for violating contribution limits (see “Excess
Salary Reductions,” below. Limits are not applied to voluntary
pretax and Roth contributions separately.
For 2024, the 403(b) Plan contribution limits on voluntary pretax
salary deferral contributions are as follows:
Regular contribution limit: $23,0001
Participants who are age 50 or older any time during
the year: $30,50013
To contribute the maximum amount, participants should checkthe limits and adjust their contributions for each calendar year
accordingly.
SPECIAL CATCH-UP PROVISIONA special catch-up provision may allow participants to makeadditional salary deferral contributions if, as of the preceding
calendar year:• The participant has 15 or more full years of UC employment
and• The participant’s cumulative 403(b) Plan contributions (notincluding investment earnings) total less than $5,000 times
years of UC employment
The special catch-up provision allows additional contributions up
to a maximum of $3,000 per year. Total cumulative special
catch-up contributions under this provision are limited to$15,000. For participants age 50 and older, the first $3,000 of
any salary deferrals contributed each year in excess of theunder-age 50 limit is counted as a special catch-up contribution
until they are no longer eligible to make these contributions.
Participants who want to maximize 403(b) Plan contributions
should take advantage of the special catch-up provision as soon
as possible after completing 15 years of service.

49403(b) Plan: Contributions

Contributions

EXCESS SALARY REDUCTIONS
UC’s payroll system monitors 403(b) Plan voluntary pretax salarydeferral contributions: a participant’s deferral contributions willstop automatically if they reach the IRC deferral limit before
the end of the year. In limited circumstances, however, excess
salary reductions may be made—if, for example, a participant
works at more than one UC location during the year orcontributes to a 403(b) plan with another employer.
If participants think they have overcontributed but have notbeen contacted, or if they contribute to a tax-advantaged
plan with another employer during the year, they should callFidelity Retirement Services before the end of the year (orby March 1 of the following year) to request a refund.
The IRC requires that excess salary reductions in any calendar
year be refunded to the participant by April 15 of the following
year to avoid tax penalties. If the excess is refunded by April 15,
the excess is treated as ordinary income for the year in which
the salary reductions were made. The refund will also reflect
any earnings (or loss) generated by the excess salary reductions
during that year. The earnings must be reported on tax returns
for the year in which the refund is paid. For example, if aparticipant receives a refund of 2024 excess contributions in
2024, all amounts should be reported on tax returns for 2024.
If the participant receives the refund in 2025, however, theexcess contributions should be reported on 2024 tax returns
and any earnings on tax returns for 2025.
Refunds of excess contributions and earnings are not eligible
for rollover, nor are they subject to the penalty taxes on early
distributions (see “Early Distribution Penalties” on page 54).
If an excess contribution is not refunded by April 15, the excess
amount must remain in the Plan. The participant must stillreport the excess as ordinary income for the year in which thecontributions were made. In addition, the excess pretax
contribution amount will again be taxable as ordinary incomein the year in which the participant receives a distribution that
includes these funds. In other words, excess pretax
contributions that are not refunded by the April 15 deadline
are taxed twice. If the participant is under age 59½ when the
distribution occurs, the excess may be subject to the early
distribution penalty as well.
If a participant’s Roth account includes excess deferrals thatwere not distributed by the April 15 deadline, any distribution
from the account will be considered “nonqualified” (subject totaxes and penalties) under IRC rules. In this case, distributions
will be considered nonqualified until the total amount
distributed from the Roth account equals the total amount ofexcess deferrals and any associated investment income. Such
distributions would not be eligible for rollovers.

50

The IRC annual limit on pretax salary deferral contributions
applies across all 403(b)/401(k) plans to which a participant
contributes. The participant should consult a tax advisor on
the applicable limitations on contributions.

INVESTMENT OF CONTRIBUTIONSParticipants choose the investment options in which they want
to invest their contributions. The investment options are
explained on page 55.
Subject to payroll deadlines, participants may start, stop orchange the amount of their voluntary deferral contributions to
the Plan at any time on the Fidelity Retirement Services
website (netbenefits.com) or by calling Fidelity at 866-6827787. They also may redirect future 403(b) Plan voluntary or
mandatory contributions to one or more of the investment
options and/or exchange (transfer) accumulations in the Planamong the investment options at any time. Direct transfers
between certain investment options may be prohibited. See
the Fidelity Retirement Services website (netbenefits.com) for
more information.

403(b) Plan Loan Program policies and guidelines conform toapplicable IRC provisions and are subject to termination orchange by the Plan Administrator and various governing
authorities without prior notice.
Participants are eligible to borrow from their 403(b) Plan
accumulations (excluding amounts attributable to summer
salary contributions) if they are active UC employees with atleast $1,000 in the Plan.
403(b) Plan loans are secured by a promissory note. As each
repayment is credited back to the account, earnings accrue tothe participant’s accumulations.

If Retirement Savings
Program Vested
Balance is:Loan Limit is:$1,000 to $20,000$10,000, or 100% of 403(b) Plan balance(minus any current outstanding loanbalance and not including any balance
attributable to summer salarycontributions), if less than $10,000.

$20,000 & over

$50,00015, 50% of combined Retirement
Savings Program vested balance or
100% of 403(b) Plan balance (minus any
current outstanding loan balance andnot including any balance attributable tosummer salary contributions), whicheveris less.

Loan proceeds will be taken pro rata across the participant’s
fund holdings unless the participant contacts Fidelity at
866-682-7787 to specify the funds from which the loan
should be taken.
Important note—the decision to voluntarily participate in the403(b) Plan represents a conscious commitment to save forretirement years, and participants should borrow from the403(b) Plan only if it is absolutely necessary. Althoughparticipants are not penalized if they take a 403(b) Plan loan,
they do risk the loss of earning potential.

LOAN TERMS AND BORROWING LIMITS
Loans are generally granted for a term of five years or less(general-purpose loans). Loans taken to purchase a principal
residence can extend for a term of up to 15 years (principal
residence loans). Before taking a loan from the 403(b) Plan topurchase a principal residence, participants should consult a
tax advisor.14
Participants may have one general-purpose loan and one
principal-residence loan outstanding at any given time; they may
take one general-purpose loan and one principal-residence loan
during any 12-month period.
Depending on the combined Retirement Savings Program(Defined Contribution Plan, 403(b) Plan and 457(b) Plan) balance,
the participant may borrow from $1,000 to $50,000 as follows:

INTEREST RATES AND ADMINISTRATIVE FEESInterest rates for the Loan Program are determined quarterly,
based on the prime rate plus 1 percent. The interest rate is fixed
when the loan is granted and remains the same throughout theloan term.
A nonrefundable loan initiation fee of $35 will be deducted fromthe Plan balance at the end of the quarter in which the loan istaken. A $15 annual maintenance fee is deducted ($3.75 perquarter) for the life of the loan.

REPAYMENT
Participants generally repay their loans through automatic
after-tax payroll deduction. Monthly payments of principal
and interest are credited proportionately among the investment
options the participant has elected for future contributions.
The minimum monthly payment is $50, and the minimum
repayment term is 12 months. The maximum repayment term
is 60 months—or up to 180 months (15 years) if the loan isused to buy a principal residence.
Participants may prepay part or all of the outstanding loanbalance.

15

14Interest on 403(b) Plan loans is not deductible for income tax purposes;
therefore, a conventional home mortgage loan may be more advantageous forparticipants purchasing a principal residence.

403(b) Plan: 403(b) Plan Loan Program403(b) Plan Loan Program$50,000 is the maximum amount of principal that a participant may borrow or
have outstanding during any 12-month period. Further, the total amount of
all outstanding 403(b) Plan loans within a 12-month period will affect the
maximum amount that a participant may borrow during that period, even
if the participant has paid off all amounts owed. The $50,000 maximum isreduced by the total of any 403(b) loan balances outstanding during thepreceding 12 months.

51

403(b) Plan: 403(b) Plan Loan Program, Distributions

403(b) Plan Loan Program

Distributions

Participants with a 403(b) Plan loan who retire, leave UC
employment, go on approved leave without pay, go on furloughor temporary layoff, or otherwise have a change in pay statusthat affects their payroll deduction loan payments must arrange
for one of the following options with Fidelity Retirement
Services within 90 days of their last day on pay status:

Distribution rules vary depending on the participant’s
employment status.

• Make monthly payments

The IRC restricts 403(b) Plan in-service distributions ofaccumulations to current employees. In general, an employee
may not take a distribution of Plan accumulations, unless anin-service employee:• Make full payment in advance for the period the participant is
off pay status (not applicable to retirees) or• Repay the outstanding loan amount in fullFor employees returning from an approved leave without pay,
Fidelity Retirement Services will automatically reamortize theoutstanding loan balance, which may increase the amount of themonthly payment. Note: the total number of payments cannot
exceed the term maximum (60 months for general purpose
loans, 180 months for principal-residence loans).
If the loan defaults, the outstanding principal will be treated asa taxable distribution.
Please note: Fidelity Retirement Services cannot accept
personal checks. Payments must be made by electronic funds
transfer or by certified check.
If a participant dies before repaying a loan in full and theoutstanding loan principal is not paid within 90 days of theparticipant’s death, any outstanding principal will be treatedas a taxable distribution.

CURRENT UC EMPLOYEES• Has attained age 59½ or• Experienced a hardship or qualifies for a permitted withdrawal
as described in the next section
HARDSHIP DISTRIBUTIONS
Employees may be able to take a hardship distribution on
account of an immediate and heavy financial need. To be eligible
for a hardship distribution, an employee must have exhausted allother financial resources—including a distribution of any moneyin the DC Plan After-Tax Account. Note, if it has been less than
five years since your first Roth contribution, any investment
earnings may be taxable and subject to penalty taxes. The
employee must also certify that the distribution is being taken
for at least one of the following reasons:• Eligible medical expenses• The purchase of a principal residence (excluding mortgage
payments)

Generally, for any circumstance in which either a loan payment
or outstanding balance is not repaid when it is due or within 90
days, the loan will be considered in default. If the default is not
resolved within the 90-day period, the loan will be canceled andany outstanding principal will be treated as a taxable distribution
from the 403(b) Plan.

• Tuition payments and/or room and board for the next
12 months of post-secondary education for the employee, theemployee’s spouse, primary beneficiary, child or dependents

Borrowers who go on approved leave or military leave may electto suspend loan payments for a certain period, arrange tocontinue monthly payments (which may involve an interest rateadjustment), prepay their loan or pay off the loan. These
options should be elected before the leave is effective. Contact
Fidelity Retirement Services for more information.

• Loss or damage as a result of a natural disaster (for example,
earthquake, flood, fire, etc.)

Distributions of outstanding loan principal may be subject toordinary income taxes and may also be subject to federal andstate penalty taxes on early distributions (before age 59½).
Fidelity Retirement Services will issue a Form 1099-R reporting
the amount of the distribution. Taxes and penalties, if applicable,
should be reported when the participant files tax returns. A
participant will not be able to take additional loans from the403(b) Plan while a loan is in default.

52• Payments necessary to prevent foreclosure on the mortgageof, or eviction from, a principal residence• Burial and/or funeral expenses for a family member• Expenses and/or losses (including loss of income) due to adisaster declared by the Federal Emergency Management
Agency (FEMA) as eligible for individual assistance, provided
the employee’s principal residence or principal place of
employment was in the area designated by FEMA at the timeof the disaster, or• Other circumstances determined by the Internal Revenue
Service (IRS)
Participants who request a hardship distribution that exceeds$10,000 or who make multiple hardship distribution requests
within a 12-month period must provide proof of hardship toFidelity Retirement Services. IRS rules and/or Fidelity
Retirement Services may also require proof of hardship for
certain other hardship distribution requests.

A hardship distribution is generally taxed as ordinary income inthe year in which it is issued and may not be rolled over to an
IRA or any other retirement account. In accordance with IRS
regulations, Fidelity Retirement Services will withhold 10
percent for federal taxes and 1 percent for California state taxes(unless the participant elects no withholding). Early distribution
penalties may apply.
There are specific federal tax-withholding rules that apply to all
distributions from retirement and savings plans (see “Taxes onDistributions” on page 54).

OTHER PERMITTED WITHDRAWALS
Effective January 1, 2024, participants who are victims ofdomestic abuse may request a distribution up to the lesser of
50% of their account balance or $10,000 (indexed for inflation).

FORMER EMPLOYEESParticipants who leave UC employment have the following
options for assets in the 403(b) Plan:• Leave the assets in the Plan if the Plan balance totals at least$2,000, subject to required minimum distribution rules.
Although participants may no longer contribute, they may
transfer funds among the investment options, subject to thetransfer/exchange rules, and roll over money into the Plan.
• Take a full or partial distribution (payable to the participant or
directly rolled over to a traditional IRA, a Roth IRA or
employer-sponsored plan); see page 54 for information on
early distributions.
• Arrange for systematic withdrawals. This option enables theparticipant to receive regular, periodic distributions without
having to make a specific request for each one.

In general, participants cannot request a distribution until 31
days after their employment ends. However, the 31-day period iswaived for participants in the voluntary 403(b) Plan who are
age 59½ or older.
All distributions are subject to Fidelity Retirement Services
and payroll deadlines. No distributions can be made until all
payroll activity is complete, which can take from 31 to 60 days.
The following Plan rules apply to distributions of small accounts
after the participant has terminated UC employment:
If the value of the participant’s accumulations is less than
$2,000, but more than $1,000, and the participant fails toprovide distribution directions, the participant’s accumulations
will be rolled over to an IRA custodian designated by the Plan
Administrator in an account maintained for the participant.
If the value of the participant’s accumulations is $1,000 or less,and the participant fails to provide distribution directions,the participant’s accumulations shall be paid directly to theparticipant at the address of record.

BENEFICIARIES
Participants should designate a beneficiary to receive theiraccumulations in the 403(b) Plan in the event of their death.
Participants may name more than one beneficiary and specify
the percentage of the Plan balance that each beneficiary is toreceive. A beneficiary may be a person, trust or organization.
Subject to restrictions on small accounts, a beneficiary may electto take the benefit as a lump sum or in periodic payments over aterm that meets the IRC requirements on minimum distributions.
If a beneficiary is a person and fails to make an election, thebenefit will be distributed to the beneficiary in a lump sum by thelast day of the calendar year in which the tenth anniversary of theparticipant’s death occurs.
A deceased participant’s beneficiary (the participant’s beneficiary)
may also designate a beneficiary (beneficiary’s beneficiary) toreceive the balance in the deceased participant’s account if theparticipant’s beneficiary dies before taking a total distribution.
The beneficiary’s beneficiary must decide how they want money
to be distributed within nine months of the death of theparticipant’s beneficiary. You may wish to speak with a tax advisor
for more information on your options.

If the participant’s assets are less than $2,000, the participantmust take a distribution or roll the funds over to an IRA or
another employer-sponsored plan.

53403(b) Plan: Distributions

For hardship distributions made on or before December 31,
2023, qualified distributions will include only the participant’s
voluntary 403(b) Plan contributions. (Exception—contributions
rolled over into the 403(b) Plan from a former employer plan
may also be included if necessary to satisfy the request.) Any
earnings on the contributions must remain in the Plan.
Beginning January 1, 2024, hardship distributions may be
withdrawn from all voluntary 403(b) plan accumulations(contributions and any investment earnings).

403(b) Plan: Distributions

Distributions

If no beneficiary has been named, or if the beneficiary dies
before the participant, the 403(b) Plan “default” beneficiary
designation rules require that any amount remaining be
distributed to the participant’s survivors in the following orderof succession:• Filing of a UC Declaration of Domestic Partnership form (UBEN
250) and two pieces of evidence of financial interdependencewith the UC Retirement Administration Service Center.

• Surviving spouse or surviving domestic partner or, if none,

If a member dies before filing a UC Declaration of Domestic
Partnership, only documents from the first three methods may
be used to establish a domestic partnership.

• Surviving children, biological or adopted, on an equal-sharebasis (children of a deceased child share their parent’s benefit)
or, if none,

TAXES ON DISTRIBUTIONS• Surviving parents on an equal-share basis or, if none,• Brothers and sisters on an equal-share basis or, if none,• The participant’s estate
A will or trust does not supersede a designation of beneficiary,
nor does either supersede the Plan’s “default” beneficiaryrules (described above) that apply in the absence of a valid
beneficiary designation.
It is the participant’s responsibility to keep information on
beneficiaries, including addresses, up to date. You can name orchange your beneficiary information by contacting Fidelity
Retirement Services (netbenefits.com or 866-682-7787). The
address of record is binding for all purposes of the 403(b) Plan.
COMMUNITY PROPERTYMarried participants and registered domestic partners who
designate someone other than their spouse or partner asa beneficiary may need to consider the spouse’s or partner’scommunity property rights. For residents of a community
property state such as California, a designation of beneficiary
may be subject to challenge if the spouse or partner would
consequently receive less than the share of the benefit
attributable to community property.
Procedures established for the University of California
Retirement Plan (UCRP) are used to determine whether adomestic partner is included in the order of succession above.
Generally, the procedures require that an individual must be
designated as a participant’s domestic partner by one of four
possible methods:• Registration of the domestic partnership with California’s
Secretary of State• Registration of a union, other than marriage, validly formed inanother jurisdiction, that is substantially equivalent to a
California domestic partnership or• Enrollment of the domestic partner in UC-sponsored healthbenefits and successful completion of the eligibility
verification process (note that enrolling your partner inbenefits that do not require eligibility verification, including
the Postdoctoral Scholars Benefit Program and the Graduate
Student Health Insurance Plan, will not establish your partner
as your survivor for UCRP benefits)
54

A distribution of pretax accumulations and investment
earnings on a Roth account that do not qualify for a nontaxable distribution are generally taxed as ordinary income inthe year it is issued. For more information about the tax
treatment of Plan distributions, read the special tax noticeprovided by Fidelity Retirement Services on netbenefits.com
before requesting a distribution. The tax rules are quite
complex; for these reasons, participants considering a
distribution from the Plan are strongly encouraged to consult a
tax advisor.
Participants who choose to take a distribution are responsible forsatisfying the distribution rules and for any tax consequences.
Distributions to participants are reported annually on IRS Form
1099R, which are sent in January following the calendar year inwhich the distribution was issued.

EARLY DISTRIBUTION PENALTIESIn addition to being taxed as ordinary income, distributions
taken before age 59½ (early distributions) may be subject tonondeductible federal and state penalty taxes—currently a 10
percent federal tax and a 2.5 percent California state tax, unless:• The distribution is made to a participant who leaves UC
employment during or after the year the participant reaches
age 55• The participant is permanently disabled under IRS rules ordies• The participant receives a series of substantially equal
distributions over the participant’s life/life expectancy (or the
lives/life expectancies of the participant’s beneficiaries)• The distribution does not exceed deductible medical expenses
for the taxable year
• The distribution is paid to an alternate payee under a QDRO• The distribution is made on account of certain tax levies or• The distribution is made on account of other exceptions
defined by the IRS

Early distribution penalties are not assessed when a distribution
is paid. Participants who are subject to the penalties are
responsible for reporting them to the IRS when they file theirincome tax returns.

REQUIRED MINIMUM DISTRIBUTIONSParticipants must begin receiving minimum distributions fromthe Plan by April 1 of the calendar year following the later of:• The year in which they leave University employment• The year in which they reach age 73 (for individuals who turn72 on or after January 1, 2023)
Participants who do not receive minimum distributions by therequired dates, or who receive less than the minimum amountthe law requires, must pay a nondeductible 25 percent excise tax
on the difference between the amount that should have been
received and the amount received.
Required minimum distributions are not eligible for rollover.
Required minimum distributions are calculated in accordancewith U.S. Treasury regulations. Effective January 1, 2024, aparticipant’s Roth account balance is excluded from the required
minimum distribution calculation.

INVESTMENT OPTIONS
Plan participants can choose from a broad range ofprofessionally managed investment options that are monitoredby the Office of the Chief Investment Officer of the Regents(OCIO) based on criteria established by the Regents. The UC
Retirement Savings Program (UC RSP) fund menu includes the
UC Pathway Funds, each of which adjusts its asset mix as thefund approaches its target date, plus additional investment
funds that represent a comprehensive range of asset classes
with different objectives and risk and return characteristics.
Most funds offered on the UC RSP fund menu are designed tohave lower expenses than many similar publicly traded mutual
funds. A complete description of each of these options isavailable on netbenefits.com.
Participants may also invest in mutual funds that are not includedin the UC RSP fund menu by opening a self-directed brokeragewindow account. Participants must agree to the terms andconditions that govern the account, including an
acknowledgement of the risks involved and the special fees that
may apply.
Information about investment objectives, risks, changes andexpenses of all options is available, free of charge, from Fidelity
Retirement Services (netbenefits.com or 866-682-7787).

PLAN ADMINISTRATION AND FEESThe Vice President of Human Resources is the Plan
Administrator with responsibility for the day-to-day
management and operation of the Plan. The Office of the Chief
Investment Officer (OCIO) selects and monitors the investment
options available under the Plan.
INVESTMENT MANAGEMENT FEES
Funds that are included in the UC RSP fund menu charge aninvestment management fee (i.e., expense ratio), which is netted
from the investment experience of the funds. There are no
front-end or deferred sales loads or other marketing expenses
charged by funds that are included in the UC RSP fund menu.
ADMINISTRATIVE FEES
Effective June 1, 2017, a quarterly fee will be deducted from youraccount balance for administrative services. The administrative
services fee covers expenses for recordkeeping services for youraccount(s), communications, financial education, internal UC
staff support for the Plan, and other non-investment services. If
you have more than one Retirement Savings Program account(for example, a 403(b) Plan account and a DC Plan account), youwill be charged only one administrative services fee per quarter.

55

403(b) Plan: Additional 403(b) Plan Information

Additional 403(b)Plan Information

403(b) Plan: Additional 403(b) Plan Information

Additional 403(b)Plan Information
LOAN FEES
Fidelity charges a $35.00 fee for the initiation of a plan loan and$15.00 per year ($3.75 charged quarterly) for the ongoingadministration of an outstanding loan. The fees paid byparticipants for the origination of a plan loan or for the ongoingadministration of an outstanding loan will be deposited to a Plan
Expense Account and used by UC to offset the recordkeeping
fees charged by Fidelity Retirement Services.

ROLLOVERS: INTO THE PLAN
Participants may move eligible retirement funds from a previous
employer plan or an IRA to the 403(b) Plan via a rollover. The403(b) Plan accepts rollovers of distributions from:• Other employer-sponsored plans, including 401(a), 401(k),403(b) and governmental 457(b) Plans and/or• Lump sum cashouts and CAP distributions from the UC
Retirement Plan

participant must replace, from personal savings or other sources,
an amount equal to the taxes that were withheld when the
distribution was issued.

ROLLOVERS: FROM THE PLAN
All 403(b) Plan distributions except those listed below are eligiblefor direct rollover (distribution made payable to a traditional IRA,a Roth IRA or another employer plan). As long as the check forthe distribution is payable directly to the plan, no taxes should
be withheld and the funds will retain tax-deferred status. If a
direct rollover is to a Roth IRA, the pretax portion of the rollover
will be reported as taxable income in the year of distribution.6 If
made payable to the participant, taxable distributions are
subject to mandatory 20 percent federal tax withholding .If a
direct rollover is to a Roth IRA, the period of participation in the
UC 403(b) Roth will not carry over. However, the period ofparticipation may carry over if rolled from the UC 403(b) intoanother designated Roth plan.

• Traditional IRAs
The Plan also accepts direct rollovers of after-tax amounts fromother 403(b) plans, 401(a) plans (including UCRP) and 401(k)plans.
To roll over money directly from another employer-sponsoredplan to UC’s 403(b) Plan, the participant must arrange to havethe plan’s custodian or plan administrator write a check forthe distribution, payable to “Fidelity Investments Institutional
Operations Company, Inc. (FIIOC).” As long as the check is
payable directly to FIIOC (not to the participant), no taxes
should be withheld from the distribution, and the pretax funds
will retain their tax-deferred status. For direct rollovers into theplan from a designated Roth plan (which does not include RothIRA rollovers), the period of participation from the other plancan count toward the five-year qualification period when
distributed.
Employees who are eligible to participate in the 403(b) Plan may
execute a rollover (and become Plan participants) even if they
have not yet begun contributing to the Plan through payroll
deductions.
Former employees who did not participate in the 403(b) Plan are
not eligible to roll over funds into the Plan, except for eligible
distributions from UCRP of $2,000 or more.
If a participant takes a distribution from a former employer’splan, including UCRP, and the check is payable to the participant,the participant can also roll over the taxable portion of themoney into the 403(b) Plan, as long as the rollover is madewithin 60 days after receiving the distribution. To roll over 100
percent of the taxable portion of the distribution, the56

Participants may also roll over an eligible 403(b) Plan distribution
consisting of pretax funds that has been paid to them, as longas the rollover to the IRA or new plan occurs within 60 days ofreceipt of the distribution. A participant who wants to roll over
100 percent of the distribution must replace, from personalsavings or other sources, an amount equal to the taxes that were
withheld when the distribution was issued. Any amount notrolled over will be taxed as ordinary income for the year in which
the distribution was issued. It may also be subject to the early
distribution penalties.
403(b) Plan distributions that are not eligible for rollover include:• Required minimum distributions• Refunds of excess contributions (plus earnings)• Systematic withdrawals and• Hardship distributions
Distributions made to non-spouse beneficiaries are eligible only
for a direct rollover and only to an inherited IRA.
For more information about the tax treatment of rollovers, readthe special tax notice available from Fidelity Retirement Services
on netbenefits.com.

16

It is recommended that participants considering a rollover to a Roth IRA
consult with a financial or tax advisor.

CLAIMS PROCEDURES

To help participants better understand the Plan’s benefits andeffectively manage their accounts, Fidelity Retirement Services,on behalf of UC Human Resources, provides personalizedaccount information via two electronic sources.

If Fidelity Retirement Services is unable to verify a claimant’s
right to a benefit within a short period of time, the claimant will
be notified of the need to forward a written request to theattention of the UC Contract Administrator, UC Human
Resources, P.O. Box 24570, Oakland, CA 94623-1570, who will
review the claim on behalf of the Plan Administrator. The
request should include all relevant information. Within 90 daysof receipt of the request, the contract administrator will approveor disapprove the claim. If the claim is denied, the contract
administrator will notify the claimant in writing, setting forth thespecific reasons for the denial and providing specific references
to the plan provisions on which the denial is based. The contract
administrator also will describe any additional material orinformation needed to perfect the claim and provide an
explanation of the 403(b) Plan’s review procedures.

• Participants who have Internet access can find current,
comprehensive information about their accounts and makecertain online Plan transactions by visiting the Fidelity
Retirement Services website (netbenefits.com).
• Participants can retrieve personal financial information
about their accounts and make transactions on the Fidelity
Retirement Services toll-free telephone line (866-682-7787).
Annual reports containing audited financial statements areavailable on the UC Office of the President website(ucal.us/ucrsreports) or from the UC Retirement Administration
Service Center.
Plan summaries are available on UCnet, myUCretirement.com
or from your local Benefits Office or the UC Retirement
Administration Service Center.
Participants may view the UC 403(b) Plan document online(ucal.us/UCRSdocuments).
Participants should read the complete descriptions of theinvestment funds and accompanying Plan materials before
making any investment decisions.
All notices or communications to a participant or a beneficiary
will be effective when sent by first-class mail or conveyed
electronically to the participant’s address of record. The
University and the Regents are entitled to rely exclusively
upon any notices, communications or instructions issued inwriting or electronically conveyed by UC Human Resources thatare believed to be genuine and to have been properly executed.

If the claimant’s request is denied by the contract administrator,
the claimant may submit a written request for an independent
review by the Plan Administrator within 60 days of receiving
the denial. The request for an independent review should be
forwarded to the Plan Administrator, P.O. Box 24570, Oakland, CA
94623-1570. The request should be accompanied by all supporting
documentation. The Plan Administrator may require theclaimant to submit additional documentation within 30 days of awritten request. The Plan Administrator will make a full review of
the request within 120 days of the date the appeal was filed,unless the circumstances require a longer period. If the Plan
Administrator upholds the contract administrator’s denial, thePlan Administrator will notify the claimant. The decision of thePlan Administrator will be final and conclusive on all persons.
If, after exhausting administrative appeal procedures, theclaimant still believes that a benefit has been improperly paid or
denied, the claimant has the right to initiate legal proceedings.
For service of process, send to:
The Regents of the University of California
Trustee of the UC 403(b) Plan
c/o UC Legal—Office of the General Counsel
1111 Franklin Street
Oakland, CA 94706

57

403(b) Plan: Additional 403(b) Plan Information

ACCOUNT ACTIVITY

403(b) Plan: Additional 403(b) Plan Information

Additional 403(b)Plan Information
PLAN CHANGESINELIGIBLE ACCOUNTS RETAINED BY UC

The Plan is subject to change and to independent audit to comply
with applicable federal and state statutes, IRC regulations andindustry standards. Participants are notified wheneversubstantive changes to the Plan occur. Although the Plan is
expected to continue indefinitely, the Regents reserve the rightto amend or terminate the Plan at any time.

The 403(b) Plan does not permit a participant whose vested
accumulations have a value of less than $2,000 to remain in the403(b) Plan after leaving UC employment. In order to facilitate
the conversion to the new record keeper in July 2005, the UC
Residual Accounts group retained administration of ineligible
accounts of participants who terminated UC employment
before July 1, 2005, with small balances as follows:

ASSIGNMENT OF BENEFITS
Generally, 403(b) Plan benefits payable to participants,
beneficiaries or survivors cannot be attached by creditors,
nor can anyone receiving benefits assign payments to others.
Plan benefits are intended solely for the benefit of participants
and their beneficiaries and survivors.
There are some exceptions. For example, the IRS may attach
retirement benefits to collect unpaid taxes, or a court may ordercertain benefits to be paid for child or spousal support.

QUALIFIED DOMESTIC RELATIONS ORDERS (QDROS)
A court may award Plan assets to the participant’s spouse orformer spouse or the participant’s dependent. This usually will
occur in connection with a divorce or legal separation. In suchcases, the domestic relations order must be approved, or
qualified, as being in compliance with state law and with the Plan.
Both spouses and the court have the right to request information
about the benefits earned by the participant during the marital
period and how those benefits are derived, as well as information
about the options available to non-participants. To obtain a copyof the QDRO procedures, contact Fidelity Retirement Services(netbenefits.com or 866-682-7787).
California law has established procedures for dividing property
in connection with the termination of a state-registereddomestic partnership. For more information, call Fidelity
Retirement Services.

58

Accumulations of less than $50 on June 30, 2005: For
participants who failed to provide timely distribution directions
or confirm their location, accumulations were forfeited as ofJune 30, 2005. The forfeited amounts will be used to defrayreasonable plan expenses and to restore a participant’s
previously forfeited accumulations, plus interest, if theparticipant subsequently files a valid claim and provides
distribution directions.
Accumulations of $50 or more but less than $2,000 on
June 30, 2005: For participants who failed to provide timely
distribution directions, the investment options in theparticipant’s account were liquidated as of June 30, 2005, andan account was established on the participant’s behalf. The
aggregated assets of all such accounts were then invested in
the UC Savings Fund in order to preserve principal, and a
proportionate share allocated to each account. The UC Residual
Accounts group will maintain such accounts until such time as
the participant’s location can be confirmed and distribution
made. Each account is credited with monthly interest at a
fixed rate.
Accumulations of $1,000 or more as of October 23, 2008:
The participant’s accumulations were transferred to an IRA
custodian or trustee selected by the Plan Administrator to beheld on behalf of the participant.
If you think you may be entitled to funds in an ineligible account,contact the UC Retirement Administration Service Center at
800-888-8267.

403(b) Plan: Employee Information Statement

Employee Information
Statement
Participants in defined contribution plans are responsible fordetermining which, if any, investment vehicles best serve theirretirement objectives. The 403(b) Plan assets are invested inaccordance with the participant’s instructions; if no instructions
are given, assets are invested in the UC Pathway Fund with atarget date near the participant’s expected retirement date.
Participants should periodically review whether theirobjectives are being met, and if the objectives have changed,
the participant should make the appropriate changes. Carefulplanning with a tax advisor or financial planner may help toachieve better supplemental retirement savings.
Neither the Regents, the Chief Investment Officer, the Plan
Administrator nor any officer or affiliated officer of the
University makes any recommendation to participants forbuilding supplemental retirement savings, and the various
options available for the investment of contributions should
not be construed in any respect as a judgment regarding theprudence or advisability of such investments or as tax advice.
Neither the Regents, the Chief Investment Officer, the Plan
Administrator nor Fidelity Retirement Services bear any
fiduciary liability for any losses resulting from a participant’s
investment instructions. The Plan Administrator reserves theright to refuse to implement any investment instruction from aparticipant that violates Plan rules or IRC provisions.
All elections concerning contributions to the 403(b) Plan are
subject to payroll transaction and fund valuation deadlines.
Neither the University, the Chief Investment Officer, the Plan
Administrator nor any officer or affiliated officer shall be
responsible in any way for the purpose, propriety or tax
treatment of any contribution or distribution (or any otheraction or nonaction) taken pursuant to the direction of a Plan
participant, beneficiary, executor or administrator, or a court ofcompetent jurisdiction. Although the Regents, the Chief
Investment Officer, the Plan Administrator, and officers andaffiliated officers shall have no responsibility to give effect to adecision from anyone other than the Plan participant,beneficiary, executor or administrator, they reserve the right totake appropriate action, including termination and/or
disbursement of a participant’s account, to protect the Planfrom losing its tax-advantaged status for any event that violates
Plan rules or applicable IRC provisions.

59

60

Introduction......................................................................................................................................................................63
Eligibility..................................................................................................................................................................................64
Contributions..................................................................................................................................................................64
Pretax Contributions............................................................................................................................................64
Roth Contributions..................................................................................................................................................64
Leaves of Absence....................................................................................................................................................65
Termination of Employment....................................................................................................................65
Reappointment..............................................................................................................................................................65
Maximum Annual Contribution Limits...................................................................................65
Excess Salary Reductions..............................................................................................................................66
Investment of Contributions...................................................................................................................66457(b) Deferred Compensation Plan

457(b) Deferred Compensation Plan:
Plan Summary

Additional 457(b) Plan Information.........................................................................................69
Investment Options .............................................................................................................................................69
Plan Administration and Fees................................................................................................................69
Rollovers: Into the Plan....................................................................................................................................70
Rollovers: From the Plan................................................................................................................................70
Account Activity..........................................................................................................................................................71
Claims Procedures....................................................................................................................................................71
Plan Changes.....................................................................................................................................................................71
Assignment of Benefits....................................................................................................................................72
Qualified Domestic Relations Orders (QDROs).....................................................72
Employee Information Statement..............................................................................................72

Distributions....................................................................................................................................................................67
Current UC Employees.....................................................................................................................................67
Former Employees....................................................................................................................................................67
Beneficiaries.......................................................................................................................................................................68
Taxes on Distributions.......................................................................................................................................68
Early Distribution Penalties......................................................................................................................69
Required Minimum Distributions....................................................................................................6961

62

457(b) Plan: Introduction

Introduction
The 457(b) Plan is a deferred compensation plan described under§457(b) of the Internal Revenue Code (the IRC). Future benefits
from the 457(b) Plan will reflect the amount of a participant’s
voluntary salary deferral contributions plus earnings. Vesting isimmediate.
Employees who want to participate in the 457(b) Plan designate a
portion of their gross salary to be contributed on a pretax basis,thus reducing the participant’s taxable income. Taxes oncontributions and any earnings are deferred (that is, postponed)
until the participant withdraws the money.
The designated Plan Administrator of the 457(b) Plan is the Vice
President, Human Resources (VP-HR). The Office of the Chief
Investment Officer (OCIO) is responsible for monitoring a broad
range of professionally managed investment options available toPlan participants. Currently, Fidelity Retirement Services performs
recordkeeping duties. The relevant contact information is on theinside front cover. The Plan Administrator administers the 457(b)Plan for the sole benefit of Plan participants and theirbeneficiaries. Participation is voluntary and should be based on theparticipant’s financial objectives and resources. Individual
investment strategies should reflect the participant’s personalsavings goals and tolerance for financial risk. Participants may also
want to consult a tax advisor or financial planner before enrolling.
UC, the Regents, the Office of the Chief Investment Officer, UC
Human Resources and Fidelity Retirement Services are not liable
for any loss that may result from participants’ investment
decisions. This plan summary reflects Plan provisions as in effect63

457(b) Plan: Eligibility, Contributions

Eligibility

Contributions

July 1, 2024

Pretax and Roth (after-tax) salary deferral contributions to the457(b) Plan may come only from income paid through the UC
payroll system. Employees may also roll over money from other
employer-sponsored plans, including the taxable portion of alump sum or CAP distribution from the University of California
Retirement Plan (UCRP; see “Rollovers: Into the Plan,” page 12).

All employees of UC and UC College of the Law, San Francisco(Formerly Hastings College of the Law)—except students who
normally work fewer than 20 hours per week—are eligible toparticipate in the 457(b) Plan. An employee or former employee
continues participation until all funds held on the employee’s
behalf are distributed.

Contributions to the 457(b) Plan are reported annually
on employees’ W-2 forms. Pretax contributions reduce aparticipant’s taxable income and are not included in income
subject to taxation. Roth contributions do not reduce aparticipant’s taxable income and are included in income subject
to taxation.

The provisions of the Plan are subject to collective bargaining forrepresented employees.

Participants may enroll in both the pretax and Roth contribution
option. Upon enrollment, participants choose whether thecontribution will be pretax or Roth, or both, and indicate either
a flat dollar amount or a percentage of salary that they willcontribute through payroll deductions (generally monthly or
biweekly) up to their maximum annual contribution amount.
Under the percentage method, the deferral amount is calculatedusing the employee’s gross salary, and contributions change
proportionately as the participant’s salary changes.
Contributions to the 457(b) Plan do not reduce salary-related
University benefits such as leave accruals (vacation, sick leave,or PTO), life or disability insurance benefits, or benefits payablefrom UCRP.

PRETAX CONTRIBUTIONS
Employee pretax salary deferral contributions are deducted fromgross salary (after certain pretax deductions including medical
plan premiums), and income taxes are calculated on remaining
pay.
Taxes on contributions and any investment earnings are deferred
until the participant withdraws the money.
Pretax contributions may not be converted to Rothcontributions.

ROTH CONTRIBUTIONS
Employee Roth salary deferral contributions are deductedfrom pay after all pretax deductions (including medical plan
premiums) and income tax deductions have been applied.
Contributions and any investment earnings are not subject totaxation upon withdrawal if the money is withdrawn at least five
tax years from when the first Roth contribution was made and if
the participant is at least age 59 ½, disabled or passes away (read64Roth contributions may not be converted to pretax
contributions.

MAXIMUM ANNUAL CONTRIBUTION LIMITSThe IRC limits the amount participants may contribute annually
to tax-advantaged retirement plans and imposes substantial
penalties for violating contribution limits (see “Excess Salary
Reductions” on page 8) Limits are not applied to pretax andRoth contributions separately.

LEAVES OF ABSENCEFor 2024, the 457(b) Plan contribution limits are as follows:

Contributions stop during a leave without pay and resume
automatically at the same rate upon return to pay status unlessthe participant cancels them.

Regular contribution limit: $23,00017

For sabbatical leaves or administrative leaves with pay during
which employees earn less than 100 percent of regularcompensation, contributions continue in the same flat dollar
amount or percentage (see “Contributions,” page 6) as elected
before the leave unless the participant makes a change.
Because contributions remain the same while compensation
decreases, it is important for participants to review theircontribution amount, particularly if being withheld as a flat
dollar amount, before going on a paid leave.
Special rules may allow participants who return from military
leave to “make up” contributions that would have been credited
to their accounts during the military leave. Local Benefits
Offices can provide more information.
During paid vacation or sick leave, contributions continue
unchanged.

TERMINATION OF EMPLOYMENT

457(b) Plan: Contributions

the special tax notice provided by Fidelity Retirement Services
or available at ucal.us/specialtaxnotice for more information).

Participants who are age 50 or older any time during theyear: $30,50017
To contribute the maximum amount, participants should
check the limits and adjust their contributions for eachcalendar year accordingly.
SPECIAL CATCH-UP PROVISIONA special catch-up provision allows eligible participants tomake additional contributions in one or more of the threeconsecutive years ending before the year of the participant’s
elected retirement age. The elected retirement age can be any
age between 60 (50 for safety employees) and 70½.
For 2024, the total amount the participant can contribute using
the special catch-up limit is the lesser of two amounts:18• Twice the regular contribution limit for 2024($23,000 x 2 = $46,000) or• The regular contribution limit for 2024 plus the difference
between previous years’ regular contribution limits and theactual contributions made during those years (the unused
contribution capacity)19

If a participant leaves UC employment, salary deferral
contributions stop automatically. The payment options
available for a participant’s accumulations are describedin “Distributions: Former Employees” (see page 9).

REAPPOINTMENT
If a participant leaves UC employment or retires and is later
rehired into an eligible position, the participant may begin
contributing to the Plan again.

Or 100 percent of adjusted gross salary, if less. Adjusted gross salary for any
year is a participant’s gross University salary (including any shift differential,
summer or equivalent term salary, health science faculty income over thebase professorial salary, stipends and overtime), minus any required pretax
contributions to other retirement plans (for example, mandatory contributions
to the UC Defined Contribution Plan or to UCRP) and any pretax payments for
UCRP (to establish, reestablish or convert prior periods of service credit or toeliminate the noncontributory offset).
18
Participants who take advantage of this special provision cannot also takeadvantage of the over-age-50 provision; they must choose whichever provides
the higher contribution amount.
19
The calculation can include only those years in which the participant was eligible
to contribute to the Plan, which was established in 2004.
1765

457(b) Plan: Contributions

Contributions

Here is an example showing contribution limits and annual
contributions since 2021 for a hypothetical employee:
2021

2022

2023

Regular contribution
limits$19,500$20,500$22,500

Participant
contributions$15,000$15,000$15,000

Unused eligible
contribution capacity$4,500$5,500$7,500

Cumulative unused contribution capacity:
Regular 2024 contribution limit:$17,500$23,000

Total amount the participant cancontribute in 2024:$40,500

In subsequent years, the special catch-up limit must be reduced
to reflect any unused contribution capacity that has already beentaken into account in calculating a special catch-up provision.

EXCESS SALARY REDUCTIONS
UC payroll systems monitor 457(b) Plan contributions,and a participant’s salary deferral contributions will stop
automatically if they reach the applicable limit before theend of the year. In limited circumstances, however, excess
salary reductions may be made—if, for example, a participant
contributes to a 457(b) plan with another employer.
If participants think they have overcontributed but have notbeen contacted, or if they contribute to a 457(b) plan withanother employer during the year, they should call Fidelity
Retirement Services before the end of the year (or by March
1 of the following year) to request a refund.
The IRC requires that excess salary reductions in any calendar
year be refunded to the participant by April 15 of the following
year to avoid tax penalties. If the excess is refunded by April 15,
the excess is treated as ordinary income for the year in which
the salary reductions were made. The refund will also reflect any
earnings (or loss) generated by the excess salary reductions duringthat year. The earnings must be reported on tax returns for theyear in which the refund is paid. For example, if a participant
receives a refund of 2024 excess contributions in 2024, allamounts should be reported on tax returns for 2024. If theparticipant receives the refund in 2025, however, the excess
contributions should be reported on 2024 tax returns and any
earnings on tax returns for 2025.

66

Refunds of excess contributions and earnings are not eligible
for rollover, nor are they subject to the penalty taxes on early
distributions (see “Early Distribution Penalties” on page 11).
If an excess contribution is not refunded by April 15, the excess
amount must remain in the Plan. The participant must stillreport the excess as ordinary income for the year in which thecontributions were made. In addition, excess pretax contribution
amounts will again be taxable as ordinary income in the year inwhich the participant receives a distribution that includes thesefunds. In other words, excess pretax contributions that are notrefunded by the April 15 deadline are taxed twice.
If a participant’s Roth account includes excess deferrals thatwere not distributed by the April 15 deadline, any distribution
from the account will be considered “nonqualified” (subject totaxes and penalties) under IRC rules. In this case, distributions
will be considered nonqualified until the total amount
distributed from the Roth account equals the total amount ofexcess deferrals and any associated investment income. Such
distributions would not be eligible for rollovers.
If, during a year, contributions for the participant are madeto another plan over which the participant has control, or aparticipant makes salary deferral contributions to anotherplan (other than a 457(b)), the participant should consult a tax
advisor on the applicable limitations on contributions.

INVESTMENT OF CONTRIBUTIONSParticipants choose the investment options in which they want
to invest their contributions. The investment options are
explained on page 11.
Subject to payroll deadlines, participants may start, stop orchange the amount of their contributions to the Plan at any
time on the Fidelity Retirement Services website(netbenefits.com) or by calling Fidelity at 866-682-7787. They
also may redirect future 457(b) Plan contributions to one ormore of the investment options and/or exchange (transfer)
accumulations in the Plan among the investment options at
any time. Direct exchanges between certain investment
options may be prohibited. See the Fidelity Retirement
Services website (netbenefits.com) for more information.

Distribution rules vary depending on the participant’s
employment status.

CURRENT UC EMPLOYEESThe IRC restricts the 457(b) Plan in-service distributions made tocurrent employees. In general, an employee may take a distributionof plan accumulations if any of the following apply:• Voluntary in-service withdrawal of the total balance is allowed
once if the balance is less than $5,000 and no contributions
have been made in the past two years and the employee has
never taken another distribution except an unforeseeable
emergency withdrawal• Attainment of age 59½ or• An unforeseeable emergency or other permitted withdrawal
as described below
UNFORESEEABLE EMERGENCY WITHDRAWAL
Participants may be able to take a withdrawal on account of an
unforeseeable emergency resulting from:• An illness or accident involving the participant or theparticipant’s beneficiary or the spouse of the participant or
the participant’s beneficiary or a dependent of the participantor the participant’s beneficiary• Loss of property due to casualty or• Other similar, extraordinary and unforeseeable circumstances
arising from events beyond the control of the participant
The unforeseeable emergency withdrawal may not be in excessof the amount reasonably needed to satisfy the participant’s orbeneficiary’s emergency need. The participant must first satisfy
the need using other available financial resources including:• Insurance reimbursements• Cessation of salary deferral contributions to the 457(b)Plan, and the UC 403(b) Plan, and the Defined Contribution
Plan After-Tax Account• A 403(b) Plan loan
• Withdrawal of eligible monies from the UC DefinedContribution Plan or• Liquidation of other assets, to the extent the liquidation does
not itself cause severe financial hardship
After taking an unforeseeable emergency withdrawal, aparticipant may not make voluntary contributions to the457(b) Plan, the 403(b) Plan or the DC Plan for six months.

distribution are generally taxed as ordinary income in the year
issued. In accordance with IRS regulations, Fidelity Retirement
Services will withhold 10 percent for federal taxes and 1 percent
for California state taxes (unless the participant elects nowithholding).
There are specific federal tax withholding rules that apply to all
distributions from retirement and savings plans (see “Taxes onDistributions” on page 10).
OTHER PERMITTED WITHDRAWALS
Effective January 1, 2024, participants who are victims ofdomestic abuse may request a distribution up to the lesser of
50% of their account balance or $10,000 (indexed for inflation).

FORMER EMPLOYEESParticipants who leave UC employment have the following
payment options for assets in the 457(b) Plan:• Leave the assets in the Plan if the Plan balance totals at least$2,000, subject to required minimum distribution rules.
Although participants may no longer contribute, they may
transfer funds among the investment options, subject to thetransfer/exchange rules and roll over money into the Plan.
• Take a full or partial distribution (payable to the participant or,if eligible, directly rolled over to a traditional IRA, a Roth IRA
or employer-sponsored plan); see page 11 for information on
early distributions.
• Arrange for systematic withdrawals. This option enables theparticipant to receive regular, periodic distributions without
having to make a specific request for each one.
The following Plan rules apply to distributions of small accounts
after the participant has terminated UC employment:
If the value of the participant’s accumulations is less than
$2,000, but more than $1,000, and the participant fails toprovide distribution directions, the participant’s accumulations
will be rolled over to an IRA custodian designated by the Plan
Administrator in an account maintained for the participant.
If the value of the participant’s accumulations is $1,000 or
less, and the participant fails to provide distribution directions,the participant’s accumulations shall be paid directly to theparticipant at the address of record.
In general, participants cannot request a distribution until 31
days after their employment ends. However, this is waived forparticipants who are 59 ½ or older.

Withdrawals of pretax accumulations and investment earnings
on a Roth account that do not qualify for a non-taxable
67

457(b) Plan: Distributions

Distributions

457(b) Plan: Distributions

Distributions

All distributions are subject to Fidelity Retirement Services
and payroll deadlines. No distributions can be made until
all payroll activity is complete, which can take from 31 to
60 days.

BENEFICIARIES
Participants should designate a beneficiary to receive theiraccumulations in the 457(b) Plan in the event of their death.
Participants may name more than one beneficiary and specify
the percentage of the Plan balance that each beneficiary is toreceive. A beneficiary may be a person, trustee or organization.
Subject to restrictions on small accounts, a beneficiary may electto take the benefit as a lump sum or in periodic payments over aterm that meets the IRC requirements on minimum distributions.
If a beneficiary is a person and fails to make an election, thebenefit will be distributed to the beneficiary in a lump sum by thelast day of the calendar year that contains the tenth anniversary of
the participant’s death. You may wish to speak with a tax advisor
for more information on your options.
A deceased participant’s beneficiary (the participant’s beneficiary)
may also designate a beneficiary (beneficiary’s beneficiary) toreceive the balance in the deceased participant’s account if theparticipant’s beneficiary dies before taking a total distribution.
The beneficiary’s beneficiary must decide how they wantmoney to be distributed within nine months of the death of theparticipant’s beneficiary.
If no beneficiary has been named, or if the beneficiary dies
before the participant, any amount remaining will be distributed
to the participant’s eligible survivors in the following order ofsuccession:• Surviving spouse or domestic partner or, if none,• Surviving children, biological or adopted, on an equal-sharebasis (children of a deceased child share their parent’s
benefit) or, if none,• Surviving parents on an equal-share basis or, if none,

Retirement Services (netbenefits.com or 866-682-7787). The
address of record is binding for all purposes of the 457(b) Plan.
COMMUNITY PROPERTYMarried participants and registered domestic partners who
designate someone other than their legal spouse or partner asa beneficiary may need to consider the spouse’s or partner’scommunity property rights. For residents of a community
property state such as California, a designation of beneficiary
may be subject to challenge if the spouse or partner would
consequently receive less than the share of the benefit
attributable to community property.
Procedures established for the University of California
Retirement Plan (UCRP) are used to determine whether adomestic partner is included in the order of succession above.
Generally, procedures require that an individual must be
designated as a participant’s domestic partner by one of four
possible methods:• Registration of the domestic partnership with California’s
Secretary of State• Registration of a union, other than marriage, validly formed
in another jurisdiction, that is substantially equivalent to a
California domestic partnership or• Enrollment of the domestic partner in UC-sponsoredhealth benefits and successful completion of the eligibility
verification process (note that enrolling your partner inbenefits that do not require eligibility verification, including
the Postdoctoral Scholars Benefit Program and the Graduate
Student Health Insurance Plan, will not establish your partner
as your survivor for UCRP benefits)• Filing of a UC Declaration of Domestic Partnership form
(UBEN 250) and two pieces of evidence of financial
interdependence with the UC Retirement Administration
Service Center.
If a member dies before filing a UC Declaration of Domestic
Partnership, only documents from the first three methods may
be used to establish a domestic partnership under the Plan.

• Brothers and sisters on an equal-share basis or, if none,• The participant’s estate

TAXES ON DISTRIBUTIONS

A will or trust does not supersede a designation of beneficiary,
nor does either supersede the Plan’s “default” beneficiaryrules (described above) that apply in the absence of a valid
beneficiary designation.

A distribution of pretax accumulations and investment
earnings on a Roth account that does not qualify for a nontaxable distribution is generally taxed as ordinary income inthe year it is issued. Note, however, that there are specificfederal tax withholding rules that apply to all distributions fromretirement savings and investment plans. For more information
about the tax treatment of Plan distributions, read the special
tax notice provided by Fidelity Retirement Services before
requesting a distribution. The tax rules are quite complex; for

It is the participant’s responsibility to keep information on
beneficiaries, including addresses, up to date. You can name orchange your beneficiary information by contacting Fidelity

68these reasons, participants considering a distribution from thePlan are strongly encouraged to consult a tax advisor.
Participants who choose to take a distribution are responsible forsatisfying the distribution rules and for any tax consequences.
Distributions to participants are reported annually on IRS Form
1099-R, which are sent in January following the calendar year inwhich the distribution was issued.

EARLY DISTRIBUTION PENALTIESDistributions from 457(b) plans are generally not subject to theearly distribution penalties that may apply to distributions fromother types of retirement plans. If, however, an amount is rolled
over from another type of retirement plan, such as a 403(b)plan or a tax-qualified 401(a) plan, to the 457(b) Plan, any
distributions attributable to the rolled over amount that are
made before a participant attains age 59½ may be subject tofederal and state penalty taxes unless an exception applies.
Early distribution penalties are not assessed when a distribution
is paid. Participants who are subject to the penalties are
responsible for reporting them to the IRS when they file theirincome tax returns.

REQUIRED MINIMUM DISTRIBUTIONSParticipants must begin receiving minimum distributions fromthe Plan by April 1 of the calendar year following the later of:• The year in which they leave University employment• The year in which they reach age 73 (for individuals who turn72 on or after January 1, 2023)
Participants who do not receive minimum distributions by therequired dates, or who receive less than the minimum amountthe law requires, must pay a nondeductible 25 percent excise tax
on the difference between the amount that should have been
received and the amount received.
Required minimum distributions are not eligible for rollover.
Required minimum distributions are calculated inaccordance with U.S. Treasury regulations.
Effective January 1, 2024, a participant’s Roth account balance is
excluded from the required minimum distribution calculation.

INVESTMENT OPTIONS
Plan participants can choose from a broad range ofprofessionally managed investment options that are monitoredby the Office of the Chief Investment Officer of the Regents(OCIO) based on criteria established by the Regents. The UC
Retirement Savings Program (UC RSP) fund menu includes the
UC Pathway Funds, each of which adjusts its asset mix as thefund approaches its target date, plus additional investment
funds that represent a comprehensive range of asset classes withdifferent objectives and risk and return characteristics. Most
funds offered on the UC RSP fund menu are designed to havelower expenses than many similar publicly traded mutual funds.
A complete description of each of these options is available on
netbenefits.com.
Participants may also invest in mutual funds that are notincluded in the UC RSP fund menu by opening a self-directed
brokerage window account. Participants must agree to theterms and conditions that govern the account, including an
acknowledgement of the risks involved and the special fees that
may apply.
Information about investment objectives, risks, changes andexpenses of all options is available, free of charge, from Fidelity
Retirement Services (netbenefits.com or 866-682-7787).

PLAN ADMINISTRATION AND FEESThe Vice President of Human Resources is the Plan Administrator
with responsibility for the day-to-day management and operationof the Plan. The Office of the Chief Investment Officer (OCIO)
selects and monitors the investment options available under
the Plan.
INVESTMENT MANAGEMENT FEES
Funds that are included in the UC RSP fund menu charge aninvestment management fee (i.e., expense ratio), which is netted
from the investment experience of the funds. There are no frontend or deferred sales loads or other marketing expenses charged
by funds that are included in the UC RSP fund menu.
ADMINISTRATIVE FEES
A quarterly fee will be deducted from your account balance foradministrative services. The administrative services fee covers
expenses for recordkeeping services for your account(s),communications, financial education, internal UC staff support
for the Plan, and other non-investment services. If you havemore than one Retirement Savings Program account (forexample, a 457(b) Plan account and a DC Plan account), you will
be charged only one administrative services fee per quarter.

69

457(b) Plan: Additional 457(b) Plan Information

Additional 457(b)Plan Information

457(b) Plan: Additional 457(b) Plan Information

Additional 457(b)Plan Information
ROLLOVERS: INTO THE PLAN

ROLLOVERS: FROM THE PLAN

Participants may move eligible retirement funds from a previous
employer plan or an IRA to the 457(b) Plan via a rollover. The
457(b) Plan accepts rollovers of distributions from:All 457(b) Plan distributions except those listed below are
eligible for direct rollover (distribution made payable to a
traditional IRA, a Roth IRA or another employer plan). As long as
the check for the distribution is payable directly to the plan, no
taxes should be withheld and the funds will retain tax-deferredstatus. If a direct rollover is to a Roth IRA, the pretax portionof the rollover will be reported as taxable income in the yearof distribution. 20 If made payable to the participant, taxable
distributions are subject to mandatory 20 percent federal tax
withholding. If a direct rollover is to a Roth IRA, the period ofparticipation in the UC 457(b) Roth will not carry over. However,the period of participation may carry over if rolled from the UC457(b) into another designated Roth plan.

• Other employer-sponsored plans, including 401(a), 401(k),403(b) and governmental 457(b) Plans and/or• Lump sum cashouts and Capital Accumulation Payment (CAP)
distributions from the UC Retirement Plan
• Traditional IRAs
To roll over money directly from another employer-sponsoredplan to UC’s 457(b) Plan, the participant must arrange to havethe plan’s custodian or plan administrator write a check for the
distribution, payable to “Fidelity Investments Institutional
Operations Company, Inc. (FIIOC).” As long as the check is
payable directly to FIIOC (not to the participant), no taxes
should be withheld from the distribution, and the pretax funds
will retain their tax-deferred status. For direct rollovers into
the plan from a designated Roth plan (which does not include
Roth IRA rollovers), the period of participation from the otherplan can count toward the five-year qualification period when
distributed.
Employees who are eligible to participate in the 457(b) Plan may
execute a rollover (and become Plan participants) even if they
have not yet begun contributing to the Plan through payroll
deductions.
Former employees who did not participate in the 457(b) Plan are
not eligible to roll over funds into the Plan, except for eligible
distributions from UCRP of $2,000 or more.
If a participant takes a distribution from a former employer plan,
including UCRP, and the check is payable to the participant, theparticipant can also roll over the taxable portion of the money
into the 457(b) Plan, as long as the rollover is made within 60
days after receiving the distribution. To roll over 100 percent of
the taxable portion of the distribution, the participant must
replace from personal savings or other sources an amount equal
to the taxes that were withheld when the distribution was
issued.

Participants may also roll over an eligible 457(b) Plan
distribution consisting of pretax funds that has been paid
to them, as long as the rollover to the IRA or new plan occurs
within 60 days of receipt of the distribution. A participant who
wants to roll over 100 percent of the distribution must replacefrom personal savings or other sources an amount equal to thetaxes that were withheld when the distribution was issued. Anyamount not rolled over will be taxed as ordinary income for theyear in which the distribution was issued. It may also be subject
to the early distribution penalties if the distribution is attributable
to a rollover from a plan subject to the early distribution
penalties.
457(b) Plan distributions that are not eligible for rollover include:• Required minimum distributions• Refunds of excess contributions (plus earnings)• Systematic withdrawals and• Unforeseen emergency withdrawals
Distributions made to non-spouse beneficiaries are eligible only
for direct rollover and only to an inherited IRA.
For more information about the tax treatment of rollovers, readthe special tax notice available from Fidelity Retirement Services
on netbenefits.com.

20

70

It is recommended that participants considering a rollover to a Roth IRA
consult with a financial or tax advisor.

CLAIMS PROCEDURES

To help participants better understand the Plan’s benefits andeffectively manage their accounts, Fidelity Retirement Services,on behalf of UC Human Resources, provides personalizedaccount information via two electronic sources.

If Fidelity Retirement Services is unable to verify a claimant’s rightto a benefit within a short period of time, the claimant will be
notified of the need to forward a written request to theattention of the UC Contract Administrator, UC Human
Resources, P.O. Box 24570, Oakland, CA 94623-1570, who will
review the claim on behalf of the Plan Administrator. The
request should include all relevant information. Within 90 daysof receipt of the request, the contract administrator will approveor disapprove the claim. If the claim is denied, the contract
administrator will notify the claimant in writing, setting forth thespecific reasons for the denial and providing specific references
to the plan provisions on which the denial is based. The contract
administrator also will describe any additional material orinformation needed to perfect the claim and provide an
explanation of the 457(b) Plan’s review procedures.

• Participants who have Internet access can find current,
comprehensive information about their accounts and makecertain online Plan transactions by visiting the Fidelity
Retirement Services website (netbenefits.com).
• Participants can retrieve personal financial information
about their accounts and make transactions on the Fidelity
Retirement Services toll-free telephone line (866-682-7787).
Annual reports containing audited financial statements areavailable on the UC Office of the President website(ucal.us/ucrsreports) or from the UC Retirement Administration
Service Center.
Plan summaries are available on UCnet, the Fidelity Retirement
Services website or from your local Benefits Office or the UC
Retirement Administration Service Center.
Participants may view the UC 457(b) Plan document online(ucal.us/UCRSdocuments).
Participants should read the complete descriptions of theinvestment funds and accompanying Plan materials before
making any investment decisions.
All notices or communications to a participant or a beneficiary
will be effective when sent by first-class mail or conveyed
electronically to the participant’s address of record. The
University and the Regents are entitled to rely exclusively upon
any notices, communications or instructions issued in writingor electronically conveyed by UC Human Resources that are
believed to be genuine and to have been properly executed.

If the claimant’s request is denied by the contract administrator,
the claimant may submit a written request for an independent
review by the Plan Administrator within 60 days of receiving thedenial. The request for an independent review should be
forwarded to the Plan Administrator, P.O. Box 24570, Oakland,
CA 94623-1570. The request should be accompanied by all
supporting documentation. The Plan Administrator may
require the claimant to submit additional documentation
within 30 days of a written request. The Plan Administrator will
make a full review of the request within 120 days of the date
the appeal was filed, unless the circumstances require a longer
period. If the Plan Administrator upholds the contract
administrator’s denial, the Plan Administrator will notify theclaimant. The decision of the Plan Administrator will be final andconclusive on all persons.
If, after exhausting administrative appeal procedures, theclaimant still believes that a benefit has been improperly paid or
denied, the claimant has the right to initiate legal proceedings.
For service of process, send to:
The Regents of the University of California,
Trustee of the 457(b) Plan, c/o UC Legal—Office of the GeneralCounsel, 1111 Franklin Street, Oakland, CA 94706.

PLAN CHANGESThe Plan is subject to change and to independent audit tocomply with applicable federal and state statutes, IRC
regulations and industry standards. Participants are notified
whenever substantive changes to the Plan occur. Although thePlan is expected to continue indefinitely, the Regents reserve
the right to amend or terminate the Plan at any time.

71457(b) Plan: Additional 457(b) Plan Information

ACCOUNT ACTIVITY

457(b) Plan: Additional 457(b) Plan Information, Employee Information Statement

Additional 457(b)Plan Information

Employee Information
Statement

ASSIGNMENT OF BENEFITS

Participants in defined contribution plans are responsible fordetermining which, if any, investment vehicles best serve theirretirement objectives. The 457(b) Plan assets are invested inaccordance with the participant’s instructions; if no instructions
are given, assets are invested in the UC Pathway Fund with atarget date near the participant’s expected retirement date.
Participants should periodically review whether theirobjectives are being met, and if the objectives have changed,
the participant should make the appropriate changes. Carefulplanning with a tax advisor or financial planner may help toachieve better supplemental retirement savings.

Generally, 457(b) Plan benefits payable to participants,
beneficiaries or survivors cannot be attached by creditors, nor
can anyone receiving benefits assign payments to others. Planbenefits are intended solely for the security and welfare ofparticipants and their beneficiaries and survivors.
There are some exceptions. For example, the IRS may attach
retirement benefits to collect unpaid taxes, or a court may ordercertain benefits to be paid for child or spousal support.

QUALIFIED DOMESTIC RELATIONS ORDERS (QDROS)
A court may award Plan assets to the participant’s spouse orformer spouse or the participant’s dependent. This usually occurs
in connection with a divorce or legal separation. In such cases, thedomestic relations order must be approved, or qualified, as being
in compliance with state law and with the Plan terms.
Both spouses and the court have the right to request
information about the benefits earned by the participant during
the marital period and how those benefits are derived, as wellas information about the options available to non-participants.
To obtain a copy of the QDRO procedures, contact Fidelity
Retirement Services (netbenefits.com or 866-682-7787).
California law has established procedures for dividing property
in connection with the termination of a state-registereddomestic partnership. For more information, call Fidelity
Retirement Services.

72

Neither the Regents, the Chief Investment Officer, the Plan
Administrator nor any officer or affiliated officer of the
University makes any recommendation to participants forbuilding supplemental retirement savings, and the various
options available for the investment of contributions should
not be construed in any respect as a judgment regarding theprudence or advisability of such investments or as tax advice.
Neither the Regents, the Chief Investment Officer, the Plan
Administrator nor Fidelity Retirement Services bear any
fiduciary liability for any losses resulting from a participant’s
investment instructions. The Plan Administrator reserves theright to refuse to implement any investment instruction from aparticipant that violates Plan rules or IRC provisions.
All elections concerning contributions to the 457(b) Plan are
subject to payroll transaction and fund valuation deadlines.
Neither the University, the Chief Investment Officer, the Plan
Administrator nor any officer or affiliated officer shall be
responsible in any way for the purpose, propriety or tax
treatment of any contribution or distribution (or any otheraction or nonaction) taken pursuant to the direction of a Plan
participant, beneficiary, executor or administrator, or a court ofcompetent jurisdiction. Although the Regents, the Chief
Investment Officer, the Plan Administrator, and officers andaffiliated officers shall have no responsibility to give effect to adecision from anyone other than the Plan participant,beneficiary, executor or administrator, they reserve the right totake appropriate action, including termination and/or
disbursement of a participant’s account, to protect the Planfrom losing its tax-advantaged status for any event that violates
Plan rules or applicable IRC provisions.

Health benefits for retired UC employees are one of the rewards
UC currently offers long-serving eligible employees. The amountUC will contribute depends on the date you became eligible forbenefits (or your rehire date if you incurred a break in service ofmore than 120 days) and the amount of service credit you haveearned. UC’s contributions are not part of your vested, or
guaranteed, retirement benefits and are therefore subject tochange. These benefits are subject to collective bargaining. If
you’re in a union, consult your collective bargaining agreementfor details.
Under both primary retirement benefit options — Pension
Choice and Savings Choice — employees who work for UC for
10 full years or more may be eligible to continue some UCsponsored health benefits.

ELIGIBILITY
To be eligible for these benefits, employees must:• Have a retirement date that is within 120 days of the datethey end UC employment (for Savings Choice participants,
the date retiree health benefits begin will be treated as the
Savings Choice participant’s retirement date for this purpose)• Be an active eligible employee enrolled in either UCRP
(Pension Choice) or Savings Choice at time of separation• Be enrolled in or eligible to enroll in Full UC employee
benefits at the time of separation• Continue health coverage until retiree health benefits become
effective

These benefits, which include medical, dental, vision, legal andaccidental death and dismemberment (AD&D), are separate
from the UC Retirement Plan (UCRP) and are not a vested
benefit. That means these benefits are not guaranteed and that
UC’s contributions to the cost of the benefits may change or
be discontinued at any time. Retiree health and welfare benefits
are subject to collective bargaining for current employees who
are represented by a union.

Retiree health and welfare benefits are not available to those
who elect a UCRP Lump Sum Cashout or to those who take afull refund or rollover of Savings Choice accumulations before
beginning retiree health benefits. A partial refund or rollover of
Savings Choice account funds will not affect eligibility for retiree
health benefits, or retiree health service credit, as long as the DC
Plan account maintains a balance of at least $2,000 (with someof that money remaining in the Savings Choice account).

Currently, UC contributes to the cost of medical and dental
insurance for eligible retirees. For vision, legal and AD&D,
retirees who enroll pay the full premiums.

If there is a gap in time between the date an employee ends UC
employment and the date UC-sponsored retiree medical anddental benefits become effective, the employee may have to
pay the full monthly cost for medical and dental plans (including
UC’s contribution) to continue coverage during the gap period tomaintain eligibility. Retirees may also continue vision and legal
insurance during any gap period to ensure continuing coverage.

Please note that this is a summary of your benefits only;
additional requirements, limitations and exclusions may apply.
Refer to applicable plan documents and regulations for details.
The applicable policy issued by the carrier and the University ofCalifornia Group Insurance Regulations and other applicable UC
policies will take precedence if there is a difference between theprovisions therein and those of this document.

In addition, retirees must meet the following service credit
requirements, based on the date they became a member of oneof the two primary retirement benefit plans (Pension Choiceor Savings Choice), to be eligible for retiree medical and dental
coverage. Only UC service credit — and not credit from areciprocal system, such as CalPERS — counts toward eligibility
for retiree medical and dental coverage.

73

Health and Welfare Benefits for Retirees

Health and Welfare Benefits
for Retirees

Health and Welfare Benefits for Retirees

Health and Welfare Benefits
for Retirees
If you initially become a member of the Pension Choice or
Savings Choice option on or after July 1, 2016, or are rehired
as an eligible employee after that date following a break inservice of more than 120 days, you are eligible to enroll in thesebenefits provided you are 55 or older and have at least 10 fullyears of retiree health service credit at the time you retire. If you
retire at age 56 or older, you will receive a percentage of UC’scontribution toward the medical and dental plans’ monthly
premiums based on your age and years of UCRP or retiree healthservice credit at retirement. To receive the maximum UC
contribution toward the total cost of coverage, you need toretire on or after age 65 with 20 or more years of service.
The following chart shows the percentage of the UC
contribution for all eligible ages and years of service credit.

GRADUATED ELIGIBILITY FORMULA
To find the university contribution for a particular age and number of years of retiree health service credit, look down the far left column for theappropriate age; then look across that row to the number of years of service credit. That will show the percentage of the maximum university
contribution that a retiree at that age and with those years of service credit will receive. Example: with 15 years of service credit at age 60, the retiree
receives 37.5% of the maximum university contribution.
Age*

Years of Retiree Health Service Credit at Retirement
10

11

12

13

14

15

16

17

18

19

20+

55

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

56

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

57

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

58

15.0%

16.5%

18.0%

19.5%

21.0%

22.5%

24.0%

25.5%

27.0%

28.5%

30.0%

59

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

36.0%

38.0%

40.0%

60

25.0%

27.5%

30.0%

32.5%

35.0%

37.5%

40.0%

42.5%

45.0%

47.5%

50.0%

61

30.0%

33.0%

36.0%

39.0%

42.0%

45.0%

48.0%

51.0%

54.0%

57.0%

60.0%

62

35.0%

38.5%

42.0%

45.5%

49.0%

52.5%

56.0%

59.5%

63.0%

66.5%

70.0%

63

40.0%

44.0%

48.0%

52.0%

56.0%

60.0%

64.0%

68.0%

72.0%

76.0%

80.0%

64

45.0%

49.5%

54.0%

58.5%

63.0%

67.5%

72.0%

76.5%

81.0%

85.5%

90.0%

65

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%* Age is measured in whole years. Please note that separate rules may apply for members of more than one retirement tier, or for members who are
represented by a union. Please see the Retirement Handbook (available at ucal.us/retirementhandbook) or your bargaining unit’s contract for details.

74

Health and Welfare Benefits for Retirees

UC’S CONTRIBUTION TO MEDICALAND DENTAL PREMIUMSMEDICARE PLAN
Eligible for100% of UC
Contribution

Subject tograduated
eligibility;
receiving
50% of UC
contribution

Subject tograduated
eligibility;
receiving
75% of UC
contribution

Total monthly
premium

$250

$250

$250

UC
Contribution

$350

$175

$262.50Your monthly
premium

0$75

0MedicarePart B
reimbursement*

$100

0

$12.50Currently UC contributes to the cost of medical and dental
premiums for eligible retirees. The amount of the contribution
is determined annually, depending on state funding and otherfactors. It is not a guaranteed benefit and could be discontinued
at any time.
Here are examples of how the UC contribution is applied
to retiree medical benefits. The numbers are for illustrative
purposes only, and are not actual premiums or contributions.
NON-MEDICARE PLAN
Eligible for100% of UC
Contribution

Subject tograduated
eligibility;
receiving
50% of UC
contribution

Subject tograduated
eligibility;
receiving
75% of UC
contribution

Total monthly
premium

$575

$575

$575

UC
Contribution

$450

$225

$337.50Your monthly
premium

$125

$350

$237.50* If UC’s contribution to your medical plan is greater than the premium, UC
reimburses you for a portion of the standard Medicare Part B premium you pay
for Medicare coverage, usually as a deduction from your Social Security benefit.

In general, the maximum UC contribution does not cover theentire premium cost for non-Medicare plans.

75

By authority of the Regents, University of California Human Resources, locatedin Oakland, administers all benefit plans in accordance with applicable plan
documents and regulations, custodial agreements, University of California Group
Insurance Regulation, group insurance contracts, and state and federal laws. No
person is authorized to provide benefits information not contained in thesesource documents, and information not contained in these source documents
cannot be relied upon as having been authorized by the Regents. Source
documents are available for inspection upon request (800-888-8267). What is
written here does not constitute a guarantee of plan coverage or benefits —particular rules and eligibility requirements must be met before benefits can bereceived. The University of California intends to continue the benefits describedhere indefinitely; however, the benefits of all employees, retirees and plan
beneficiaries are subject to change or termination at the time of contract renewal
or at any other time by the University or other governing authorities. The
University also reserves the right to determine new premiums, employer
contributions and monthly costs at any time. Health and welfare benefits are notaccrued or vested benefit entitlements. UC’s contribution toward the monthly
cost of the coverage is determined by UC and may change or stop altogether, andmay be affected by the state of California’s annual budget appropriation. If you
belong to an exclusively represented bargaining unit, some of your benefits may
differ from the ones described here. For more information, employees should
contact their Human Resources Office and retirees should call the UC Retirement
Administration Service Center (800-888-8267).
In conformance with applicable law and University policy, the University is anaffirmative action/equal opportunity employer. Please send inquiries regarding
the University’s affirmative action and equal opportunity policies for staff toSystemwide AA/EEO Policy Coordinator, University of California, Office of the
President, 1111 Franklin Street, CA 94607, and for faculty to the Office ofAcademic Personnel and Programs, University of California, Office of the
President, 1111 Franklin Street, Oakland, CA 94607.

76

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