Chapter Title
RETIREMENTBENEFITS DECISION GUIDE

Retirement Benefits
Decision Guide
For eligible faculty and staff hired on or after July 1, 20161

Introduction

Your UC Retirement Benefits
Our people make UC great, and we
pride ourselves on being a place where
everyone feels valued and recognized fortheir contributions.
Your retirement benefits are an importantpart of your compensation, so UC gives
you options: Pension Choice, for a lifetime
pension benefit, or Savings Choice, for a
portable 401(k)-style account.
Choose the option that’s right for you andenroll as soon as you can — your benefits
only begin to grow once you enroll.

The summaries in this booklet explain the plans’ provisions and the policies andrules that govern them. If a conflict exists between these summaries and the plan
documents, the plan documents govern. The Plan Administrator has the authority
to interpret disputed provisions.
3

Chapter Title

1.

Getting Started
Welcome to UC! You may be more focusedon starting your UC career right now than on
your retirement. But preparing for a successful
retirement is one of the most significant
financial responsibilities you’ll face, and we’rehere to help. In this guide, we’ll explain youroptions and resources so you can choose theretirement benefits that are right for you.
4

Chapter1.
Helping
Title
You Prepare for a Successful Retirement

Your Benefits Decision Checklist
Your retirement benefits don’t start
until you enroll — check off thesetasks to make an informed decisionand enroll as soon as possible.

❑ UNDERSTAND YOUR OPTIONS
Whether you choose Pension
Choice (a lifetime pension benefit)
or Savings Choice (a 401(k)-likeaccount), you and UC will bothcontribute to your retirement. But
Pension Choice and Savings Choice
work very differently — and if you
choose (or default into) Pension
Choice, you can’t change yourmind later.
HOW EACH OPTION WORKS
Pages 6–11
ILLUSTRATIONS OF DIFFERENTCHOICES
Pages 14–15
MODEL YOUR OPTIONS
myUCretirement.com/choose❑ GET HELPYou don’t have to do this alone!
Take advantage of webinars andcounseling from UC to help you
make the right retirement choices
for you.
ATTEND A WEBINAR
myucretirement.com/Classes/
RetirementChoice
MEET WITH A WORKPLACEFINANCIAL CONSULTANT
800-558-9182 orFidelity.com/schedule/UC❑ MAKE YOUR CHOICE
ENROLL ON
MYUCRETIREMENT.COM
myUCretirement.com/choose

THE SOONER THE BETTER:
Every day — and dollar — counts. You don’t receive UC contributions or service
credit toward your primary retirement benefits and retiree health benefits until
you enroll or you default (after 90 days) into Pension Choice.
For Pension Choice
If you wait 90 days to enroll or default, you lose three months of UCRP service
credit, which counts toward your eligibility for — and the amount of — yourpension.
For Savings Choice
If you wait until the deadline, you lose three months of contributions from UC.
If you miss the deadline, you’ll be enrolled in Pension Choice with no option toswitch later.
5Chapter Title

2.
Copy

Your Primary Retirement
Benefit Options: Pension Choiceor Savings ChoicePension Choice and Savings Choice can both
help you build valuable retirement income,but there are some big differences. Here’s an
overview of who’s eligible for these benefits,
how each option works, and how long you
have to make your choice. For complete
details, please see the Summary Plan
Descriptions.

6You are eligible for a choice of primary
retirement benefits if you:
• Are hired into an eligible faculty or
career staff appointment on or after
July 1, 2016; OR• Are hired in an ineligible position onor after July 1, 2016 and then become
eligible for retirement benefits.
REHIRED, NEWLY ELIGIBLE AND
FORMER CALPERS-COVEREDEMPLOYEESYou may not be subject to the PEPRA
maximum (see information to the right),
and your retirement options may differ,
if you:• Previously worked for UC in an eligible
appointment;• Were hired before July 1, 2016 andbecame eligible for retirement benefits
after July 1, 2016; OR• Were a “Classic Member” under
CalPERS and are eligible for reciprocity
with UC.
If you believe you meet or have questions
about these criteria, contact the UC Retirement Administration Service Center(RASC) at 800-888-8267. If you wereclassified as a “Classic Member” under
CalPERS and are also eligible for reciprocity with UC, you need to self-identify bysubmitting the UBEN 300 form (available
on UCnet) to the RASC within 90 days of
becoming a member of the University ofCalifornia Retirement Plan (UCRP).
UNION-REPRESENTED EMPLOYEES
If you’re represented by a union, yourretirement benefits are governed by yourunion’s contract with UC and may bedifferent than the benefits outlined here.
Please refer to your collective bargaining
agreement (available at ucal.us/agreements) for details.

Chapter2.
Your Primary
Title Retirement Benefit Options: Pension Choice or Savings Choice

WHO IS ELIGIBLE FOR RETIREMENTCHOICE?

ABOUT PEPRA AND RETIREMENTEARNINGS MAXIMUMSThe maximum amount of yourcompensation that counts toward
your retirement benefits may beaffected by a number of factors,
including the 2013 California
Public Employees’ Pension ReformAct (PEPRA) maximum, the IRS
dollar maximum and UC guidelines
about eligible pay.
Please note that the Plan year runs
from July 1 to June 30.
PEPRA Pensionable
Earnings Maximum
The maximum salary that counts
toward your pension benefits
is consistent with the maximum
on pensionable earnings for thePlan year under PEPRA. Thismaximum also applies to other
California public pension plans andis reviewed annually and may be
adjusted. For the 2024 Plan year,
the maximum is $151,446.
IRS Pay Maximum
The IRS sets a dollar maximum
for annual earnings for the Plan
year upon which retirement
benefits and contributions may
be based. This maximum is also
reviewed and may be adjusted
annually. For the 2024 Plan year, thismaximum is $345,000.
Eligible Pay
Retirement benefits are calculated
based on “eligible pay,” which does
not include certain types ofcompensation. For a list of typesof compensation that are notconsidered “eligible pay” whencalculating retirement benefits, see
A Complete Guide to Your UC
Retirement Benefits on UCnet(ucal.us/guidetoretirementben).
7Chapter2.
Your Primary
Title Retirement Benefit Options: Pension Choice or Savings Choice

Know Your Options
This at-a-glance summary will give you
the big picture. See pages 10-11 andthe Complete Guide to Retirement
Benefits for details and definitions.
Remember, if you don’t make anelection within 90 days from yourdate of hire (or your eligibility date),
you will be enrolled in Pension Choice— with no option to change yourmind later.

8• Required pretax contributions of 7% of your eligible pay (up to the IRS maximum)
will be deducted from your paycheck; your contributions belong to you.
• UC will contribute to your retirement benefits.
• You’ll earn service credit toward UC’s retiree health benefits.
Here’s a quick comparison of a few very important differences:Pension Choice

Savings Choice

How will I build retirement savings?
You earn service credit toward alifelong pension benefit when you
retire. UC also contributes toward a401(k)-style supplemental account if
you are eligible.
Your pension, through the UC
Retirement Plan (UCRP), is based on aformula that factors in your time at UC,
your age at retirement and yourhighest salary (averaged over three
years, up to the PEPRA maximum).

Your contributions (7% of eligible pay),
contributions from UC (8% of eligible
pay, up to the IRS maximum) and any
investment earnings accumulate in a
tax-deferred retirement account similar
to a 401(k).
You choose your investments from amenu of available funds, and you assume the investment risk. UC provides
educational resources to help you plan.

When do I become eligible for (vest in1) my retirement benefits/savings?
After earning five years of service
credit with UC

After earning one year of service credit
with UC

Disability and survivor benefits
UCRP offers disability and survivor
benefits, including continued UC
health and welfare benefits, for you
and for your survivor(s), depending
on eligibility rules. You can choose
someone to receive lifetime monthly
income upon your death.

Savings Choice does not include
disability or survivor benefits, or thecontinuation of UC health and welfare
coverage often available with such
benefits, as provided under UCRP. You
can designate a beneficiary for youraccount balance and opt for employeepaid disability and/or supplemental life
insurance group coverage.

Can I change my mind later?
No. Whether you actively enroll ordefault into Pension Choice, you may
not switch to Savings Choice.
1

Yes. After five years, you will havean opportunity to switch to Pension
Choice prospectively. See page 17 fordetails.

"Vesting” refers to your right to receive a retirement benefit after you leave the University, subject tothe distribution rules.

9

Chapter2.
Your Primary
Title Retirement Benefit Options: Pension Choice or Savings Choice

Whichever option you choose, once you enroll:2. Your Primary Retirement Benefit Options: Pension Choice or Savings Choice

HOW YOUR OPTIONS COMPARE1PENSION CHOICE
How it Works
Pension Choice includes a monthly pension benefit under the University ofCalifornia Retirement Plan (UCRP), for predictable lifetime retirement income
based on your eligible pay (up to the PEPRA maximum), service credit and age
when you start receiving retirement benefits.
Along with the pension benefit, some faculty and staff are eligible for a supplemental 401(k)-style account, with contributions from you and UC.
UC makes decisions about the investments of the UCRP and assumes theinvestment risk. For the supplemental account, you choose from a menu offunds and you assume the investment risk.
The decision to participate in Pension Choice is irrevocable—you cannot change yourparticipation to Savings Choice later.

Shared Contributions3
You contribute 7% of your eligible pay, before taxes. Contributions on pay
above the PEPRA maximum up to the annual IRS pay maximum go into yoursupplemental account.
UC contributes:
Pension: A percentage of eligible pay (determined by the UC Regents), up to
the PEPRA maximum.
Supplement for designated faculty4: 5% on all eligible pay up to the IRS pay
max.
Supplement for staff and other academic employees: 3% on eligible pay
above the PEPRA maximum, up to the IRS pay maximum.
Your Retirement Income and Benefits
When you vest in (become eligible for) benefits: Your contributions to yourpension and supplemental account (if you have one) are always yours. You
vest in your pension benefits and in UC’s contributions to your supplemental
account once you have earned five years of service credit with UC. You begin toearn service credit when you start making contributions.
Income: When you retire, you receive lifetime monthly income based on yourhighest average 36 months of eligible pay (up to the PEPRA max), your UCRP
service credit, and your age. You can choose a "contingent annuitant" to receive
monthly lifetime income upon your death. Supplemental account distributions
are governed by plan rules. The balance depends on contributions from you andUC and your investments’ performance, and can be left to your beneficiary.
Additional benefits: You may be eligible for retiree health benefits (see ucal.
us/retireehealth) and continuing health benefits for your contingent annuitant(if an eligible survivor) after your death. If you become disabled before retirement, you may be eligible for UCRP disability income and health benefits.
10Chapter2.
Your Primary
Title Retirement Benefit Options: Pension Choice or Savings Choice

SAVINGS CHOICE
How it Works
Savings Choice works much like a 401(k) plan. Your mandatory pretax
contributions, contributions from UC (based on your eligible pay2) and any
investment earnings accumulate in a tax-deferred retirement account. You
choose your investments from a menu of available funds, and you assume theinvestment risk. UC provides educational resources to help you plan.
If you choose Savings Choice, you will have a second opportunity toprospectively enroll in Pension Choice, beginning on the fifth anniversary of
the calendar year you make your election. See page 17.
Shared Contributions3
You contribute 7% of your eligible pay, before taxes, up to the annual IRS pay
maximum. UC contributes 8% of your eligible pay, up to the IRS pay maximum.
Your Retirement Income and Benefits
When you vest in (become eligible for) benefits: Your contributions to youraccount are always yours. UC’s contributions will vest after one year.
Income: You draw money from your account; distributions are governed by planrules. The balance will depend on the amount contributed by you and UC andyour investments’ performance, and can be left to your designated beneficiary.
Additional benefits: You may be eligible for retiree health benefits from UC(see ucal.us/retireehealth). Savings Choice does not include disability benefits
or continuing health benefits for your survivor, but you can choose employeepaid disability and supplemental life insurance.
See A Complete Guide to Your UC Retirement Benefits on UCnet for more information.
Some types of compensation not considered “eligible pay” when calculating retirement benefits are:• Pay that exceeds the full-time rate or established• Pay that exceeds the base salary (X+X’) underbase pay rates for regular, normal positions;the Health Sciences Compensation Plan.
• Overtime pay (unless for compensatory time off);
3
Employer and employee contribution rates are set periodically by the UC Regents. Because UCRP is adefined benefit plan, a member receives a specified payment amount at retirement (based on UCRP
service credit, retirement age and eligible annual pay, up to the applicable maximum), irrespective of
the amount the individual or UC contributes. Provisions of the 2016 Retirement Choice Program aresubject to collective bargaining for represented employees. Please refer to the appropriate collective
bargaining agreement, as benefits and other provisions may vary.
4
In general, you are eligible for the faculty program if you are an academic appointee in one of thefollowing groups.
Employment (excluding UC College of the Law, San• Ladder-rank faculty and equivalent titles
Francisco, Lecturers/Senior Lecturers)(Professorial and Equivalent titles, which include• Adjunct Professor series
Agronomists, Astronomers, Clinical Professor of
Dentistry [over 50%] and Supervisor of Physical Ed) • Health Science Clinical Professor series• Librarians covered by the Professional Librarians• Professor in Residence series
Unit (LX Unit) and Non-Senate Instructional/UC• Professor of Clinical (X) series
AFT (IX), due to specific provisions within their• Acting full, associate and assistant professors• Lecturers/Senior Lecturers (full-time) withcollective bargaining agreement
Security of Employment or Potential Security of12

11Chapter Title

3.

Copy

Pension Choice or Savings Choice:
Which One is Right for You?
Deciding which option is right for you depends
on a number of factors, including your age,the length of time you expect to work for
UC, your personal financial situation, yourinvesting style and risk tolerance, and how
much retirement income you expect fromother sources (e.g., Social Security).
12

CONSIDERPENSION CHOICE
IF YOUCONSIDER
SAVINGS CHOICE
IF YOU• Want predictable and secure• Want a portable retirement benefit
retirement income payments.
(vested after one year) you canroll over into an IRA or another• Expect to work for UC for most of
employer’s retirement plan if you
your career (and at least five years).
leave UC.
• Want the protections offered by the•Don’t know how long you’ll be at
UC Retirement Plan, such as theUC, and prefer the option to switch
option to provide health benefits and
to Pension Choice later.
a secure income for your survivor
and income and health benefits if• Are comfortable choosing andyou become disabled.
managing your retirement
investments.
RESOURCES TO HELP YOU CHOOSE
RETIREMENT DECISION TOOLThis interactive tool helps you weigh your options (including enrolling in Savings
Choice then switching to Pension Choice), considering your age, role, income, howlong you expect to be at UC and when you want to retire. The retirement stories on
page 15 offer examples of estimated retirement benefits generated by the decisiontool.
myUCretirement.com/choose

PERSONAL RETIREMENT COUNSELINGUC offers you free one-on-one, personal help with your retirement benefits
decisions. Talk with a Workplace Financial Consultant when and where it’sconvenient for you.
800-558-9182 Fidelity.com/schedule/UC
WEBINARS
Attend a webinar to learn about your retirement benefit options, understand how
to make your choice and get answers to your questions.
myUCretirement.com/classes/retirementchoice

13

Chapter3.
PensionTitle
Choice or Savings Choice: Which One is Right for You

HOW YOUR OPTIONS COMPARE

Chapter Title

4.

Retirement Stories
Everyone’s circumstances and needs aredifferent, so it’s important to think carefully
about which retirement option is most likely
to help you meet your goals. These retirement
stories illustrate how a few people might
decide, with estimates of their retirement
income from the modeler on myUCretirement.
com/choose.
14

Meet Javier
HEALTH PROFESSIONAL, 37,$160,000/YEAR

ELECTED: PENSION CHOICEELECTED: PENSION CHOICE“Pension Choice was an easy decision forme since I’m confident I’ll be with UC fora long time.”
Estimates of annual retirement income1
at age 65 if they leave UC after:
4 years (before vesting): $12,000
10 years: $65,000
29 years (at 65): $275,000

Meet Mike
ANALYST, 31, $80,000/YEAR“I’m hoping to spend a good portion of
my career at UC, and since my income
is above the PEPRA maximum I’ll also
receive UC contributions to a supplemental account.”
Estimated annual retirement income1 atage 65 if they leave UC after:
4 years (before vesting): $11,000
10 years: $50,000
28 years (at 65): $210,000

Meet Jiro

ELECTED: SAVINGS CHOICE“Since I’m early in my career, I like thefact that I can take my Savings Choiceaccount with me if I leave, and that
I’ll have the opportunity to switch toPension Choice if I stay with UC for five
years.”
Estimated annual retirement income1 atage 65 if they leave UC after:
4 years: $15,000
10 years (switch to Pension Choice at 5
years): $33,000
34 years (at 65; switch to Pension
Choice at 5 years): $235,000

Meet Debra
PROFESSOR, 51, $200,000/YEAR
ELECTED: PENSION CHOICE“The supplemental account I’m eligible
for as a faculty member was a big plus.
Since I plan to stay at UC for the longterm, Pension Choice was the right option for me.”Estimated annual retirement income atage 65 if they leave UC after:
4 years: $8,000
10 years: $60,000
14 years (at age 65): $90,000
1

ASSISTANT PROFESSOR, 42,$100,000/YEAR
ELECTED: SAVINGS CHOICE“My partner hasn’t found a position in
the area yet, so we may need to relocate
before I can vest in the pension. If I’mable to stay at UC, I’ll switch to Pension Choice during my second choicewindow.”
Estimated annual retirement income1 atage 65 if they leave UC after:
4 years (before vesting): $10,000
10 years (switch to Pension Choice at 5
years): $38,000
23 years (at 65; switch to Pension Choice
at 5 years): $135,000
Model your own estimated retirement
income on myUCretirement.com/
choose. If you enroll in Pension Choice,you can run personalized retirement
estimates at retirementatyourservice.
ucop.edu.
1

Estimates are for illustration only and do notguarantee future benefits. Your own experience
will differ. See myUCretirement.com/choose
for details about the assumptions underlying
these estimates. For example, for estimates ofannual income from Savings Choice and fromthe accumulation of UCRP contributions you'dbe entitled to prior to vesting, balances areconverted to a fixed monthly stream of payment
beginning at 65.
15

Chapter4.
Illustrations
Title of Different Choices

Meet Madhu
ASSOCIATE PROFESSOR, 36,$150,000/YEAR

Chapter Title

5.

Making Your Choice
Remember, your enrollment is prospective.
The sooner you enroll in Pension Choiceor Savings Choice, the sooner you startearning retirement benefits (including UC
contributions and service credit). Your
enrollment window closes once you submit
a choice. If you don’t choose a primary
retirement option, you automatically will beenrolled in Pension Choice at the end of the
90-day period.
16

1. Go to myUCretirement.com/choose.
You can begin the tutorial for a quick
refresher on the options, and use aninteractive modeler to compare how
your retirement benefits may growover time with Pension Choice or
Savings Choice.
2. When you’re ready to choose, you’ll
need to log in. If you haven’t alreadyregistered, you’ll be taken to the
NetBenefits site to complete theregistration process.
3. There are several steps before you
make and confirm your choice, withthe option along the way to returnto the tutorial for more information.
Your election is final once you click“confirm choice.”
4. You’ll receive a confirmation
statement—check to ensure it
accurately records your enrollment
in Pension Choice or Savings Choice.
5. Your contributions will begin to
be deducted from your paycheckfollowing your choice (usually within
one to two pay periods).

YOUR SECOND CHOICE
WINDOW
Savings Choice participants have awindow of opportunity to switch
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 the fifth anniversary of
the calendar year in which they
made their initial election.
A move to Pension Choice iseffective on July 1 (the beginning of
the plan year) following yourelection, if your election is
submitted on or before May 31.
A second choice election is achange in your primary retirement
benefits going forward; it is not
retroactive. As of the effective dateof your switch:• Contributions (from you and UC)
to your Savings Choice accountwill stop. Your Savings Choiceaccount balance will remain yours
and you will continue to direct
investments for the account.
• You will begin earning UCRP
service credit toward thecalculation of your pension
benefit. The service credit
you earned as a participant in
Savings Choice will count toward
vesting in UCRP and in yoursupplemental account (if you
have one) and toward your retiree
health benefits.
• If you leave UC and return inan eligible position you will be
automatically enrolled in UCRP.
Enrollment in Pension Choice isirrevocable — you cannot change
your participation to Savings Choicelater.
17

Chapter
5.
Making
Title
Your Choice

READY TO MAKE YOUR SELECTION?

Chapter Title

6.

After You’ve Enrolled: Additional
Opportunities to Save
Once you’ve enrolled in your primary (required)retirement benefits—Pension Choice or
Savings Choice—it’s a good idea to consider
whether you’ll need additional savings toreach your retirement goals. UC’s voluntarysavings opportunities and retirement planningresources can help.
18

RETIREMENT EDUCATION AND
COUNSELING RESOURCES

UC 403(B), 457(B) AND DEFINEDCONTRIBUTION PROGRAMPERSONAL RETIREMENTCOUNSELINGIn addition to your Pension Choice or
Savings Choice benefits, you may wantto save additional money to prepare
for retirement. UC’s voluntary savings
plans — with options for pretax, aftertax and/or Roth contributions — help
you build additional retirement savings
to augment your primary UC retirement benefits, Social Security, andother non-UC retirement income.

Workplace Financial Consultants areavailable to meet with you by phone orin person—at no cost to you.

• UC’s 403(b) and 457(b) Plans let
you add to your retirement savings
with your choice of pretax and/or Roth after-tax contributions.
That means you can make pretax
contributions now and pay taxes
when you withdraw your money, or
you can make after-tax contributions
now and take tax-free withdrawals(including earnings) in retirement(as long as you meet certain
requirements).
• UC’s Defined Contribution Plan lets
you add to your retirement savings
with after-tax contributions. You cantake the money out at any time andonly pay taxes on your investment
earnings.
You can enroll in these plans at any
time. For more information andresources to help you understand youroptions, see “Supplemental Retirement
Benefits” on myUCretirement.com.

800-558-9182
Fidelity.com/schedule/UC
RETIREMENT CLASSES
AND WEBINARS
Onsite classes or webinars offer
information about all of UC’s
retirement plans and programs,
and guidance for saving and investing
wisely. A schedule of upcomingclasses and webinars is available
online.
myUCretirement.com/classes
MYUCRETIREMENT.COM
Explore articles and classes
designed to help you make informed
financial decisions.
myUCretirement.com
UCNET
Your source for information, tools andresources to help you understand yourbenefits and UC.
ucnet.universityofcalifornia.edu
UC RETIREMENT AT YOUR SERVICE(UCRAYS)
Review and manage your UCRP
benefits and beneficiaries.
retirementatyourservice.ucop.edu

19

Chapter
6.
After You’ve
Title Enrolled: Additional Opportunities to Save

VOLUNTARY RETIREMENTSAVINGS PROGRAM

By authority of The Regents, University of California Human
Resources, located in Oakland, administers all benefit plans inaccordance with applicable plan documents and regulations,custodial agreements, University of California Group Insurance
Regulations, group insurance contracts, and state and federallaws. No person is authorized to provide benefits information
not contained in these source documents, and information notcontained in these source documents cannot be relied upon as
having been authorized by The Regents. Source documents areavailable 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 be received. The University of California
intends to continue the benefits described here indefinitely;
however, the benefits of all employees, retirees, and plan
beneficiaries are subject to change or termination at the time ofcontract renewal or at any other time by the University or othergoverning authorities. The University also reserves the right todetermine new premiums, employer contributions and monthly
costs at any time. Health and welfare benefits are not accrued or
vested benefit entitlements. UC’s contribution toward the monthly
cost of the coverage is determined by UC and may change or stop
altogether, and may 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
your 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 an affirmative action/equal opportunity employer. Please
send inquiries regarding the University’s affirmative action andequal opportunity policies for staff to Systemwide AA/EEO Policy
Coordinator, University of California, Office of the President, 1111
Franklin Street, Oakland, CA 94607, and for faculty to the Officeof Academic Personnel and Programs, University of California
Office of the President, 1111 Franklin Street, Oakland, CA 94607.

22M 1375 1/24
1.9870145.108

ERNA