Chapter Title
RETIREMENTBENEFITS DECISION GUIDE—REHIRED, NEWLY ELIGIBLE AND FORMER CALPERS-COVERED EMPLOYEESRetirement BenefitsDecision Guide
For rehired or newly eligible employees who
worked for UC before July 1, 2016, and former
CalPERS-covered employees

1Our people make UC great, and we pride
ourselves on being a place where everyone
feels valued and recognized for theircontributions.
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 tointerpret disputed provisions.
3

Introduction

Your UC Retirement Benefits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.
Getting
Title
StartedYour 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❑ GET HELP

Whether you choose Pension
Choice (a lifetime pension benefit)
or Savings Choice (a 401(k)-likeaccount), you and UC will bothcontribute to your retirement. ButPension Choice and Savings Choice
work very differently — and if youchoose (or default into) Pension
Choice, you can’t change your mind
later.

You don’t have to do this alone!
Take advantage of webinars andcounseling from UC to help you
make the right retirement choices
for you.

HOW EACH OPTION WORKSMEET WITH A WORKPLACEFINANCIAL CONSULTANTPages 6–9
FIND DEFINITIONS AND DETAILSATTEND A WEBINAR
myucretirement.com/Classes/RetirementChoice

800-558-9182 orFidelity.com/schedule/UC

ucal.us/guidetoretirementben
MODEL YOUR OPTIONS
myUCretirement.com/choose❑ 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 anoverview of who’s eligible for these benefits,
how each option works, and how long you
have to make your choice. For completedetails, please see the Summary PlanDescriptions.
6You are eligible for the choice ofprimary retirement benefits describedin this guide if you:
• Are a prior active member of UCRP
who was rehired on or after
July 1, 2016 into an eligible faculty
or staff appointment, after aqualified break in UC service(between one and two months);• Were hired by UC before July 1, 2016
and became eligible for retirement
choice benefits on or after that date;OR• Were hired by UC on or after
July 1, 2016 and are classified as a“Classic Member” under CalPERS
eligible for reciprocity with UC. If so,
you will need to self-identify with
the UC Retirement Administration
Service Center (800-888-8267) toensure you are enrolled in theappropriate benefits.
Note: If you are eligible for retirement
choice and you do not meet theconditions above, please refer to theRetirement Benefits Decision Guide forfaculty and staff hired on or after
July 1, 2016 (ucal.us/decisionguide).
If you have questions about youreligibility, please contact the UC
Retirement Administration Service
Center at 800-888-8267.

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

ELIGIBILITYABOUT RETIREMENTEARNINGS MAXIMUMSThe maximum amount of yourcompensation that counts
toward your retirement benefits
may be affected by a number offactors, including the IRS dollar
maximum and UC guidelines
about eligible pay.
Please note that the Plan year
runs from July 1 to June 30.
IRS Pay Maximum
The IRS sets a dollar maximum
for annual earnings for the Planyear upon which retirement
benefits and contributions may bebased. This maximum is reviewed
and may be adjusted annually. For
the 2024 Plan year, this maximum
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).

UNION-REPRESENTED EMPLOYEES
If you’re represented by a union, yourretirement benefits are governed byyour union’s contract with UC and may
be different than the benefits outlined
here. Please refer to your collective
bargaining agreement (available atucal.us/agreements) for details.

7

2. Your Primary Retirement Benefit Options: Pension Choice or Savings Choice

Copy
HOW YOUR OPTIONS COMPARE1PENSION CHOICE
How it Works
Pension Choice includes a monthly pension benefit under the University of California Retirement Plan (UCRP), for predictable lifetime retirement income basedon your eligible pay, service credit and age when you start receiving retirement
benefits. UC makes decisions about the investments of the UCRP and assumes
the investment risk.
The decision to participate in Pension Choice is irrevocable — you cannotchange your participation to Savings Choice later.
Shared Contributions3
You contribute 7% of your eligible pay, before taxes, up to the annual IRS pay
maximum. Your 7% contribution will be automatically deducted from yourpaycheck. Your contributions always belong to you.
UC contributes a percentage of eligible pay to UCRP, as determined by the UC
Regents, up to the IRS pay maximum.
Your Retirement Income and Benefits
When you vest in (become eligible for) benefits: Your contributions to yourpension are always yours. You vest in your pension benefits once you have earned
five years of UCRP service credit. You begin to earn 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, your UCRP service credit, and yourage. You can choose a “contingent annuitant” to receive monthly lifetime income
upon your death.
Additional benefits: You may be eligible for retiree health benefits (see ucal. us/retireehealth) and continuing health benefits for your contingent annuitant (ifeligible) after your death. If you become disabled before retirement, you may beeligible for UCRP disability income and health8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 yourinvestments from a menu of available funds, and you assume the investment risk.
UC provides educational resources to help you plan.
If you choose Savings Choice, you will have a second opportunity to prospectively enroll in Pension Choice, beginning on the fifth anniversary of thecalendar year you make your election. See page 13.
Shared Contributions3
You contribute 7% of your eligible pay, before taxes, up to the annual IRS pay
maximum. Your 7% contribution will be automatically deducted from your paycheck.
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 (seeucal.us/retireehealth). Savings Choice does not include disability benefits or continuing health benefits for your survivor, but you can choose employee-paiddisability and supplemental life insurance.

1

See A Complete Guide to Your UC Retirement Benefits on UCnet for more information.

2

Some types of compensation not considered “eligible pay” when calculating retirement benefits are:• Pay that exceeds the full-time rate or establishedbase pay rates for regular, normal positions;• Overtime pay (unless for compensatory time off);• Pay that exceeds the base salary (X+X’) underthe Health Sciences Compensation Plan.

For more about eligible pay, see A Complete Guide to Your UC Retirement Benefits on UCnet	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 theamount the individual or UC contributes. Provisions of the Retirement Choice Program are subject tocollective bargaining for represented employees. Please refer to the appropriate collective bargaining
agreement, as benefits and other provisions may vary.

39Chapter
2.
Your Primary
Title Retirement Benefit Options: Pension Choice or Savings Choice

SAVINGS CHOICE

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 towork for UC, your personal financial situation,
your investing style and risk tolerance, andhow much retirement income you expectfrom other sources (e.g., Social Security).
10CONSIDERPENSION CHOICE
IF YOUCONSIDERSAVINGS CHOICEIF YOU• Want predictable and secure
retirement income payments.

• Want a portable retirement benefit(vested after one year) you canroll over into an IRA or another
employer’s retirement plan if youleave UC.

• Expect to work for UC for most ofyour career (and at least five years).

• 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 andto Pension Choice later.
a secure income for your survivor• Are comfortable choosing andand income and health benefits if
managing your retirement
you become disabled.
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.
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/UCWEBINARS
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/retirementchoice11

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

HOW YOUR OPTIONS COMPARE

Chapter Title

4.

Making Your Choice
Remember, your enrollment is prospective.
The sooner you enroll in Pension Choice orSavings Choice, the sooner you start receiving
UC contributions (and service credit underPension Choice). Your enrollment windowcloses once you submit a choice. If you don’tchoose a primary retirement option, you
automatically will be enrolled in Pension
Choice at the end of the 90-day period.
12

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 orSavings Choice.
2. When you’re ready to choose, you’llneed to log in. If you haven’t alreadyregistered, you’ll be taken to theNetBenefits 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 tobe deducted from your paycheckfollowing your choice (usually withinone to two pay periods).

YOUR SECOND CHOICE
WINDOW:
Enrollment in Pension Choice isirrevocable — you cannot change
your participation to Savings Choicelater.
Savings Choice participants have awindow of opportunity to switch
prospectively from Savings Choice toPension Choice, and become
members of the UC Retirement Plan(UCRP). The second choice windowfor Savings Choice participants
opens on the fifth anniversary of thecalendar year in which they madetheir initial election.
A move from Savings Choice toPension Choice is effective on July 1(the beginning of the plan year)
following your election, if yourelection is postmarked on or before
May 31.
A switch from Savings Choice toPension Choice is a change in yourprimary retirement benefits goingforward; it is not retroactive. As ofthe effective date of your switch:Contributions (from you and UC) toyour Savings Choice account willstop. Your Savings Choice accountbalance will remain yours.
You will begin earning UCRP service
credit toward the calculation of yourpension benefit. The service credit
you earned as a participant inSavings Choice will count towardvesting in UCRP and toward yourretiree health benefits.
You will remain in the pension planfor the remainder of your career,even if you separate from UC andreturn later.

13

Chapter
4.
MakingTitle
Your Choice

READY TO MAKE YOUR SELECTION?

Chapter Title

5.

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 additionalsavings to reach your retirement goals.
UC’s voluntary savings opportunities andretirement planning resources can help.
14

RETIREMENT EDUCATION AND
COUNSELING RESOURCES

UC 403(b), 457(b) AND DEFINEDCONTRIBUTION PLANSPERSONAL RETIREMENTCOUNSELINGIn addition to your primary (required)retirement benefits, you may want tosave additional money to prepare forretirement. 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 anytime. 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 forsaving and investing wisely. A scheduleof upcoming classes and webinars isavailable 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

15

Chapter5.
After You’ve
Title Enrolled: Additional Opportunities to Save

VOLUNTARY RETIREMENTSAVINGS PLANSBy authority of the Regents, University of California Human
Resources, located in Oakland, administers all benefit plans inaccordance with applicable plan documents and regulations, custodialagreements, University of California Group Insurance Regulations,group insurance contracts, and state and federal laws. No person isauthorized 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 theRegents. Source documents are available for inspection upon request(800-888-8267). What is written here does not constitute a guaranteeof plan coverage or benefits — particular rules and eligibility
requirements must be met before benefits can be received. TheUniversity of California intends to continue the benefits describedhere indefinitely; however, the benefits of all employees, retirees, andplan 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 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, theUniversity is an affirmative action/equal opportunity employer. Please
send inquiries regarding the University’s affirmative action and equal
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 Office of Academic
Personnel and Programs, University of California Office of thePresident, 1111 Franklin Street, Oakland, CA 94607.

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