UCRP 2010 Contribution Restart Proposed
[January 29, 2009]
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Feb. 5, 2009 Regents Action Item
[January 29, 2009]
Retirement Benefits Are an Important Part of UC’s Total Compensation
UC is committed to providing competitive total compensation to all employees and UC’s retirement benefits are an important component in attracting and retaining high-quality people to the University. Accordingly, maintaining a stable and beneficial retirement plan for all UC employees is critical and requires careful planning for its future.
Contributions to the UCRP Will Once Again Be Necessary
Thanks to prudent management and good market performance of the UC Retirement Plan’s investments for many years, a large surplus of assets accrued in the pension fund, and this surplus has been able to support the ongoing costs of the plan. As a result, no employee or employer contributions to the UCRP have been necessary since the early 1990's.
Because there have been no contributions made to the UCRP for 18 years, the surplus has been steadily declining, thus contributions will need to be reinstated to ensure the plan remains 100 percent funded.
The chart below shows the steady decline in the UCRP funding surplus. If contributions are not reinstated in the near future, the UCRP funded status is projected to drop below 100 percent within the next several years.
Preparing for the Diverse Needs of UC’s Workforce
UC Regents will be exploring the best way to begin reinstatement of contributions to the UCRP and how to best meet the diverse needs of UC's workforce. Although it is still early in the process, UC is committed to keeping employees and retirees informed about any changes planned for UC retirement benefits. Please return to this site for updates and additional information as it becomes available.
For represented employees, the changes being contemplated will be subject to collective bargaining with their respective union.