UCRP contributions increasing with July 2011 earnings

Faculty and staff may see a change in their next paychecks as both the University of California and its employees start contributing more to the UC Retirement Plan.

The higher contribution rates start with July earnings and will be reflected in paychecks issued between July 22 and August 8, depending on whether employees are paid semi-monthly, monthly, or on a different cycle.

Contributions for most faculty and staff increased 1.5 percentage points, going from roughly 2 percent of pay through June 30 to 3.5 percent of pay now. UC also increased its contribution from 4 percent to 7 percent.

In July 2012, employee contributions will rise to 5 percent and UC will contribute 10 percent.

Every year, the plan incurs costs that are equivalent to about 17 percent of annual pay.

The increased contributions are part of UC’s strategy to ensure the long-term viability of the plan and to address a $14 billion unfunded liability.

The UC Board of Regents approved the contribution increases in September 2010 as part of a larger effort to put UC's retirement benefits on financially sustainable footing.

The increased contribution rates apply to active members of the retirement plan, and are subject to collective bargaining for unionized employees.

For more information, visit the Future of UC Retirement Plan website.

For questions, please contact your Department Benefits Counselor or appropriate HR representative, or HR Benefits at benefits@berkeley.edu.