UC Retirement Plan
Defined Contribution Plan (DCP) Pre-Taxed plan
The Tax-deferred 403(b) and the 457(b) Deferred Compensation Plan
One of the most generous benefits of UC employment is the University of California Retirement Plan (UCRP). UCRP benefits include lifetime monthly retirement income, disability benefits, survivor income, and death benefits. Your monthly retirement income is determined by a formula based on your age, years of service credit, and your highest average salary at retirement.
Please visit At Your Service UCRP for more information. Please see the appropriate Summary Plan Description for a detailed description of your Retirement Plan:
· UCRP without Social Security
The UC Retirement Savings Program offers a convenient, tax-advantaged way to save for retirement. The Program consists of:
· The Defined Contribution Plan, which consists of the Pretax for voluntary contributions and the taxable portion of rollovers from other employer plans
· The Tax-Deferred 403(b) Plan
· The 457(b) Deferred Compensation Plan
While UC is the administrator of the Retirement Savings Program, Fidelity Retirement Services provides the record keeping and account services for the Program. Visit the Fidelity Retirement Services website or call Fidelity Retirement Services at 1-866-682-7787 for questions about:
· Account Information
· Beneficiaries
· Changing or canceling contributions to 403(b) or 457(b) plans
· Distributions
· Enrolling in 403(b) or 457(b) plans
· 403(b) loans
· Performance Information
· Rollovers
· Transferring Funds
UC is sponsoring several retirement education workshops conducted by Fidelity Retirement Services to help employees learn about investing for retirement and the steps they can take to help ensure retirement readiness. Learn more about the workshops by clicking here.
Defined Contribution Plan (DCP) Pre-Taxed plan
The Defined Contribution Plan (DCP) is a valuable component of the UC Retirement Savings Program offered to UC faculty and staff. The DCP is a retirement savings and investment plan that supplements UC's basic pension plan, the University of California Retirement Plan (UCRP). The DCP consists of two separate accounts, the Pre-Tax Account for mandatory contributions and the After-Tax/Rollover Account for voluntary contributions and the taxable portion of rollovers from other employer plans.
Eligibility
All UC employees including seasonal, part time, temporary and non-exempt employees.
Enrollment
Enrollment is automatic and begins on the first day of an eligible appointment.
Rollovers
General rollovers of pretax amounts are allowed from 401(a), 401(k), 457(b) government plans and 403(b) plans; in addition, rollovers from traditional IRA’s and after-tax amounts from 401(a) plans and 401(k) plans are allowed; rollovers are not allowed from 457(b) private plans.
Investment Options
The UC offers several Core Fund Options
Loans
Loans are not permitted based on current regulations
Distributions while employed
Distributions of pretax accounts are not permitted until you leave UC employment or retire.
Distributions after separating from UC Employment
· Leave your money in the plan if you have over $2,000 in the Plan
· Take a full or partial distribution
· Arrange for systematic withdrawals
· Arrange a rollover into an eligible plan or an IRA
· Purchase an income annuity
Federal and State Income Tax Treatment
A distribution becomes taxable when distributed unless it is rolled over into an eligible plan or an IRA.
Early Distribution Penalties
YES. 10% federal penalty applies if a distribution is received before 59 ½ (some exceptions may apply). State penalties may also apply. Penalties apply to money rolled over from any tax-deferred plan, including a 457(b) plan.
Contributions
How much you contribute is a percentage of your UC earnings. The percentage, between 2% and 7.5%, depends upon your UCRP Membership Classification. In addition, the Internal Revenue Code specifies a dollar limit for annual earnings on which contributions may be made. For specific information about how much your contributions are or will be, see the DCP Summary Plan Description.
Your mandatory contributions to the Defined Contribution Plan are invested in the Savings Fund, unless you redirect the contributions to another fund. For more information about your investment options, contact Fidelity Retirement Services at 1-866-682-7787.
DCP After-Tax Plan
The After-Tax DCP is a voluntary plan. Please click here for more DCP information.
For information about enrolling in the After-tax DCP plan, changing contributions, rollovers, or investment options, visit the Fidelity Retirement Services website or call Fidelity Retirement Services at 1-866-682-7787.
The Tax-deferred 403(b) and the 457(b) Deferred Compensation Plan
All UC employees, except students who normally work fewer than 20 hours per week, are eligible to participate in the Retirement Savings Program, including the 403(b) and 457(b) plans. Participation is voluntary.
For information about enrolling in the 403(b) or 457(b) plans, changing contributions, rollovers, or investment options, visit the Fidelity Retirement Services website or call Fidelity Retirement Services at 1-866-682-7787.
Differences Between the 403(b) and 457(b) Plans
In general, the 403(b) and 457(b) plans are very similar. Some noteworthy differences are that the 403(b) plan offers loans, while the 457(b) does not, and the 457(b) does not have the same penalties for early distribution as the 403(b). For a side by side comparison of the two plans, visit At Your Service Differences Between 403(b) and 457(b).
Please visit At Your Service Retirement Savings Program for general information about the 403(b) and 457(b) plans and see the 403(b) Summary Plan Description and 457(b) Summary Plan Description for more detailed information. Please visit At Your Service Retirement Savings Program or Fidelity Retirement Services for more information about retirement savings plans.
2007 Annual Contribution Limits for 403(b) and 457(b)
Employees who wish to maximize their contributions to the UC Retirement Savings Program’s Tax-Deferred 403(b) and/or 475(b) Deferred Compensation Plans may want to increase contributions for 2007 based on new contribution limits.
For 2008, the Maximum Annual Contribution Limit for each plan will increase to $15,500. For employees who are age 50 by December 31, 2008, the limit is $20,500. In addition, some employees may be eligible to make additional contributions under the lifetime catch-up provisions of the plans. Call Fidelity Retirement Services at 1-866-682-7787 for details.
Enrollments and Changes for 403(b) and 457(b) Plans
Enrollments and changes to your contributions for the 403(b) and 457(b) plans take effect subject to payroll deadlines. Generally, if you enroll or make a change to your 403(b) account by the 15th of the month, your change will take effect on the 1st of the following month. If you enroll or make a change to your 457(b) account by the last day of the month, your change will take effect one month later. The Benefits Office is not authorized to change these effective dates. Please contact Fidelity Retirement Services directly at 1-866-682-7787 for enrollments and changes to your contributions.
