How does UC retirement plan work?
How does UC retirement plan work?
When you retire, you will receive lifetime monthly retirement income from UCRP — calculated as a percentage of your average eligible annual pay, or HAPC (highest average plan compensation), up to the PEPRA maximum. The percentage is based on your service credit and age at retirement.
Do UC employees get pension?
For most eligible UC employees hired, rehired or newly eligible for benefits on or after July 1, 2016, UC offers two different primary retirement benefit options: Pension Choice or Savings Choice. Elected Pension Choice or Savings Choice, or were defaulted into Pension Choice, during a prior period of UC employment.
How much does UC contribute to retirement?
See ucal.us/secondchoice for details. You contribute 7% of your eligible pay, before taxes, up to the annual IRS pay maximum ($305,000 for 2022; see page 4 for more information). UC contributes 8% of your eligible pay, up to the IRS pay maximum.
What is a UC retiree?
UCRP is a traditional pension plan, providing a predictable level of income when you retire. UC employees who are members of UCRP are governed by the 1976 Tier, 2013 Tier or 2016 Tier plan provisions. If you were hired prior to July 1, 2013 and have continuous employment, you’re most likely a member of the 1976 Tier.
Is UC retirement income taxable?
Any money withdrawn from your UC 403(b), 457(b), or DC Plans or a traditional IRA, for instance, will be taxed as ordinary income. If those withdrawals are made in addition to other taxable income (from, say, your UCRP pension plan), they may increase your tax bill and possibly push you into a higher tax bracket.
Are UC employees eligible for Social Security?
Most UC retirees are eligible for Social Security and Medicare benefits.
Is UC retirement part of CalPERS?
UC has a reciprocal retirement agreement with CalPERS, California Public Retirees System. Reciprocity applies to retirement benefits only; health benefits into retirement are determined by the provisions of the individual plans.
When can I retire from UC?
You can retire and receive UC benefits any time after you become eligible — that is, when you have at least five years of UC Retirement Plan service credit and reach age 50 or 55, depending on which tier of the pension plan you’re in.
How long does it take to get my pension lump sum?
around four to five weeks
How long does it take to receive a pension lump sum? Usually it will take around four to five weeks from the date of your request for your pension provider to release your lump sum.