The University of California Board of Regents last week approved a series of actions aimed at ensuring the stability of the UC Retirement Plan, including resumption of UCRP contributions effective July 2007.
In a letter to UC Laboratory employees dated March 9, 2006, UC Vice President for Laboratory Management S. Robert Foley said, "As the proposed effective date is after the transition date to LANS, and since [Laboratory] employees who transfer to the new contractor will no longer be active members of UCRP at that time, they will not be directly impacted. In addition, the proposed action to reinstate contributions will not affect retirees or [Laboratory] employees who choose to go inactive during the transition."
The regents asked for a July 2007 start date and a multi-year contribution strategy in which contribution rates will increase gradually over time.
Both the university and UC employees will be asked to make contributions for the ongoing funding of the UCRP for the first time since the early 1990s.
For represented employees, the reinstatement of contributions to the UCRP is subject to the collective bargaining process. Reinstatement of contributions also is subject to the availability of funding and completion of the state budget process.
Keeping the UCRP fully funded ensures future retirement benefits for all UCRP members and avoids the funding problems that have affected so many other pension plans across the nation.
The regents are expected to hear specific recommendations as to how costs will be shared between active UCRP members and the university, possibly as soon as the May 2006 regents meeting.
For more information, go to UC's special Web site, "The Future of the UC Retirement Plan," which is updated with the latest information. The site also is accessible via the At Your Service Web site.
