Neither the Regents of the University of California nor
any ofﬁcer or afﬁliated ofﬁcer of the University makes any
recommendation to participants for building supplemental
retirement savings, and the various options available for con-
tributions should not be construed in any respect as judgment
regarding the prudence or advisability of such investments or
as tax advice.
By authority of the Regents, University of California Human
Resources and Beneﬁts, located in Oakland, administers all
beneﬁt plans in accordance with applicable plan documents
and regulations, custodial agreements, University of California University of California
Group Insurance Regulations, group insurance contracts, and
state and federal laws. No person is authorized to provide Deﬁned Contribution Plan
beneﬁts information not contained in these source documents,
and information not contained in these source documents can-
not be relied upon as having been authorized by the Regents.
Source documents are available for inspection upon request
(1-800-888-8267). What is written here does not constitute a
guarantee of plan coverage or beneﬁts—particular rules and
Safe Harbor Participants:
eligibility requirements must be met before beneﬁts can be
received. The University of California intends to continue the
beneﬁts described here indeﬁnitely; however, the beneﬁts of ➣ Part-time,
all employees, retirees, and plan beneﬁciaries are subject to
change or termination at the time of contract renewal or at
➣ Seasonal, and
any other time by the University or other governing authori- ➣ Temporary
ties. The University also reserves the right to determine new
premiums, employer contributions and monthly costs at any UC Employees
time. Health and welfare beneﬁts are not accrued or vested and
beneﬁt entitlements. UC’s contribution toward the monthly
cost of the coverage is determined by UC and may change or ➣ Non-exempt
stop altogether, and may be affected by the state of California’s
annual budget appropriation. If you belong to an exclusively
represented bargaining unit, some of your beneﬁts may differ
from the ones described here. Contact your Human Resources
Ofﬁce for more information.
In conformance with applicable law and University policy, the
University is an afﬁrmative action/equal opportunity employ-
er. Please send inquiries regarding the University’s afﬁrmative
action and equal opportunity policies for staff to Director of
Diversity and Employee Programs, University of California
Ofﬁce of the President, 300 Lakeside Drive, Oakland, CA 94612
and for faculty to Director of Academic Afﬁrmative Action,
University of California Ofﬁce of the President, 1111 Franklin
Street, Oakland, CA 94607.
Website address: http://atyourservice.ucop.edu
University of California
Human Resources and Beneﬁts
P.O. Box 24570
Oakland, CA 94623-1570
16M 1102 1/05
To satisfy state and federal requirements, certain Note—employees with limited appointments,
University of California employees who are not employees in contract positions, employees in
otherwise covered by a retirement system contrib- “noncareer” positions at the Department of Energy
ute to the University of California Deﬁned laboratories, and certain academic appointees may
Contribution Plan (the DC Plan or the Plan) in lieu become eligible for UCRP membership after
of paying Social Security taxes. The DC Plan is working 1,000 hours in a rolling, continuous
qualiﬁed under section 401(a) of the Internal 12-month period. (Members of the Non-Senate
Revenue Code (IRC). Administered by the Univer- Instructional Unit qualify for UCRP membership
sity of California Retirement System (UCRS) for after working 750 hours in an eligible position.)
the sole beneﬁt of participants and their beneﬁ- Once an employee becomes a UCRP member,
ciaries, the DC Plan provides retirement beneﬁts mandatory Safe Harbor participation in the DC
based on participants’ contributions, plus earnings. Plan stops automatically.
Participation in the Plan is mandatory as a condi-
tion of employment. Part-time, seasonal, and 2. Are any employees exempt from
temporary employees, as well as non-exempt mandatory DC Plan participation?
student employees, who participate in the DC Plan Yes. Federal law does not require the following
under this arrangement are called Safe Harbor employees to contribute:
• Registered UC students working for the
Please read this brochure for information about the University who are enrolled in the campus
DC Plan and the impact of participation on your required minimum courseload (exempt student
current salary and future retirement beneﬁts. employees);
Questions about eligibility for DC Plan partici- • Nonresident aliens with F-1 or J-1 visa status; and
pation should be directed to the person in your
• Nonresident aliens living and working outside
department, laboratory or medical center who is
of the United States
responsible for handling beneﬁts.
3. When do I enroll in the Plan and how
1. Who must contribute to the DC Plan? much am I required to contribute?
UC employees who are currently excluded from DC Plan enrollment is automatic and begins the
membership in the University of California Retire- ﬁrst day of an eligible appointment. The manda-
ment Plan (UCRP) because of their appointment. tory Safe Harbor contribution rate is 7.50 percent
This includes the following: of wages. Contributions are deducted from your
• Employees working in Per Diem, Floater, or salary before income taxes are calculated, reducing
Casual Restricted appointments; your taxable income. The net effect is that you pay
• Academics hired as visiting appointees after less in current federal and state income taxes.
August 1, 1989;
4. What happens to my DC Plan
• Regents’ Professors or Regents’ Lecturers;
• Housestaff (medical residents); and
Your contributions to the DC Plan are automati-
• UC student employees who are not enrolled cally invested in the Savings Fund, one of six
in the campus required minimum courseload, investment funds managed by the University
regardless of their UC appointment percentage Treasurer’s Ofﬁce. You may, however, direct
(non-exempt student employees) contributions to one of the other ﬁve UC-managed
investment funds or to Fidelity Investments • Treasury Inﬂation-Protected Securities Fund
mutual funds (see question #6). You may contrib- (TIPS)—seeks to provide long-term total return
ute to one of the UC-managed funds or to Fidelity, and inﬂation protection consistent with an
but not to both. investment in U.S. government inﬂation-in-
dexed securities. Inﬂation-indexed securities are
See chart, “For Information and Transactions,” at
designed to protect future purchasing power.
the end of this brochure.
• Insurance Company Contract Fund (ICC)—seeks
5. What is the UC-managed Savings Fund? to maximize interest income while protecting prin-
cipal. Invests in pooled insurance contracts issued
The Savings Fund seeks to maximize interest
by select, highly rated insurance companies.
income while protecting principal. The Fund in-
vests in government, government-guaranteed, and Yet another investment option is Fidelity
government agency securities with maturities of Investments mutual funds.
ﬁve years or less.
7. Can I transfer all or part of my Plan
6. What are my other investment options? balance among the diﬀerent investment
In addition to the Savings Fund, the UC
Treasurer manages ﬁve other funds with different Yes. Although you may direct contributions to only
investment objectives and portfolio characteristics. one UC-managed investment fund at a time, you
Brieﬂy, the funds are as follows: may transfer money you’ve accumulated among
the investment fund options as often as once
• Equity Fund—seeks to maximize long-term a month. You may not, however, transfer money
capital appreciation with moderate risk. Histori- directly between the UC-managed Insurance
cal focus on large-capitalization stocks; currently Company Contract Fund and the Savings Fund.
expanding to include a range of equity strategies;
small representation in private equities. See the chart at the end of this brochure for
• Bond Fund—seeks to maximize real (adjusted
for inﬂation) long-term total return through a
combination of interest income and price appre- 8. Are participants charged any
ciation. Invests in high-quality government and administrative fees?
corporate bonds (U.S. and foreign). Not directly. Currently, an administrative fee equal
• Balanced Growth Fund—seeks to provide long- to .0125 percent is deducted from the total monthly
term growth and income through a balanced earnings of each UC investment fund. Fidelity’s
portfolio of equity and ﬁxed-income securities management fee structure is described in the
held within the UC-managed Equity, Bond and prospectus for each fund. No fees are deducted
TIPS funds. The Fund is rebalanced monthly to from individual participants’ accounts.
prevent the three component funds in which it
is invested (65 percent Equity, 30 percent Bond 9. Can I temporarily suspend my
and 5 percent TIPS) from growing outside their contributions?
allocation percentages. The Fund is subject No. Federal regulations require you to contribute a
to ﬂuctuating prices in the equity and percentage of income to a retirement system or an
ﬁxed-income markets. equivalent plan “as services are performed.”
As long as you are subject to the Safe Harbor
provisions, contributions will be deducted from (http://atyourservice.ucop.edu). See the chart at
your pay. DC Plan contributions will stop only if the end of this brochure for website instructions.
you leave UC employment, go on leave without
Fidelity sends quarterly statements of account
pay or furlough or if your appointment changes
and you become eligible for membership in UCRP
(see question #21). Contributions from non-exempt
student employees will stop if a change in their
14. When can I receive my DC Plan money?
courseload later exempts them from Plan The IRC permits participants to take a distribu-
participation. tion from the DC Plan Pretax Account only when
they are no longer working for UC in any capacity.
10. Will UC match my DC Plan This rule also applies to student employees who,
contributions? because of a change in their courseload, become
exempt from Plan participation but are still
No. Generally there is no matching employer con-
employed by UC in any wage-earning capacity.
tribution; retirement beneﬁts from the DC Plan are
Documentation indicating your separation date
based exclusively on participants’ contributions,
is required. Also note that if you leave UC
plus any earnings.
employment and request a distribution, but are
reemployed by UC before the distribution is paid,
11. Will my participation in the DC Plan you may be ineligible to receive the distribution.
aﬀect any IRA contributions I make?
Participation in the DC Plan may affect the income 15. What options do I have for my money
tax deductibility of any contributions you make when I leave UC employment?
to a traditional IRA. IRA contributions may still
If you leave UC employment:
qualify for a full or partial income tax deduction,
depending on your adjusted gross income and tax • If your total plan balance is less than $2,000, you
ﬁling status. You may also make nondeductible must take your money when you leave—you
contributions to an IRA and defer taxes on the may request a distribution to be paid to you or
earnings. Check with your tax advisor. arrange for a direct rollover of your money to
a traditional IRA or other employer plan (see
12. What are the vesting rules for DC Plan question #16).
participants? • If your total plan balance is $2,000 or more,
DC Plan participants are fully vested as soon as you may keep your money in the plan with
they begin contributing to the Plan. Vesting refers continued preferential tax treatment.
to the point at which you have nonforfeitable own- • If you are eligible (see question #19), you may
ership of your contributions (plus any earnings). receive retirement income from the plan.
13. How can I obtain information about 16. What are the distribution options?
my DC Plan account activity? You must choose how you want your money
Personalized account information is available distributed before UC will issue your check. Your
online 24 hours a day, seven days a week. UC choice will affect the amount of tax withheld from
HR/Beneﬁts provides secure account data over your distribution.
the Internet on its website, At Your Service • If you want a distribution paid to you,
20 percent will be withheld for federal taxes.
No exceptions. Note that if you are under age 18. Can my participation in the DC Plan
59½, a distribution paid to you may be subject aﬀect future Social Security beneﬁts to
to federal and state early distribution penalties which I may become entitled?
in addition to ordinary income taxes. The early
Under Social Security rules, the pension you
distribution penalties are substantial—currently
receive based on work in a government job (UC
a 10 percent federal tax and a 2½ percent
is considered a “government” employer) that was
California state tax.
not covered by Social Security may reduce Social
• If you arrange for a direct rollover of the distri- Security beneﬁts that you may receive based on
bution to a traditional IRA or other employer Social Security-covered jobs. Details are online at
plans that accept rollovers, no taxes will be the Social Security website (www.socialsecurity.
withheld nor will the distribution be subject to gov /gpo-wep) under “Government Pension
early distribution penalties. UC will make the Offset” and “Windfall Elimination Provision.”
check payable to the recipient IRA or plan
and mail it to you. You are responsible for 19. When can I receive retirement income
depositing the money in the IRA or plan. from the DC Plan and what options do I
Before withdrawing your money, you should read have?
the Special Tax Notice for Plan Distributions. The You may receive retirement income from the DC
notice explains the potential tax impacts of your Plan after you leave UC employment if you are
distribution, depending on your personal circum- age 50 or older. There are two retirement income
stances and whether you have the distribution options at UC:
paid to you or directly rolled over to an IRA or
another employer-sponsored plan. • monthly systematic withdrawals from your
Plan balance; and
See the chart at the end of this brochure for infor-
mation on procedures and how to obtain a copy of • commercial annuities you can arrange to buy
the Special Tax Notice for Plan Distributions. through UC’s group contract with a California-
licensed, third-party insurance carrier.
17. How are distribution requests Alternatively, you may take a lump sum distri-
processed? bution (subject to tax withholding) and purchase
an annuity on your own from the insurance carrier
Distribution checks are issued around the 7th and
of your choice.
the 23rd of each month.
Although you are eligible for retirement income
The date your check is issued will depend on when
from the Plan when you leave UC employment
you request the distribution and any recent payroll
and reach age 50, early distribution penalties may
activity. Cutoff dates are generally the 21st and
apply if you are under age 55 when you leave. If
the 25th of each month, as shown in the following
you choose a life annuity, however, the money will
be exempt from the early distribution penalties.
Distribution Account Check
For information about retirement income options
Requested Valued Mailed
at Fidelity, contact them directly (see question #26).
April 26–May 21 May 31 June 23
May 22–May 25 May 31 July 7
May 26–June 21 June 30 July 23
20. What happens to my DC Plan according to that formula (the percentage varies
accumulations if I die before I retire depending on UCRP membership status). Your
or leave UC employment? contributions will be automatically deposited in
the Savings Fund, unless you redirect them to
If you die before you retire or leave UC employment,
another fund (see question #4).
your DC Plan accumulations will be payable in a
lump sum to your beneﬁciary. Therefore, you should
designate a beneﬁciary to receive your DC Plan accu- 22. What happens to money I have
mulations. Your beneﬁciary may be a person, trustee accumulated in the Plan as a non-exempt
or organization. You may also name more than one student employee if I return to exempt
beneﬁciary and specify the percentage of your status?
accumulations that each beneﬁciary is to receive. Likewise, your accumulations will remain in the
Plan, and you will continue to accrue earnings
See the chart at the end of this brochure for
on your Safe Harbor account balance. If you later
information about naming a beneﬁciary.
return to non-exempt student status and resume
If you don’t designate a beneﬁciary, or if your contributions to the DC Plan, your future contribu-
beneﬁciary dies before you do, your DC Plan tions will be deposited in the investment fund you
accumulations will be paid to your survivors in the previously designated. (If you made no previous
following order of succession: fund designation, your contributions will be
automatically deposited in the UC Savings Fund.)
• surviving legal spouse or surviving domestic
partner; or, if none,
23. If I go to work for another employer,
• surviving children, natural or adopted, on an
can I roll over my DC Plan balance to my
equal-share basis (children of a deceased child
new employer-sponsored plan?
share their parent’s beneﬁt); or, if none,
Yes. Your DC Plan savings are portable; when you
• surviving parents on an equal-share basis; or if
leave UC employment, you can roll over your
account balance into another employer’s plan if
• brothers and sisters on an equal-share basis; or, they accept rollovers or into a traditional IRA, and
if none, retain the tax-deferred status of the money. There
• your estate. are speciﬁc tax rules that apply to money being
rolled over into a new plan or IRA.
21. What happens to my money in the
DC Plan if I become eligible for UCRP 24. If I move from California to another
membership? state, will a distribution of my DC Plan
The money you accumulated in the DC Plan as a accumulations be subject to California
Safe Harbor participant will remain in the Plan. state income taxes?
You will continue to accrue earnings on your Safe No. Unless you are a resident of California when
Harbor account balance. you receive the distribution, it will not be subject
to California state tax. Check with your local state
Currently, UCRP members contribute a percent-
tax agency about your state tax liability.
age of their covered compensation to the DC Plan
Pretax Account. Once you become eligible for
UCRP membership, you will begin contributing
25. Who should I notify about a change in Questions about campus required minimum
my address? courseloads for student employees should be
directed to student advisors or campus
See the chart at the end of this brochure for
For answers to questions about DC Plan money
26. Who should I contact if I have other invested at Fidelity Investments, call one of their
questions? Retirement Service Specialists at 1-800-343-0860.
If you have other questions about DC Plan partici-
pation, call your local Beneﬁts Ofﬁce.
For Information and Transactions
HR/Beneﬁts Website See chart below if you need to set or reset your
Go to the UC HR/Beneﬁts website (At Your password.
Service) at http://atyourservice.ucop.edu. To The UC HR/Beneﬁts Customer Service Center
obtain personal information or to make online can be reached at 1-800-888-8267 from 8:30 a.m. to
transactions, you will need your username or 4:30 p.m. weekdays.
Social Security number and your UC password.
At Your Service Website Other
Set or reset your UC password Select “Forgot Your Password?” If you can’t use the online option, call your local
on home page Beneﬁts Ofﬁce.
Redirect contributions among Under “Your Beneﬁts Online,” select If you can’t use the online option, complete a
investment funds “Begin/Change Plan Contributions” Fund Designation—Deﬁned Contribution Plan Pretax
Account form (UPAY 752)—available from local
departments or Beneﬁts Ofﬁces.
Transfer money among Under “Your Beneﬁts Online,” select If you can’t use the online option, complete a
UC-managed funds “Transfer UC Fund Balances” Transfer Request—Deﬁned Contribution Plan and
Tax-Deferred 403(b) Plan form (U5637T)—available
on At Your Service or from local departments,
Beneﬁts Ofﬁces, or the UC Customer Service
At Your Service Website Other
Transfer money between N/A Complete a Transfer Request—Deﬁned Contribu-
UC funds and Fidelity tion Plan/Fidelity Investments Mutual Funds form
(U5641T)—available on At Your Service or from
local departments, Beneﬁts Ofﬁces, or the UC
Customer Service Center.
Individual account information Under “Your Beneﬁts Online,” select N/A
“View UCRS Account Balances” or
“View Your Beneﬁts Summary”
Request distributions from Under “Your Beneﬁts Online,” select N/A
UC funds “Request a Distribution”
• Non-exempt student N/A Complete the form in the UCRS Distribution Kit for
employees Non-exempt Student Employees (UBEN 200)—
available on At Your Service or from local
departments, Beneﬁts Ofﬁces, or the UC Customer
Obtain Special Tax Notice for Under “Forms and Publications,” go Request a copy from the UC Customer Service
Plan Distributions to “By Title” and select Special Center.
Tax Notice for Plan Distributions
Request distributions from N/A Call a Fidelity Retirement Service Specialist at
Name a beneﬁciary Select “Your Beneﬁts Online” and Complete form UBEN 116 (Designation of
go to “Your Beneﬁciaries” under Beneﬁciary—Employees). Retirees, former
“Quick Links” employees, and others must use form UBEN 117
to name retirement/savings plan beneﬁciaries.
These forms are available on At Your Service or
from local departments, Beneﬁts Ofﬁces, or the
UC Customer Service Center.
Change your address
• Active employees Go to UC For Yourself at Notify your local Payroll Ofﬁce.
• No longer working at UC or N/A Complete a UC Beneﬁts Address Change form
retired (UBEN 131)—available on At Your Service or from
local departments, Beneﬁts Ofﬁces, or the UC
Customer Service Center, or write to:
UC Human Resources and Beneﬁts
Attn: Mail Services Unit
P.O. Box 24570
Oakland, CA 94623-1570