University of California, San Diego
December 8, 2003
SUBJECT: Defined Contribution Plan (DCP) Health Sciences
In October 2001, a Task Force was convened to evaluate the competitiveness of UC health sciences faculty retirement benefits and to make a report of recommendations to senior management. The goal was to provide some measure of retirement coverage on all earnings of health sciences faculty, since under current policy the UCRP Defined Benefit Plan retirement program applies only to base salary.
At this time, it is possible only to offer two choices. One choice is to maintain the current Defined Benefit Plan for covered compensation and to add a Defined Contribution Plan benefit on all additional salary above covered compensation. The other choice is to make no change at all at this time.
The proposal describes a Defined Contribution (DC) Plan benefit program that would apply a mandatory contribution rate of 7% on salary above covered compensation for health sciences faculty. The contribution rate was recommended by the Task Force and endorsed by the Academic Council. The task force report and proposals are accessible for review at: http://www.ucop.edu/acadadv/acadpers/taskforce.html. It would be helpful to have your input on an appropriate contribution rate for the proposed DC Plan. It is important to note that this DC Plan contribution will be paid by the same salary sources that fund earnings beyond covered compensation.
All members of the faculty are invited to review and respond to the proposal as appropriate. This is formal review of the proposed policy. Please provide comment on whether the proposal should be implemented or whether no change should be made at this time to the sciences faculty retirement benefits.
Health Sciences faculty should direct written comments to Ron Espiritu at firstname.lastname@example.org. General campus faculty should direct written comments to Jenni Leibman at email@example.com. Questions regarding the DC Plan proposal should be directed to Jackie Edwards at firstname.lastname@example.org. The deadline for receipt of comments is the close of business February 13, 2004.