February 12, 2016
The Office of the President invites feedback on the recommendations for future retirement benefit options that the systemwide Retirements Options Task Force appointed by President Napolitano developed. The task force report is available at the following Website: http://blink.ucsd.edu/go/2016-retirement-benefits-rotf .
As part of the 2015-2016 budget agreement between UC, the Governor, and the Legislature, the State of California will provide $436 million to UC for the UC Retirement Plan (UCRP) over the next three years. In return for this funding commitment, UC must implement a new pension tier for employees hired on or after July 1, 2016, to match the limits on covered compensation imposed on State retirement plans under the Public Employees’ Pension Reform Act (PEPRA), enacted in 2013.
The new retirement benefits will apply only to future UC employees hired on or after July 1, 2016. Retirement benefits for current employees and retirees will not be affected. Retirement benefit changes for union-represented employees will be effective upon completion of the collective bargaining process.
Key priorities for UC in designing a new set of retirement benefits include:
Ensuring UC’s long-term financial stability that, among other things, maintains the financial stability of UCRP for current and future employees and allows for regular salary/merit increases for faculty and staff;
Maintaining the competitiveness of overall compensation for UC faculty and staff;
Facilitating appropriate levels of shared responsibility between UC and employees for individual retirement readiness, and providing programs that help employees prepare for retirement.
I encourage you to provide feedback no later than February 16, 2016 directly to the Office of the President through its dedicated Website http://blink.ucsd.edu/go/2016-retirement-benefits-comments. The president will use the community feedback to help inform the proposal she is expected to bring to the UC Board of Regents in March for a vote.