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SUBJECT:  UC Regents Approve Additional Retirement Funds

The UC Regents approved at its meeting on November 14, 2002, additional retirement funds for eligible UC employees by way of a special retirement account. The special account, called a Capital Accumulation Provision (CAP), will place the equivalent of 5 percent of the employee's salary into a separate retirement account in the University of California Retirement Plan (UCRP) where it will earn a specified rate of interest (currently 7.5 percent). Employees will have access to the funds when they retire from or leave UC.

To be eligible to receive the CAP accrual credit, an employee must be an active UCRP member on April 1, 2003. This includes a UCRP member on sabbatical or approved leave of absence. More details regarding the 2003 CAP are available at:

http://atyourservice.ucop.edu/news/retirement/regents_approve_funds.html

UC Regents also approved a CAP last year to help offset similarly disappointing salary increases. The 2001 CAP provided eligible employees with 3 percent of salary, at a current interest rate of 7.5 percent, and was effective April 1, 2002. In addition, in the 1990s, when the state's budget was under similar pressure, eligible employees received CAPS to offset disappointing salary increases. In the last 10 years, UC has offered five separate CAP programs.

Questions regarding this Notice may be directed to Jackie Edwards, Benefits Manager, at joedwards@ucsd.edu or at (858) 534-2816.

                                                Rogers Davis
                                                Assistant Vice Chancellor -
                                                Human Resources