The UC systemwide Academic Senate’s University Committee on Faculty Welfare Task Force on Investment and Retirement (UCFW-TFIR) developed a planning model to help new UC employees hired after July 1, 2016 make informed retirement plan decisions. The systemwide Academic Council has endorsed the model, agreeing that it will be valuable to UC employees, particularly new and junior faculty and staff.
Eligible members of the Academic Senate (and certain staff titles) who make the “Savings Choice” initially will have the option to switch to the “Pension Choice” after 5-8 years of service. Because it is not in the reverse direction, careful decision-making is essential.
The model is a simulation tool that informs employees in the 2016 University of California Retirement Plan (UCRP) tier how their “Pension Choice” (Defined Benefit) and “Savings Choice” (Defined Contribution) options are structured. It allows them to compare and simulate how various assumptions (e.g., starting age and alternate rates of return) affect projected outcomes in each option. The model is presented in the form of an Excel spreadsheet and posted on the UCFW website. It is accompanied by a written tutorial and two instructional videos.
We encourage you to discuss this informative and helpful tool with new faculty.
Thank you for your continued efforts to support our new faculty.
Chair, Academic Senate – Irvine Division
|Diane K. O’Dowd
Vice Provost for Academic Personnel