[May 15, 2002 ]

In an effort to mitigate this year's decline in state revenues and reduced state funding for 2001-2002 salary increases, The UC Regents approved the Capital Accumulation Provision II (CAP II). CAP II will enhance the University of California Retirement Plan (UCRP) benefits for eligible UCRP members active on April 1, 2002, who received UC covered compensation during the previous 12 months. Active members include those on leave or sabbatical. Inactive and retired members and those receiving UCRP disability income are not eligible for allocations.

A CAP II allocation equals 3 percent of the member's eligible covered compensation earned and paid from April 2001 through March 2002. The allocation will earn interest at the UCRP assumed earnings rate in effect, currently an annual yield of 7.5% percent. During the week of May 27, 2002, eligible UCRP members will be sent CAP II statements and a program booklet Frequently Asked Questions about the Capital Accumulation Provision II (CAP II) [PDF].

In February and August, members will receive updates on their CAP II as well as CAP allocations from 1992, 1993 and/or 1994, if any, through the UC Semi-Annual Account Statements. Members can access their total CAP balance (CAP II and CAP) through the UCbencom website under "Your Benefits Summary" and "UCRS Account Balances" or through bencom.fone (1-800-888-8267) using the "Statement on Demand" feature.

CAP balances are payable when a member elects monthly retirement income or a lump sum cashout, or is approved for UCRP disability income. Members who are not vested in UCRP when leaving UC employment must take a distribution of their total CAP balance.

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