[October 3, 2008]

Many employees and retirees are wondering about the effects of the recent volatility in the financial markets on their UC Retirement Plan (UCRP) benefits and the UC Retirement Savings Program. The following information responds to these questions:

UCRP Benefits
Benefits provided to you by UCRP are not affected by gains or losses in plan investments. UCRP is required to pay out vested benefits according to the established formulas (generally based on your age, service credit and salary) regardless of investment returns. UCRP assets are invested with a long-term outlook. The investment pool earns more in some periods and less in others, and that is to be expected due to fluctuating markets.

UCRP and UC Funds Remain Sound, Strong
The Office of the Treasurer of The Regents manages the University of California’s retirement, endowment and cash assets under the policies, guidelines, and performance benchmarks established by The Regents. The Office’s mission is to implement those policies and guidelines by selecting, executing, and monitoring investment strategies designed to add value over the benchmarks within a risk controlled framework. The University’s investment portfolios are well-diversified and recent stock market volatility is mitigated by investment in other asset classes. The University continues to focus on investing for the long term while finding opportunity within this changing market environment. More information is available on the Treasurer’s website.

Future Contributions to UCRP
The University has been engaged in a multi-year process to keep UCRP fully funded so that the plan will be able to pay retirement benefits to employees in the future and UC’s benefits remain competitive in the marketplace.  At their September meeting, The Regents approved a proposed funding policy for the UCRP that is designed to accomplish these objectives. The proposal establishes July 1, 2009 as the date for resuming employer and employee contributions to the UCRP, subject to collective bargaining where applicable. More information about the proposal is available here.

Retirement Savings Program Accounts
For those concerned about their investments in the DC Plan, 403(b) Plan and 457(b) Plan, see the Fidelity Retirement Services website for information about the UC Core Funds and about investments in a volatile market.

Fidelity adviser answers questions about UC employee investments.

• The information presented in these news archive articles may no longer be current. Please note the date when the article was first published.