Home < News
Archive < UCRP Asset
Transfer to LLNS Defined Benefit Plan Completed April 1
[April 1, 2008]
As part of the closeout of the University of California's contract with the Department of Energy to manage Lawrence Livermore National Laboratory (LLNL), the University of California and the Department of Energy /National Nuclear Security Administration (DOE/NNSA) have signed two agreements regarding the transfer of University of California Retirement Plan (UCRP) assets and liabilities associated with certain LLNL active employees’ UCRP service and DOE/NNSA's ongoing funding obligation to UCRP. The UC Board of Regents has authorized the agreements, and the Internal Revenue Service has approved the transaction as consistent with applicable tax law. The asset transfer occurred April 1, 2008.
The transfer agreement establishes the methodology for determining the amount of assets to be transferred to the Lawrence Livermore National Security, LLC (LLNS) defined benefit pension plan to provide funding for the pension liabilities of former University employees who elected to have their basic UCRP benefits transferred to the LLNS defined benefit pension plan. The funds transferred to the Lawrence Livermore National Security, LLC (LLNS) defined benefit pension plan total $1.680 billion. The University retains $3.920 billion in UCRP, which funds 100% of the liabilities for the benefits of the LLNL retired, disabled or vested inactive UCRP members accrued prior to October 1, 2007, including beneficiaries’ benefits (Retained LLNL Segment). The amount retained in UCRP also includes a $140 million Contribution Reserve Amount which provides DOE/NNSA with an initial identified funding source to apply against any future funding obligations to the Retained LLNL Segment. All amounts are valued as of September 30, 2007.
The funding agreement clarifies DOE's ongoing obligation to reimburse UC for contributions made to UCRP to maintain a target funding ratio of 100% in the Retained LLNL Segment. These actions are similar to those taken by the University in its closeout activities associated with Los Alamos National Laboratory and the Department of Energy.
For more information about the UC-DOE agreements, see the Fact
Sheet [PDF], Presentation [PDF] and the Regents
website.