Pension Choice

  • Pension plan. Pays you a predictable monthly benefit after you retire. Depending on your salary and/or job type, this option may also include a supplemental defined contribution account.
  • Based on a formula. The pension benefit is based on a formula that includes eligible annual pay, service with UC and age at retirement.
  • Five-year vesting. Your future pension benefit and UC's contributions to the supplemental savings account, if any, vest after five years of UCRP service credit. If you leave UC employment prior to vesting, you are eligible to leave your pension contributions in the UC Retirement Plan (UCRP) where they accrue interest, or take a refund of your contributions.
  • Not fully portable. You cannot roll over your pension benefit to another employer’s retirement plan or IRA if you leave UC. If you are vested when you leave UC, your pension benefit is normally paid out as a lifetime monthly benefit when you retire. You generally can roll over your vested supplemental savings account balance, if any, if you leave UC.

Savings Choice

  • Retirement savings plan. A tax-deferred retirement savings plan account, similar to a 401(k). You invest the money in your account and draw income from your account balance when you retire.
  • Based on contributions and investment performance. Your account's value depends on contributions plus investment performance.
  • One-year vesting. UC’s contributions to your account vest after one year.
  • Portable. You generally can roll over your vested account balance, if any, to another employer’s retirement plan or IRA if you leave UC.

Note: Savings Choice participants have a window of opportunity to switch prospectively from Savings Choice to Pension Choice, and become members of the UC Retirement Plan (UCRP). The second choice window for Savings Choice participants opens on the fifth anniversary of the calendar year in which they made their initial election.