Compensation that many academic appointees receive for summer session teaching, research, or administrative service (“Summer Salary”) is not considered covered compensation for determining UC primary retirement benefits. Therefore, the Summary Salary Benefit is designed to provide a retirement benefit in the form of mandatory pre-tax contributions made by UC and eligible academic appointees.
Summer Salary Benefit contributions are now being made to the UC 403(b) Plan instead of to the DC Plan. This change applies to all faculty who are, or may become, eligible for the Summer Salary Benefit.
The redirection of mandatory Summer Salary Benefit contributions to the UC 403(b) Plan became effective November 1, 2016. Summer Salary Benefit contributions (and related investment earnings) made before November 1, 2016, remain in the DC Plan.
If you earn Summer Salary for the first time on or after November 1, 2016, you will need to designate a fund for your Summer Salary Benefit contributions under the UC 403(b) Plan, or the contributions will default to an age-based UC Pathway Fund. Information regarding the UC Pathway Funds and other investment fund options can be found on the Get UCRSP Fund Menu Details page.
Because the Summer Salary Benefit contributions are mandatory, they will not reduce the contribution limit on an academic appointee’s voluntary contributions to the UC 403(b) and/or 457(b) Plans.
Questions about eligibility provisions or the amount of contributions should be directed to the UC Retirement Administration Service Center at 1-800-888-8267.
Inquiries regarding investment fund options or how to designate a fund for Summer Salary Benefit contributions to the UC 403(b) Plan should be directed to Fidelity at 1-866-682-7787.
The investment risks of each target date Pathway Fund, with the exception of the UC Pathway Income Fund, becomes more conservative over time as the Fund approaches its target date. Ultimately, each UC Pathway Fund is expected to merge with the UC Pathway Income Fund once it reaches its target date. However, like all investments, the UC Pathway Funds involve risk. Assets held in the Pathway Funds are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Principal invested is not guaranteed at any time, including at the or after their target dates.
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