Retirement Savings Program
403(b), 457(b), DC Plan
In addition to your primary retirement benefits, you should consider saving additional money to prepare for retirement. The supplemental UC Retirement Savings Program—the 403(b), 457(b), and DC Plans—provide three options to help you build additional retirement savings to augment your primary UC retirement benefits, Social Security, and other non-UC retirement income.
The 403(b) plan features most closely resemble a 401(k) plan. Key differences among the options include when you can access your funds without a penalty and tax treatment of contributions and earnings. You can participate in all of the plans as long as you do not exceed IRS limits. For more details, please see the Complete Guide to Your UC Retirement Benefits booklet or the Summary Plan Descriptions. If you have questions, call Fidelity® Retirement Services at 1-866-6UC-RSVP (1-866-682-7787).
The 403(b) Plan is a retirement plan that lets you add to your retirement account with pretax and Roth contributions.
Your account is portable, so you can normally rollover part or all of your account balance into another employer’s retirement plan or an IRA without penalty whenever you are no longer working at UC.
All UC employees can make supplemental pretax and/or Roth contributions to this plan, with the exception of students working under 20 hours per week. This plan also accepts eligible rollovers from previous employer retirement plans and individual retirement accounts (IRAs).
Your account balance depends on your own contributions, plus investment performance over time. When you retire, you can draw retirement income as needed from your account.
You select investments for your account, choosing from a menu of available investment options. If you don't choose investments, your contributions are automatically invested in a UC Pathway Fund near the year you reach age 65. The UC Pathway Funds are subject to the same kinds of risks you’d face if you chose a diversified portfolio on your own.
All three plans offer the same investment menu. UC provides tools, resources, and one-on-one guidance to help you understand how to plan and invest for retirement.
Loans are available from this plan. If you have an eligible financial hardship while you are working for UC, you may also be able to take a hardship withdrawal. Regular withdrawals or rollovers out of the plan are not allowed while actively employed at UC unless you are age 59.5 or older.
Early withdrawal penalties may apply if you take withdrawals before age 59.5, unless you leave UC during or after the year you reach age 55. Withdrawals are normally subject to taxes and potential early withdrawal penalties as described. Note that, in general, Roth distributions are not subject to federal income tax when withdrawn after the aging requirement has been satisfied and one of the following conditions is met: age 59½; disability; or death.
All distributions are subject to plan rules.
The 457(b) Plan is a retirement plan that lets you add to your retirement account with pretax and Roth contributions.
Your account is portable, so you can normally rollover part or all of your account balance into another employer’s retirement plan or an IRA whenever you are no longer working at UC.
All UC employees can make supplemental pretax and Roth contributions to this plan, with the exception of students working under 20 hours per week. This plan also accepts eligible rollovers from previous employer retirement plans and individual retirement accounts (IRAs).
Please note: Contributions (including new deferrals, changes to deferrals and cancellations) in the UC 457(b) Plan will take effect with the next available paycheck (subject to payroll cut-off dates).
Your account balance depends on your own contributions, plus investment performance over time. When you retire, you can draw retirement income as needed from your account.
You select investments for your account, choosing from a menu of available investment options. If you don't choose investments, your contributions are automatically invested in a UC Pathway Fund near the year you reach age 65. The UC Pathway Funds are subject to the same kinds of risks you’d face if you chose a diversified portfolio on your own.
All three plans offer the same investment menu. UC provides tools, resources, and one-on-one guidance to help you understand how to plan and invest for retirement.
No loans are available from this plan. If you have an eligible financial hardship while you are working for UC, you may be able to take a hardship withdrawal.
Withdrawals and rollovers out of the plan are not allowed while actively employed at UC unless you are age 59.5 or older. Your withdrawals are normally subject to taxes. Early withdrawal penalties normally do not apply to withdrawals of your contributions and earnings from the 457(b) Plan. Note that, in general, Roth distributions are not subject to federal income tax when withdrawn after the aging requirement has been satisfied and one of the following conditions is met: age 59½; disability; or death.
All distributions are subject to plan rules.
The DC Plan offers an After-tax Account that lets you add to your retirement savings with after-tax contributions. Taxes on any investment earnings related to your after-tax contributions are deferred until you withdraw the money.
You can access your contributions at any time without penalty (earnings are subject to taxes and possible early withdrawal penalties if not rolled over). Learn more about the many benefits of the DC Plan After-tax Account, including the option to convert funds to a Roth IRA through a rollover.
Note that part-time, seasonal, temporary employees and non-exempt student employees who are not eligible for primary retirement benefits participate in the DC Plan as Safe Harbor participants, automatically contributing 7.5% of eligible pay on a pretax basis in lieu of paying Social Security. More information on retirement benefits for Safe Harbor participants is available on UCnet.
In addition, if you were a Career employee prior to 2010, you previously made mandatory pretax contributions to the DC Plan.
Almost all UC employees can make supplemental after-tax contributions to this plan. This plan also accepts eligible rollovers from previous employer retirement plans and individual retirement accounts (IRAs).
Your account balance depends on your own contributions, plus investment performance over time. When you retire, you can draw retirement income as needed from your account.
You select investments for your account, choosing from a menu of available investment options. If you don't choose investments, your contributions are automatically invested in a UC Pathway Fund near the year you reach age 65. The UC Pathway Funds are subject to the same kinds of risks you’d face if you chose a diversified portfolio on your own.
All three plans offer the same investment menu. UC provides tools, resources, and one-on-one guidance to help you understand how to plan and invest for retirement.
No loans are available from this plan.
You can withdraw your after-tax contributions without penalty for any reason at any time. Note that because earnings attributable to your after-tax contributions are tax-deferred, they will be subject to taxes and potential early withdrawal penalties when withdrawn (before age 59.5, or after you leave UC employment at age 55 or older).
All distributions are subject to plan rules.
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