Supplemental Retirement Benefits

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).

WHAT IT IS

The 403(b) Plan is a retirement plan account that lets you add to your retirement savings with pretax contributions.

Taxes on your contributions and any investment earnings are deferred until you withdraw the money.

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.

ELIGIBILITY & CONTRIBUTIONS

All UC employees can make supplemental pretax 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).

  • If you are under 50, you can contribute up to $19,500 to this plan in 2021.
  • If you are 50 or older, you can contribute up to $26,000 to this plan in 2021. Some employees may be able to make additional catch-up contributions under plan provision.
  • Your total combined annual contributions cannot equal more than 100% of your annual compensation.

BENEFIT

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. 

INVESTMENTS

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 & WITHDRAWALS

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.

All distributions are subject to plan rules.

WHAT IT IS

The 457(b) Plan is a retirement plan account that lets you add to your retirement savings with pretax contributions.

Taxes on your contributions and any investment earnings are deferred until you withdraw the money.

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.

ELIGIBILITY & CONTRIBUTIONS

All UC employees can make supplemental pretax 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).

  • If you are under 50, you can contribute up to $19,500 to this plan in 2021.
  • If you are 50 or older, you can contribute up to $26,000 to this plan in 2021. Some employees may be able to make additional catch-up contributions under plan provision.
  • Your total combined annual contributions cannot equal more than 100% of your annual compensation.

Please note: According to IRS rules, enrollment in the 457(b) Plan cannot go into effect immediately. An initial deferral election, or change in deferral, is deducted from earnings starting the next following month after the election is made, subject to payroll processing deadlines. For example, if the deferral election or change is made in January, the first deduction is taken from February earnings, which is typically March 1 if paid monthly or the second paycheck in February if paid biweekly.

BENEFIT

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. 

INVESTMENTS

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 & WITHDRAWALS

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.

All distributions are subject to plan rules.

WHAT IT IS

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.

ELIGIBILITY & CONTRIBUTIONS

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).

  • You may contribute up to $58,000 to this plan in 2021. This limit applies to all annual additions (pretax and after-tax) to the DC Plan, including UC contributions and mandatory employee contributions.
  • Your total combined annual contributions cannot equal more than 100% of your annual compensation.

BENEFIT

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.

INVESTMENTS

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 & WITHDRAWALS

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.