Deferred Lifetime Income: Money when you need it most

About one in three 65-year-olds today will live past age 90, and about one in seven will live past age 95.1 UC is introducing Deferred Lifetime Income, a new option designed to turn a portion of your UC 403(b), 457(b) or DC Plan savings into income that lasts your lifetime.

Welcome to the new generation of retirement planning.

Just as your needs change over time, so do the diversified investments in the UC Pathway Funds—transitioning from growth-oriented to conservative investments as they get closer to their target date. 

And now these funds are further evolving. Soon, UC will introduce the latest evolution of the UC Pathway Funds: Deferred Lifetime Income—an optional deferred income annuity that lets you convert a portion of your UC 403(b), 457(b) or DC Plan balance into fixed monthly payments beginning at age 78, when you may need it most.

What is Deferred Lifetime Income?

Deferred Lifetime Income is a type of deferred income annuity, known as a Qualified Longevity Annuity Contract (“QLAC”).2 Buying Deferred Lifetime Income means you are entering into a contract with an insurance company. You can use a portion of your UC 403(b), 457(b) or DC Plan account to purchase it now, and monthly payments will begin at age 78 and continue for the rest of your life.3

You can purchase Deferred Lifetime Income for yourself, or for yourself and a spouse. Plus, you can choose a beneficiary to receive any money you used to purchase Deferred Lifetime Income (the premium) that has not already been paid to you.

Who is eligible to purchase Deferred Lifetime Income?

You will be eligible to purchase Deferred Lifetime Income if you’re a UC employee or retiree between the ages of 62 and 69 and a Social Security or tax ID number and a permanent U.S. mailing address. You'll need to be a primary account holder in the UC Retirement Savings Program with a combined account balance of at least $40,000 across the UC 457(b), 403(b), and DC Plans.4

Where can I learn about Deferred Lifetime Income?

If you are eligible to purchase Deferred Lifetime Income, you will receive more information over the next several months.

To explore retirement income strategies, call a UC-dedicated Retirement Planner at 1-800-558-9182 to talk by phone, or schedule a phone or Zoom one-on-one.