[May 1st, 2006]

The following is from a letter, sent to the UC community, April 26, by Randy Scott, Executive Director, HR/Benefits Policy and Program Design, UC Office of the President.

Dear Colleagues,
Following the Regents approval in March of an updated funding policy for the UC Retirement Plan (UCRP), there has been widespread misinterpretation of the Regents action on the part of designated representatives of certain employee groups. In some cases, statements have been circulated that are not true. I'd like to take this opportunity to clearly state what the Regents action means to employees. 

Active employees will not be asked to make 16 percent contributions to UCRP, nor is there any action under consideration to reduce employee pay by 8 percent in July 2007. The Regents adopted the concept of a multi-year contribution strategy under which contributions from employees and the University will be shared and will increase gradually over time. The intent of the Regents action is to begin contributions at a low level to minimize the impact on employee take-home pay and on the University's operating budgets.

The specific levels of employee and University contributions have not yet been decided by the Regents. The reinstatement of contributions to the UCRP is subject to the budget process and the collective bargaining process for represented employees.

To keep informed, visit UC's special website, "The Future of the UC Retirement Plan," which is updated with the latest information.

Sincerely,

Randy Scott,
Executive Director
HR/Benefits Policy and Program Design

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