FOR IMMEDIATE RELEASE
UC Regents Approve Systemwide Supplemental Funds Program
to Help Boost Modest Employee Salary Increases
Due to the recent economic downturn and resulting decline in state revenues, the University of California received significantly reduced state funding for 2001-2002 salary increases.
The special account, called a Capital Accumulation Provision (CAP), will be available to all eligible UC employees who are members of the University of California Retirement Plan (UCRP). The CAP being proposed will put the equivalent of 3 percent of the employee's salary into a separate retirement account in UCRP where it will earn a specified rate of interest (currently 7.5 percent) until the employee begins to draw on retirement funds.
This is not the first time UC has offered employees a CAP program. In the 1990s, when the state's budget was also under severe pressure, eligible employees received CAPs to offset disappointing salary increases. In the last 10 years, UC has offered five separate CAP programs. Below are several actual employee examples from 1993:
To be eligible to receive the CAP accrual credit, employees must be active UCRP members on April 1, 2002. This would include UCRP members on sabbatical or approved leave of absence. Disabled, retired and inactive members would be excluded.
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