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DCP are retirement savings and investment plans that supplement the UCRP pension plan. The DC Plan consists of two separate accounts, the Pre-Tax Account and the After-Tax/Rollover Account. State and Federal law requires UC employees, who are currently excluded from membership in the University of California Retirement Plan (UCRP) and Social Security because of their appointment, to participate in the "Safe Harbor" retirement plan. Mandatory DCP Pre-Tax Account | | FULL BENEFITS (CAREER) | MID-LEVEL BENEFITS | | | WITH SOCIAL SECURITY | WITHOUT SOCIAL SECURITY | SAFE HARBOR | | Participation | Mandatory | Mandatory | Mandatory | | Contribution Amount | 2% less $19/month* | 3% less $19/month | 7.5% | | Contribution Limit | Social Security Wage Base ($106,800 for 2009) | None | Social Security Wage Base ($106,800 for 2009) | | Rollovers | Does not accept rollovers | Does not accept rollovers | Does not accept rollovers | | Earnings | Tax-deferred | Tax-deferred | Tax-deferred | | Distribution Options After Separation | Keep in plan with $2,000 minimum balance, rollover taxable monies to IRA or other qualified plan, take monthly distribution or distribution at will. | Keep in plan with $2,000 minimum balance, rollover taxable monies to IRA or other qualified plan, take monthly distribution or distribution at will. | Keep in plan with $2,000 minimum balance, rollover taxable monies to IRA or other qualified plan, take monthly distribution or distribution at will. |
*Once the employee's earnings reach the Social Security Wage Base, the DCP contribution rate changes from 2% less $19/month to 4% less $19/month, and the employee stops contributing 6.2% to Social Security for the remainder of that year. Please note: Employment earnings and Social Security Wage Base earnings may differ. The Social Security Wage Base is affected by pre-tax contributions for medical premium subsidies, Flexible Spending Account contributions and parking deductions.
Voluntary DCP After-Tax Account | | After-Tax/Rollover Account | | Participation | Voluntary | | Contribution Amount | Employee designates | | Contribution Limit | 100% adjusted gross UC salary - up to $49,000 for 2009 | | Rollovers | Accepts qualified rollovers; does not accept IRA rollovers | | Earnings | Tax-deferred | | Distribution | At will | | Distribution Options - At Will | Keep in plan with $2000 minimum balance, rollover taxable monies to IRA or other qualified plan, take monthly distribution or distribution at will. |
For maximum 401(a) contributions to the DCP After-Tax Account, please complete the 2009 IRC 415(c) Limit on Contributions Worksheet.
To Request a Distribution from DCP, please contact Fidelity Retirement Services by visiting its website at www.mysavingsatwork.com or by telephone at (866) 682-7787. Se habla español at (877) 297-3017.
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