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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>May 6, 2009<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>TO: Department Benefits Representatives<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>FR: Theron Lyon, Benefits Manager<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>We have decided to cancel the May DBA meeting, however there
are several items of importance that we need to inform you about.
Attachments are also enclosed from the Wellness and Work/Life
programs. Highlighted below are the updates from Benefits.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>COBRA<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Under the new American Recovery and Reinvestment Act that
was passed earlier this year employees who are involuntary terminated or who
receive a layoff are eligible to receive a 65% subsidy for their COBRA
premiums. Attached is a list of the involuntary separation codes and will
continue to be used to determine eligibility. It is important that these
codes are entered in by the department to ensure that eligible employees
receive the COBRA subsidy. <b><span style='font-weight:bold'><o:p></o:p></span></b></span></font></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Also, starting May 1, 2009 Conexis, our third party
administrator, will be sending out the new COBRA notices to employees and
dependents. In the past this process has been administered by Human
Resources. Please be aware that if an employee is cancelling a
dependent’s coverage (e.g., divorce) the dependent is eligible for COBRA
and the dependent should be provided a UBEN 109 to elect COBRA and forwarded to
our office. The link to the form:<o:p></o:p></span></font></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'><a
href="http://atyourservice.ucop.edu/forms_pubs/forms_worksheets/uben109.pdf"
title="http://atyourservice.ucop.edu/forms_pubs/forms_worksheets/uben109.pdf">http://atyourservice.ucop.edu/forms_pubs/forms_worksheets/uben109.pdf</a><o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>Status of UCRP funding<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>The Regents voted last February to start employer and
employee contributions to the retirement plan (UCRP) in April of 2010 based on
the assumption that the Governor’s budget would allocate 22 million
towards the employer contributions. Since then the revised
Governor’s budget has taken out the monies set aside for UC
contributions, however the goal is to start employer and employee contributions
on that date. In the meantime, UC will need to determine the funding
source for the employer contributions.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>Retirement Savings Default Fund<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>At the last DBA meeting it was discussed that the default
fund for the Defined Contribution Plan (DCP) would be changing. If an
employee did not designate a fund, one would be assigned based on the
employee’s age using one of the Pathway funds. Pathway funds target
a retirement year, and the employee’s age would determine which Pathway
fund they would have been placed in if no specific selection was elected.
Due to downturns in the stock market and the volatility these funds have
shown in the last year, this proposal has been eliminated.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>New Buyback Rules<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Effective May 1, 2009 new buyback rules for buying back
service credit for leaves or refund of deposits will be implemented. Here
is a brief summary of the changes:<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><font
size=2 face="Times New Roman"><span style='font-size:10.0pt'><span
style='mso-list:Ignore'>•<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'>
</span></font></span></span></font><![endif]><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Liberalize payment options for all
members<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><font
size=2 face="Times New Roman"><span style='font-size:10.0pt'><span
style='mso-list:Ignore'>•<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'>
</span></font></span></span></font><![endif]><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Eliminate 2-year leave limit<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><font
size=2 face="Times New Roman"><span style='font-size:10.0pt'><span
style='mso-list:Ignore'>•<font size=1 face="Times New Roman"><span
style='font:7.0pt "Times New Roman"'>
</span></font></span></span></font><![endif]><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Allow those that have missed the
3-year window the opportunity to buyback leaves or refund of deposits.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>The buyback brochure will be changed to incorporate the new
changes and employees can access it through the At Your Service website. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>Reminders<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Please encourage new employees or employees who have a
change in appointments and become eligible for benefits to please utilize the
At Your Service website to enroll in benefits. We have recently
experienced an increase in the volume of UPAY 850 forms sent to our office.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Some departments have invited a Fidelity representative to
their staff meetings to review the UC Savings Plans and we have received
positive feedback from departments and their employees who have taken advantage
of these sessions. If you are interested in having a Fidelity retirement
counselor visit your department, please contact Rayna Brower from Fidelity by
e-mailing her at: <a href="mailto:Rayna.Brower@FMR.com"
title="mailto:Rayna.Brower@FMR.com">Rayna.Brower@FMR.com</a><font color=navy><span
style='color:navy'><o:p></o:p></span></font></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>If you have questions, please call the Benefits Office at
X24766.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Theron Lyon</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>UC Riverside</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Benefits Manager</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>(951) 827-1434</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>theron.lyon@ucr.edu</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face=Arial><span style='font-size:12.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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