[UCRDBR] Second Choice Window for Active Savings Choice Participants

[Departmental Benefits Representatives]

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January 12, 2022

To:
Department Benefit Representatives
From:
HR Benefits Office on behalf of the UC Office of the President
Re:
Second Choice Window for Active Savings Choice Participants
In March 2016, the UC Regents approved the Retirement Choice Program which provided eligible employees a choice of primary retirement benefits: Pension Choice, under the University of California Retirement Plan (UCRP), or Savings Choice, under the Defined Contribution (DC) Plan. Included in the approved Regents Item was a one-time opportunity for Savings Choice participants to switch to Pension Choice no sooner than 5 years after their initial election, subject to IRS approval.

On January 1, 2021, the Second Choice Window opened for the first group of participants who elected Savings Choice in calendar year 2016. These participants continue to have an open window, and participants will be sent an email communication reminding them of their Second Choice Window.

January 1, 2022, marks the opening of the window for those who elected Savings Choice in 2017. Active Savings Choice participants will be sent a notice via mail with information on their opportunity to switch, including instructions on how to make a Second Choice election.

It is important to note a Savings Choice participant does not need to take any action to stay in Savings Choice; they would only make an election if they want to switch to Pension Choice.

Second Choice Window for Savings Choice Participants

*       Second Choice Window opens January 1 on the fifth calendar year anniversary of the year in which Savings Choice was elected (see chart below).

*       Participants have 5 years and 5 months to make an election to switch to Pension Choice.

*       Elections to switch are effective the following July 1, subject to May 31 payroll deadline.


Savings Choice
Election Date

Second Choice
Window Opens

Second Choice
Window Closes

July 1, 2016 - December 31, 2016

January 1, 2021

May 31, 2026

January 1, 2017 - December 31, 2017

January 1, 2022

May 31, 2027

January 1, 2018 - December 31, 2018

January 1, 2023

May 31, 2028

January 1. 2019 - December 31, 2019

January 1, 2024

May 31, 2029

January 1, 2020 - December 31, 2020

January 1, 2025

May 31, 2030

Eligibility
A participant must be an Active Savings Choice Participant (they may elect while on an unpaid Leave of Absence or paid Leave of Absence), and within their Second Choice Window, to make a Second Choice election.

A switch to Pension Choice will be effective the following plan year (July 1) after making their election, subject to a May 31 payroll processing deadline. For example, if the election is made by May 31, 2022, the change will be effective on July 1, 2022. If the election is made on or after June 1, 2022, the election will be effective July 1, 2023.

Eligibility for the Second Choice Window is subject to collective bargaining.

Benefits Upon a Second Choice Switch to Pension Choice

*       Balances in the Savings Choice participant's DC plan will remain and the participant can continue to direct their investment.

*       Members will begin to contribute to UCRP and earn UCRP service credit on a prospective basis.

*       Savings Choice service credit will be used for vesting in UCRP and retiree health benefits.

*       Savings Choice service will not be used for calculating UCRP benefits or count towards vesting in the Pension Choice DC supplemental account, if applicable.

Second Choice Election Process
To make a Second Choice election, an active Savings Choice participant may complete the election through UCRAYS instructions<https://hr.ucr.edu/sites/g/files/rcwecm656/files/2022-01/second-choiceelections-ucrays-employee-portal.pdf> attached or through submitting a paper UCRS 216 Election to Change Primary Retirement Benefit From Savings Choice to Pension Choice form to the Retirement Administration Service Center. No action is required if the participant wants to stay in Savings Choice.

Participant Notification

*       Initial mail notification to 2017 election cohort was sent to employees during the last week of December 2021 (post marked by December 28, 2021).

*       Reminder email notification will be sent to the 2016 election cohort in the week of January 10-14, 2022.

It is important to note that a member who receives a notice must still be an active Savings Choice participant to make an election. If the participant separates, they are not eligible to make a Second Choice election.

For more information, please refer to the following UC resources:

*       UCnet<https://ucnet.universityofcalifornia.edu/compensation-and-benefits/retirement-benefits/2016-retirement-choice/second-choice-window-for-savings-choice-participants.html>

*       Fidelity Retirement Planners: (800) 558-9182 or http://getguidance.fidelity.com/universityofcalifornia

*       RASC: (800) 888-8267 or Secure Message via UCRAYS (https://retirementatyourservice.ucop.edu)



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