[UCRDBR] 2024 Total Normal Cost Rates for Service Credit Purchases

[Departmental Benefits Representatives]

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November 20, 2023

To:
Department Benefits Representatives (DBRs)
From:
Central HR Benefits Office on behalf of UC Office of the President
Re:

2024 TOTAL NORMAL COST RATES FOR SERVICE CREDIT PURCHASES

DBRs, please share this important information with your department via your internal listserv.



The University of California Retirement Plan (UCRP or Plan) allows Members to purchase Service Credit used in the calculation of retirement benefits for periods of approved leave of absence, temporary layoff, furlough, sabbatical leave, or extended sick leave ("approved leaves").



To purchase Service Credit for periods of approved leaves starting July 1, 1997 and later, Members who are within their three-year window pay the Total Normal Cost with interest for the first two years and pay the Individual Actuarial Cost for any additional years. To purchase Service Credit for periods of approved leaves from November 1, 1990 to June 30, 1997, Members who are within their three-year window pay the Total Normal Cost with interest with no two-year limit. To purchase Service Credit for periods of approved leaves for Members who are outside of their three-year window the cost is based on the Individual Actuarial Cost for all years.



Total Normal Cost amount is determined by applying the Total Normal Cost Rate in effect at the time of the election to purchase the Service Credit to the Covered Compensation during the applicable approved leave period. The total amount charged to the Member is adjusted with interest at the Plan's assumed earnings rate, currently 6.75%, from the date the Member returns to work to the date the purchase is completed.



Establishing UCRP Service Credit Earned as a                    Total Normal Cost Rate for 2024 Elections



Member with Safety Benefits                                                                         29.08%

Member with Tier Two Benefits                                                                      10.56%

1976 Tier Member                                                                                          21.12%

2013 Tier Member                                                                                          18.64%

Modified1 2013 Tier Member                                                                          20.29%

2016 Tier Member                                                                                          17.90%



The Excel-based tool will be updated to reflect the 2024 Total Normal Cost Rates and will be provided at the beginning of January 2024.





1 Non-1976 Tier or 2016 Tier Members represented by bargaining units for CNA (NX), HA, UPTE (HX, RX, TX), and AFSCME (EX, SX, K7).

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