Thinking about retiring?
Did you know?UC Retirement Plan pension income isn't subject to Social Security and Medicare taxes. If you are currently paying 6.2% to OASDI (Social Security) and 1.45% to Medicare from each paycheck, know that these deductions will stop when you retire. Some long-term employees who have retired have found that their pension-based take-home pay is actually higher than their take-home pay from paychecks as employees because of this significant difference in taxation.
#1. CAN YOU AFFORD TO RETIRE?
PENSIONS: Some sources of monthly pension income might include:
UC Retirement Plan:
- Automatically generated pension (and lump sum cash out) estimates are available by logging on to At Your Service Online.
- CAP Account (Capital Accumulation Provision): account balance is available by logging on to At Your Service Online.
Social Security: Click here to link to pension calculators at Social Security Online.
RETIREMENT SAVINGS ACCOUNTS:
UC Retirement Savings Program: balances are available for the following accounts by logging on to the Fidelity Retirement Services web site NetBenefits:
- DC Plan (Pretax and After-Tax)
- Tax-deferred 403(b) Plan
- 457(b) Deferred Compensation Plan
#2. WHAT ABOUT HEALTH INSURANCE AFTER YOU RETIRE?
- How much will it cost? Keep in mind that health insurance premiums have been increasing much faster than inflation, and this trend is likely to continue for the foreseeable future. To estimate your retiree medical plan premiums use the UC Medical Plan Chooser
- Note: the percentage of the UC contribution toward retiree medical/dental insurance differs depending upon when employees joined the UC Retirement Plan; click here for more information.
- Will you be moving? Not all health plans are available everywhere. Click here to search for medical plan availability by zip code.
- Presentation: Health Insurance After You Retire
Pension questions? Call RASC.
When you are ready to discuss your retirement preparations, contact the UC Retirement Administration Service Center (RASC) to speak to a specialist: Call 1-800-888-UCOP (8267) or you can access assistance online through a web form at: http://ucnet.universityofcalifornia.edu/contacts/csform.html