The Covered Compensation Limit Code is an IRS established limit for eligible fiscal year earnings upon which retirement benefits and contributions, if any, may be calculated and is entered on the ERET screen.
IRS changed the limit effective July 1, 1994 and allowed retirement plans to grandfather members who entered their plan under the older limit as the new limit is more restrictive. Therefore, this code determines how much of the employee’s eligible earnings will be considered for retirement purposes based on the employee’s original entry date into the University of California Retirement Plan (UCRP).
|G||Grandfathered||The employee initially became a UCRP member prior to July 1, 1994.
Note: If the employee subsequently separated, took a refund of accumulations, and is rehired, the employee remains grandfathered under the older limit.
|N||Non-grandfathered||The employee initially became a UCRP member on or after July 1, 1994.
Note: A newly-hired employee who has never worked for UC previously.
If the employee was previously employed at UC prior to July 1, 1994, and the employee does not remember if she was in the UCRP, you may contact the appropriate Benefits Office.