EDB MANUAL

UCLA Payroll Services

A guide for departments to use when adding or changing employee records on the Employee Data Base (EDB).
EDB MANUAL, SECTION E - BENEFITS

E2.0 EDB BENEFITS - RETIREMENT


E2.1 Retirement Information Screen (ERET)

This screen is provided in reference to Sections 2 and 3 on the University-sponsored Retirement Plan and UC Retirement Savings Program - Defined Contribution, 403(b), 457(b) plans.

 PPERET0-E1599                 EDB Entry/Update                07/18/YY 16:04:15
 07/13/YY 23:41:35          Retirement Information             Userid:  ABCDE
 ID: 121212121 Name: EXAMPLE,IMA                Emp Stat:  A     Pri Pay: MO

 Retirement System Code: U     FICA Eligibility Code: E Ret FICA Derive: Y
 Covered Comp Limit Cd : N     DCP Plan Code: S
 DepCare Annual:  5000 Monthly:   416.67 Eff Date: 1231YY Term Date:
 HCRA Annual   :   300 Monthly:          Eff Date: 1231YY Term Date:
 HCRA Decl/YTD:     0.00/  300.00 403b Lmt: 14000    MAC Change: 01/01/YY
                                  457b Lmt: 14000    MAC Change: 01/01/YY
 Voluntary Contribution
 Deduction Num    Description     Amount/Percent  Decl Balance       Eff Date
     228        403B MTA $               2000.00                     0331YY







 Next Func:      ID:           Name:                            SSN:

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 F:  1-Help      2-Jump      3-PrevMenu
 F:                          9-Update                           12-Exit


E2.2 Basic Retirement Plans

The University of California Retirement Plan (UCRP/the Pension Plan) provides retirement income for eligible employees and their beneficiaries. The Plan also provides disability and death benefits, a lump sum cashout, and for certain members the Capital Accumulation Provision (CAP).

UCRP has four classes of membership:

  1. Benefits coordinated with Social Security -- for all employees hired after April 1, 1976 and those who elected Social Security coverage in 1976,
  2. Benefits NOT coordinated with Social Security -- for those who elected in 1976 not to have Social Security coverage and those excluded from Social Security coverage by federal law. NOTE: The election not to coordinate with Social Security in 1976 is a permanent lifetime election, which also applies to employees who originally made this election, leave the University, and are later rehired,
  3. Safety -- for those in Safety classifications (certain police and firefighter positions).  Note: UCLA has employees in this class but UCOP does not, and
  4. Tier Two -- for those who elected Tier Two prior to July 1, 1990. Tier Two was closed to new enrollments on July 1, 1990.
With Social Security Without Social Security Safe Harbor
2% less $19 up to the OASDI maximum* and then 4% less $19 for the remainder of the calendar year.  3% less $19

7.5%**

*OASDI maximum for 2007 is $97,500
**Up to the OASDI maximum then zero deductions for the remainder of the calendar year


E2.3 Retirement System Code

This is a one-character system derived code that identifies the retirement plan (if any) of which the employee is a member. Eligibility for retirement plan membership is based on the type, percentage, and length of appointment.

Retirement
Code
What it Means
U UCRP (University of California Retirement Plan – 1976 Tier) member -- includes members coordinated with Social Security and members who are not coordinated with Social Security)
W UCRP (University of California Retirement Plan – 2013 Tier) member - includes members coordinated with Social Security and members who are not coordinated with Social Security)
N Not eligible for UCRP membership
H Defined Contribution Plan -- Safe Harbor member, Not eligible for UCRP or OASDI membership
B UCRP Tier Two member with no required contributions to DCP (employees whose service credit x age factor > 100%) This category is not applicable to new employees.
P PERS (Public Employees Retirement System) member. Not applicable to new employees.


See Chart 2.A and Chart 2.C for Retirement System codes and eligibility requirements.

E2.4 FICA Eligibility Code

The Federal Insurance Contributory Act (FICA) requires eligible employees to pay Old Age Survivors Disability Insurance (OASDI) and/or Medicare taxes. FICA Eligibility is based on FICA employment tax regulations set by the Social Security Administration.

All employees are eligible for FICA with the exception of the following:

FICA has 2 components: (1) OASDI at a rate of 6.2%, and (2) Medicare at a rate of 1.45%. FICA eligibility may also be impacted by UCRP membership. Under the Safe Harbor Program, an employee who is eligible for FICA and is not a member of UCRP contributes to DCP SAFE HARBOR instead of paying OASDI. An employee in the Safe Harbor Program contributes 7.5% to DCP and pays a Medicare tax of 1.45%.

FICA Code Required to Pay:
E OASDI and Medicare taxes (UCRP member, used with Retirement code 'U')
M Medicare taxes only 
N Not required to pay OASDI or Medicare taxes -- Applies to:
UCRP members who elected not to coordinate with FICA in 1976
Non-resident aliens with F-1 or J-1 visa status
Student employees enrolled at the University at least half time: 6 units or more.


See Chart 2.A and Chart 2.C for FICA System codes and eligibility requirements.

E2.4 (a) University Position NOT Eligible For FICA Taxes

The Social Security Protection Act of 2004, Section 419(c) of Public Law 108-203 requires that employers provide a written notice to any individual being hired on or after January 1, 2005 in a position that is NOT covered by Social Security.

As a result, all new hires in the following categories must complete and sign the 'Statement Concerning Your Employment in a University Position Not Covered by Social Security' UCRS 415 form no later than the beginning of the first day of work:

Note:  An employee must complete the form each time he or she is newly hired or rehired in a new appointment in one of the above categories.

E2.5 Defined Contribution Plan (DCP) Code

This is a one-character code 'Y or N,' that indicates eligibility for Defined Contribution Plan.  This is a derived field and may not be changed manually.

E2.6 Retirement/FICA Derivation Indicator

This is a one-character code that identifies student employees whose retirement system code and FICA eligibility code should not be automatically derived or re-derived.

N - Retirement code and FICA code should NOT be automatically re-derived
Y - Retirement code and FICA code may be automatically re-derived
L - Retirement code and FICA code derivation is based on 1976 lifetime election not to coordinate with FICA
R - Retirement code for rehired retirees who accepted UCRP Waiver. Should be updated by Central Benefits offices only.


E2.7 Retirement and FICA Codes

The Retirement and FICA codes are separate fields, but they are often looked at together because eligibility is generally dependent upon the same appointment criteria (e.g., U/E and H/M).

E2.7(a) Retirement and FICA Codes for Student Employees

Eligibility for retirement and/or FICA membership for student employees is based on the employee’s student status AND course load.  To verify and confirm that the Retirement and FICA codes are being derived appropriately, refer  to Chart 2.A, and Chart 2.C.

The system will automatically re-derive these codes when the following fields are changed:

  • Citizenship Code
  • Visa Type Code
  • UC Student Status Code
  • FICA Eligibility Code
  • Retirement System Code
  • Number of Registered Units
  • Retirement/FICA Derivation Indicator
  • Appointment Begin Date
  • Appointment End Date
  • Title Code
  • Time Appointment
  • Time Reporting Code
  • Addition or deletion of an appointment or a distribution
  • DOS Code
NOTE: DO NOT CHANGE FICA codes of "N" for those employees whose hire dates are prior to 4/1/86 unless there is a break in service. If an employee is rehired who originally opted out of Social Security, the FICA code should be an "M" unless the employee now meets the criteria for "N" coding (is on an F1/J1 visa or is a UC registered student with the required course load).


If you have any questions regarding FICA and/or Retirement codes, call your Central Benefits Office.

E2.8 Covered Compensation Limit (CCL) Code

This is a system-derived code which identifies the limits for UCRP Covered Compensation.   These limits are determined by the IRS and may change annually as of July 1.

CCL Code UCRP Entry Date UCRP Covered Compensation
G Before 7-1-1994 $325,000
N 7-1-1994 or later $220,000


Note: 
Intercampus transfers and certain rehires should be coded 'G' if they have a UCRP entry date prior to 7/1/1994.  Contact the Benefits Counselor for your department before assigning a code 'G.'

E2.9 Rehired Retirees

Retired employees may return to employment at UC with policy restrictions as shown here:

E2.10 UCRP Waiver

All UC rehired-retirees should execute a signed Waiver, whether they accept or decline, when they return back to UC employment after retiring from the University of California Retirement Plan (UCRP). Regardless of the appointment and/or the hours they work, the Member should submit a properly executed Waiver. A new Waiver must also be executed whenever the member changes appointments and at anytime is subsequently rehired into a different position.

Even though many appointments for rehired-retirees are significantly less than 50%, service credit begins to accrue once the member works 1,000 hours in any 12-month period. Rehired-retirees, who return back to work almost immediately after retirement, would normally have accrued at least 1,000 hours of employment prior to retirement, thus would immediately continue to earn service credit in UCRP even though their rehired appointment is less than 50%.

If a Member accepts the Waiver, the appointment will be coded in payroll as such so the employee does not earn UCRP service credit nor contribute to "career" DCP. The Central Benefits Office will process these coding changes once the completed Waiver is received.

If the Member declines the Waiver, the Member should contact UC Retirement Administration immediately in writing so UCRP monthly benefits can be suspended.

What Happens if a UCRP Waiver is Accepted?

What Happens if a UCRP Waiver is Declined?

NOTE: The Waiver is irrevocable until a break in service.

How to obtain a copy of the Waiver
To obtain a blank Waiver contact the appropriate Central Benefits Office.
 

Where to send the completed Waiver
Upon having the employee complete and sign the waiver mail it to the appropriate Central Benefits Office.

E2.11 403(b) Limit

The Maximum Annual Contribution (MAC) is the dollar limit that an employee may contribute to the Tax-Deferred 403(b) Plan per calendar year. The maximum limit is the Tax Reform Act Limit.  This amount will automatically be entered in the EDB. If, for some reason, the system does not automatically input the limit in EDB, contact the appropriate Central Benefits Office.

YEAR UNDER AGE 50 IF AGE 50 OR OVER BY END OF YEAR
2005 $14,000 $18,000
2006 $15,000 $20,000


E2.12 457(b) Limit

The Maximum Annual Contribution (MAC) for 457(b) plan is the dollar limit that an employee may contribute to the Tax-Deferred 457(b) Plan per calendar year. This amount will automatically be entered in the EDB. If, for some reason, the system does not automatically input the limit in EDB, contact the appropriate Central Benefits Office.

YEAR UNDER AGE 50 IF AGE 50 OR OVER BY END OF YEAR
2005 $14,000 $18,000
2006 $15,000 $20,000


E2.13 Beneficiary Information 

Beneficiary Designations for UCRP contributions (if applicable), CAP account (if applicable), University Paid/Supplemental Life Insurance and Accidental Death & Dismemberment Insurance plans should be entered on line at: http://atyourservice.ucop.edu, click on ‘Sign in to My Accounts’, log in to At Your Service Online and then click on ‘My Beneficiaries’. This information can be retrieved and changed by the employee anytime.

Employees, who are unable to use the online service, may use a form UBEN 116 or UBEN 117 if separated or retired. The forms can be downloaded at http://atyourservice.ucop.edu, click on ‘Forms and Publications’ under the Quick Link Menu. 

For the UC Retirement Savings Program balances - Defined Contribution, 403(b) and 457(b) Plans, visit https://netbenefits.fidelity.com to input beneficiary information or call FITSCo at 866-682-7787 to request a beneficiary form.


 

CHART 2.A - RETIREMENT AND FICA CODING GUIDE
Retirement Code FICA Code UC Student Status* Title Percentage & Duration of Appointment and/or
Course Load
U E

 

1-Not registered

All except Visiting or Per Diem titles

50% or more for one year or more OR After 1,000 eligible benefit hours on pay status in a rolling 12-month period and minimum of 17.5 hours of average paid time per week
H** M** 1-Not registered Visiting or Per Diem Any percentage of time and duration
1-Not registered
Less than 50% time OR less than a year
4-Grad Student (UCLA) Post MD or Post DDS Any percentage of time and duration
2-Not registered (UCLA degree candidate)
5-Not registered (degree candidate at another UC campus)

Student has not paid fees
3-Undergrad (UCLA)
6-Undergrad (at another UC campus)

Course load under 6 units
4-Grad Student (UCLA)
7-Graduate (at another UC campus)

Course load under 6 units (under 2 units during Summer Sessions)
N N 2-Not registered (UCLA degree candidate)
5-Not registered (degree candidate at another UC campus)
7
Student has paid fees (Student status 2 when fees are paid – coded as 4/88.8 in the EDB)
3-Undergrad (UCLA)
6-Undergrad (at another UC campus)

Course load is 6 units or more
4-Grad Student (UCLA)
7-Graduate (at another UC campus)

Course load is 6 units or more (2 units or more during Summer Sessions)
* A student employee who is appointed at 100% for at least a year is considered a career employee.  He/she is eligible to participate in the University of California Retirement Plan (UCRP) and is ineligible for the Student FICA exemption.
** NOTE:  A Non-Resident Alien for Tax Purposes who has an F1/J1 visa and a Non-Resident Alien who is living and working outside of the US is coded “N” for Retirement and "N" for FICA. They are ineligible for Safe Harbor and exempt from FICA.
Refer to the Citizenship Codes Chart in Section B2 for information on visa types and citizenship codes.



CHART 2.C - SUMMARY OF RETIREMENT/FICA CODES & MEMBER CONTRIBUTIONS
Retirement/
FICA Codes
Description DCP Contributions/
Retirement
Contributions (a)
OASDI Medicare Safe
Harbor
(DCP-CAS)
U/E Coordinated with Social Security 2% less $19 per month 6.2% 1.45% N/A
U/E Coordinated with Social Security at OASDI maximum(b) 4% less $19 per month -0- 1.45% N/A
U/N Opted out of FICA in 1976 or Non-resident F1/J1 visa holder 3% less $19 per month -0- -0- N/A
U/N Safety member hired prior to 4/86 3% less $19 per month -0- -0- N/A
U/M Rehired after 4/86, opted out of Social Security in 1976 3% less $19 per month -0- 1.45% N/A
U/M Safety member hired after 4/86 3% less $19 per month -0- 1.45% N/A
H/M Hired between 7/91 and 10/19/92, or after 10/19/92 N/A -0- 1.45% 7.5%
H/N Hired prior to 4/86 N/A -0- -0- 7.5%
N/N Non-resident F1/J1 visa holder or UC registered student with required courseload and/or percentage and duration of time. N/A -0- -0- -0-
N/E Hired between 7/1 and 10/19/92 and opted into FICA on UPAY 758 N/A 6.2% 1.45% -0-
(a) UCRP contributions are currently being redirected to the Defined Contribution (DC) Plan.
(b) OASDI and DCP (Safe Harbor) deductions have maximum amounts per calendar year that can be deducted from an employee’s check. UCRP members have an increase in DCP deductions once the OASDI maximum is reached.


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