By Kat Bocanegra Speed

The University of California Board of Regents approved President Janet Napolitano’s recommended retirement program for new employees Thursday.

Regents Rodney Davis and John Perez and Student Regent Avid Oved voted against the program.

The pension plan gives UC employees two options for retirement benefits. The first option allows employees a pension capped at the California Public Employees’ Pension Reform Act limit of $117,020 a year, plus a supplemental defined contribution plan up to the Internal Revenue Service limit of $265,000.

Faculty will receive a 5 percent contribution on all pay from the UC up to the IRS limit, while staff will receive a 3 percent contribution on pay above the PEPRA cap and up to the IRS limit.

The second option is a stand-alone defined contribution plan that allows both faculty and staff to receive an 8 percent UC contribution on all pay up to the IRS limit of $265,000.

Under the current plan, the UC capped pensionable income at the IRS limit of $265,000.

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[Source]: Daily Bruin