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Correction for Missed Voluntary Savings Plans Deduction Error

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UCPath discovered an issue last year in which voluntary retirement savings plans deductions were missed on employees’ final paychecks issued from February 1st, 2025, to July 2nd, 2025. UCPath has since notified affected employees and corrected the system issue to prevent further errors. 

The University of California (UC) made a Qualified Nonelective Contribution (QNEC) to the plan on behalf of affected employees. Internal Revenue Service (IRS) regulations require the UC to fund 50% of the missed deferral amount. 

UCLA will use central funding to supply the required 50% UC contribution for the University’s affected employees. This process will be completed centrally; no department action is required at this time.

Which deductions were affected? 

Deductions were missed on employees’ final paychecks issued from February 1st, 2025, to July 2nd, 2025, for the following voluntary retirement savings plans:

  • 403(b) Plan – Pretax and/or Roth contributions
  • 457(b) Plan – Pretax and/or Roth contributions
  • Defined Contribution Plan – After-Tax voluntary contributions