More Newspaper Editorial Comment on High-Paid UC Execs’ Demand for Lifting Pension Cap: This One Says “Outrageous”

Are they paying attention? UC execs’ threatened lawsuit over pensions misses the point (excerpt)

Jan.3, 2011, Stockton Record

Three dozen of the University of California’s highest-paid executives are threatening to sue unless their pensions are substantially raised. Incredible. Perhaps these men and women, all of whom make more than $245,000 a year, are so busy doing the public’s good works that they missed that:

» The state is facing a $28 billion budget deficit.

» Student tuition at UC increased 32 percent last fall and will jump an additional 8 percent next fall because of sagging state support.

» The UC pension fund already is underfunded by $21.6 billion.

» Bending to this threat would add $5.5 million annually to the pension liability, plus an estimated $51million to make the change retroactive to 2007.

“Employees made career decisions in good faith based on the expectation that the regents’ policy would be implemented,” the executives wrote in a letter to the UC Board of Regents.

The flip side of that, of course, is that the regents made a good faith deal back then, but since then things have changed dramatically. Just ask any family struggling to finance a UC education for their child…

“Outrageous” is the most polite thing that can be said about it.

Full article at http://www.recordnet.com/apps/pbcs.dll/article?AID=/20110103/A_OPINION01/101030303/-1/A_OPINION

UPDATE: The Daily Bruin version of the story is at http://www.dailybruin.com/index.php/article/2010/12/uc_executives_threaten_to_sue_if_university_does_not_increase_retirement_benefits