Clash of the Titans II: Jerry Brown says high-paid execs at UC demanding high pensions are “out of touch”
UC execs’ demand for more benefits angers many (excerpts)
Nanette Asimov, San Francisco Chronicle, Dec. 30, 2010
Gov.-elect Jerry Brown, state lawmakers and others minced few words Wednesday in condemning high-paid executives at the University of California who are threatening to sue UC unless it spends millions of dollars to increase their pensions. “These executives seem very out of touch at a time when the state is contemplating billions of dollars in reductions that will affect people who are far less advantaged,” Brown said. Their demand comes as UC faces $21.6 billion in unfunded pension obligations and is reducing benefits for its workers.
…The executives declined to comment for a Chronicle story revealing their threat and continued their silence Wednesday. But politicians and UC alumni did not hold back. “These individuals have a limited view of what the UC system should be,” said Assembly Speaker John Pérez, D-Los Angeles, also a regent. “When we see fee increase after fee increase at UC, the last thing we should be doing is increasing benefits for the most highly compensated people.” Assemblyman Jerry Hill, D-San Mateo, said he will introduce legislation next week to try to prevent the regents from increasing retirement benefits to the more than 200 employees earning more than $245,000.
…Attorney Geoff Van Loucks of Carmel said he was about to donate money to the Berkeley Law School but stopped when he read that Edley was among those demanding a higher pension. “This is the kind of stuff that gives the university a bad name,” he said. “I am just outraged.”
…Regent Dick Blum, who serves on the board’s finance committee, said he understood both sides. He said the regents need to study what legal obligations they may have to the executives, and take into consideration the fact that without higher pensions, UC could lose good people. “You can’t do better than the team we’ve got working there now,” he said. “I would hope that saner heads would prevail, and we can find a compromise rather than wind up with a lawsuit with some of the university’s most valuable employees.” Whatever happens, Blum said, “This situation doesn’t make anyone look good.”
Full article at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/12/29/BAH51H1GA1.DTL
UPDATE: A blog at the San Francisco Chronicle by Debra Saunders – who identifies herself as the token conservative at the newspaper – has fun with this matter:
http://www.sfgate.com/cgi-bin/blogs/djsaunders/detail?entry_id=79992
