pension

| | |

Threat Level Reduced on Pensions

Byuclafaculty

The victory of Jerry Brown in the gubernatorial race likely means that the threat of a defined contribution plan as the new lower-tier pension is off the table. Meg Whitman supported defined contribution. Still, as the story below notes, there were a number of pension initiatives at the local level on the ballot and most passed. (San Francisco was an exception.) So the possibility that someone might put a pension proposition on the state ballot remains. Pension reforms sweep, except San Francisco (excerpt) November 4, 2010 by Ed Mendel, calpensions.com Voters approved seven ballot measures Tuesday aimed at curbing or…

| |

CalSTRS May Lower Expected Investment Return to UC Level

Byuclafaculty

The large CalSTRS pension fund has used an expected investment return of 8% per annum. That figure is higher than the 7.5% assumption in the UC pension system. Apparently, CalSTRS may soon go to the UC level. Excerpt from the Sacramento Bee: CalSTRS faces prospect of lowering forecast Nov. 2, 2010, Dale Kasler CalSTRS once again faces the controversial task of cutting its investment return forecast, a move that could put more pressure on the Legislature to increase its annual contribution to the teachers pension fund. At its meeting Friday, the CalSTRS governing board is scheduled to vote on a…

| |

Plan for UC Employer Contribution to Pensions: 2011-2037

Byuclafaculty

Above is a chart, which I am told is not confidential, showing UCOP’s plan for the employer share of the contributions to go into the pension plans (existing plus lower tier) until 2037. The image may not be clear; the lower line is the plan with STIP borrowing which maxes at 18.5%. The higher line is what would happen without STIP borrowing and it maxes at 20%. The note on the bottom of the chart reads: “Assumes new tier with 15.% (sic) total normal cost in place by FYB2013, 8% contribution for employees that stay in the current UCRP plan….

| |

All in the Same Boat on New Pension Plan?

Byuclafaculty

One of the elements of the Academic Senate’s reaction to the two-tier pension proposals has been that faculty and staff should remain in the same plan. (See earlier posts.) President Yudof rejected Options A and B and went along with a version of C. It was unclear (to me) what staff unions were going to say about the proposal. At least on the issue of “all in the same boat,” AFSCME appears to agree with the Senate. From a recent article in the Santa Cruz Sentinal: “The proposal is not good enough,” said Lakesha Harrison, president of AFSCME Local 3299,…

| | |

Academic Council Comments on Lower-Tier Pension Options

Byuclafaculty

The Academic Council released a statement on the pension options. It appears that the process of commenting began well before President Yudof went for a version of Option C for the new lower tier. The Council noted the Yudof announcement (see earlier post for the annoucement) but produced a document that nonetheless referred to all three options: A, B, and C. Its key point is that there should be offsetting increases in cash pay. It also opposes separating faculty and staff into two different plans. The Council letter is at https://docs.google.com/fileview?id=0BzVLYPK7QI_4OWRhYTYwMDUtZjFiYy00MmZhLTgwYTQtZTA3NjRkZjJhNjg4&hl=en&authkey=CNXzgOMD

| | | |

Two Unclear Issues in the Yudof Pension Proposal Clarified

Byuclafaculty

Our previous post reproduced the letter from President Yudof explaining what he will be recommending to the Regents in mid-November regarding changes in the UC retirement system. (The Regents are expected to make their formal decision in December.) In one sense, the letter was no surprise since it recommended a lower-tier pension for new hires of the defined-benefit variety. Essentially, Yudof is opting for a version of what has been previous termed Option C, a defined-benefit plan that is NOT “integrated” with Social Security (as Options A and B were). The letter, however, makes no mention of the proposal that…

| | | |

Letter to UC from President Yudof about proposed changes to UC retirement benefits

Byuclafaculty

October 26, 2010 Dear Colleagues: I am writing to share with you the recommendations I plan to discuss in November with the UC Board of Regents about changes to the University’s post-employment benefits programs. When I established the Post Employment Benefits Task Force, I made clear that the proposed changes needed to satisfy two critical objectives: Help address our financial challenges, and preserve good post employment benefits in support of UC’s commitment to excellence and in recognition of the vital role our faculty and staff play in the quality and delivery of UC’s service to the public. I believe these…

| |

Important message regarding the likely recommendations of President Yudof regarding the UC pension

Byuclafaculty

Important message regarding the likely recommendations of President Yudof regarding the UC pension. Please note the last sentence (in bold) in the email. Date: Mon, 25 Oct 2010 07:17:41 -0700From: Daniel SimmonsSubject: PEB Update Colleagues: There is a light at the end of the PEB tunnel. President Yudof informed me last week that he has reached his decision on the recommendations of the PEB task force recommendations. He will recommend to the Regents that they adopt a modified version of Option C with a consistent 2.5 percent age factor for all employees, an employer contribution of 8.1 percent of covered…

| | | |

What the Latest PPIC Poll Tells Us

Byuclafaculty

The Public Policy Institute of California has released its latest poll data. Jerry Brown seems to be pulling ahead of Meg Whitman. The poll covers the period including the last debate and “whore-gate.” (If you don’t know what that is, it apparently doesn’t matter to voters so forget it.) As far as UC goes, Whitman favors defined contribution pensions for new hires of public employees, but it appears the Regents will select a defined benefit option. Would she insist on DC for UC? As noted in earlier posts, regardless of who wins, there could be a ballot initiative mandating DC….

| | |

The Downhill Slide of Private Pensions: An Issue for UC?

Byuclafaculty

A report based on U.S. Bureau of the Census data notes that the proportion of full-time, full-year employees in the private sector that were participants in some kind of pension plan (defined benefit or defined contribution) has been dropping over the past decade. The participation rate was about 60% in 1999. In 2009, it was about 54%. There is no breakout of California data. The decline suggests why public pensions have become an issue, even apart from concerns about pre-funding. In an earlier post, I noted that much of the focus in the UC discussion of its retirement plan has…