pensions

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Testimony in Sacramento Coming Up on UC Pension

Byuclafaculty

Two UC officials will be testifying tomorrow about the UC pension at a legislative hearing on the governor’s public pension proposals. We don’t know what the UC reps will be saying. Hopefully, it will be a polite version of “no thanks; we have our own plan.” If more info becomes available, we will post it. Meanwhile, the hearing agenda can be found below. Pension Agenda(function() { var scribd = document.createElement(“script”); scribd.type = “text/javascript”; scribd.async = true; scribd.src = “http://www.scribd.com/javascripts/embed_code/inject.js”; var s = document.getElementsByTagName(“script”)[0]; s.parentNode.insertBefore(scribd, s); })();

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Regents Expected to Approve Rise in Employee Pension Contributions Today

Byuclafaculty

The Regents at their postponed meeting today (11-28-11) are expected to raise the employee contribution to the pension plan to 6.5% as of 2013-14. See the chart below: The full item is at http://www.universityofcalifornia.edu/regents/regmeet/nov11/f5.pdf This will not be the last increase for either the employee or the employer contribution. No help from the state in sight. Au contraire:

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Another Pepper Apology? Let’s Focus Instead on the UC Budget

Byuclafaculty

The UC-Davis chancellor has now apologized for the pepper spray incident last Friday. Meanwhile, the Washington Post reports that the incident has gone viral with creative images such as the one above on the web. See http://www.washingtonpost.com/blogs/arts-post/post/pepper-spray-cop-works-his-way-through-art-history/2011/11/21/gIQA4XBmhN_blog.html Below is video of the chancellor’s apology. A story about it is at: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/11/22/MNK71M2548.DTL As noted in last night’s blog post, instead of trying to regain “control” via crisis management techniques, it would be nice if the Regents and the powers-that-be at UC focused instead on the ongoing UC budget emergency. Please see last night’s blog posting for a link to the UCLA…

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Tax Leak

Byuclafaculty

Over the weekend, a group going by the name “Think Long” started leaking plans to put something on the ballot in 2012 that would revamp the California tax system and raise more funding. It is funded by billionaires so getting the signatures (typically at a cost of $1-$2 million) won’t be a problem. Even a big campaign for the votes – tens of millions can be involved especially for TV advertising – can be handled. Example of the leak/preview from the LA Times: Joining the battle over California taxes, a group of billionaires and political insiders say they will place…

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Regent Crane Leaves an Unhelpful Message

Byuclafaculty

Departing Regent David Crane, a last-minute appointment to the Board of Regents by Governor Schwarzenegger, would have had his last Regents meeting in November, since he could not get legislative confirmation. But the Regents’ meeting was canceled due to a fear of Occupy-type demonstrations. However, Crane has left behind a missive of sorts – a press release on state budget and pension matters in which he a) endorses the pension proposals by Governor Brown and b) wants to take those proposals further. No reference to the changes already adopted by the Regents for UC is made in the release. No…

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LAOmission

Byuclafaculty

Our previous post deals with the Legislative Analyst’s Office (LAO) report on the state budget. Quote from page 41 of the report: “…because the state is not required under current law to contribute additional funds to UC to address its unfunded pension and retiree health liabilities, the forecast assumes no General Fund resources to assist UC for these purposes.”

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UC Budget Proposal for 2012-13 Readied for Regents

Byuclafaculty

President Yudof’s UC budget proposal for 2012-13, scheduled for discussion at the Regents on Nov. 17, is now posted. The key links are http://www.universityofcalifornia.edu/regents/regmeet/nov11/f12.pdf and http://www.universityofcalifornia.edu/regents/regmeet/nov11/f11attach.pdf The proposal includes a request for increased “core” funding by 8%. Notably included is a contribution to the UC pension – which the state has not been doing since contributions resumed. There appears to be an arbitrary request for one fourth of the employer contribution ($87.6 million). See the last page of the second link. Why just one fourth is requested is not clear. Since this seems to be public pension year, given the…

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LAO Report on UC and Other Public Pensions

Byuclafaculty

The Legislative Analyst has just released a report on the governor’s proposal for public pensions. The report states that the “Governor’s Proposal Is a Bold, Excellent Starting Point” and then goes into a detailed analysis. Most of the report is not about UC, although it does note that changing the UC plan might well involve amending the constitution. But it does have a section on UC reproduced below: What About UC? UCRP Also Has a Major Funding Problem. From 1990 to 2010, UC and its employees enjoyed a remarkable two–decade pension funding holiday due principally to (1) substantial overfunding of…

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DB or Not DB: That is the question

Byuclafaculty

One of the characteristics of a defined benefit (DB) pension such as the current UC plan is that – in contrast to defined contribution (DC) plans – it provides a strong incentive to retire for long-service employees. The two-tier version enacted by the Regents for new hires still preserves the DB format. For faculty renewal, this feature can be important. The governor’s proposal for state and local pensions (including UC) would substitute a “hybrid” plan which is a mix of DB and DC. The more DC there is in a plan, the less you get the incentive to retire. As…

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Ham and Eggs: November 15

Byuclafaculty

The UCLA Faculty Women’s Club will be hosting yours truly on Tuesday, November 15, 1:30 PM, at the Faculty Center to talk about “Ham and Eggs Pensions in California.” Below is the text from the above announcement. FDR wasn’t the only one who wanted to end destitution among the elderly. Even after Social Security became law, about 80 old-age pension proposals competed for support in California alone. The most prominent and sensational became known as“Ham and Eggs.” It promised “$30 every Thursday” for each unemployed Californian aged 50 or older. The idea was that every pensioner deserved a square meal…