pensions

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NY Times Debate on Aging Professoriate

Byuclafaculty

The New York Times website today features a debate among various academics about the problem (some don’t think it is one) of professors who don’t retire. One participant calls for reinstatement of mandatory retirement. (Mandatory retirement for faculty was ended under federal law in the 1980s.) None of the participants notes that under a defined-benefit (DB) pension, such as we have at UC, there is a strong incentive to retire. Long-service employees under DB pensions lose one year of pension for each year they don’t retire. You can end up working for nothing if you stay. Universities that have defined-contribution…

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What Retirees Are Being Told by UCOP About Possible Changes in Retiree Health Care and Pensions

Byuclafaculty

Judgment Day is Coming from the Post-Employment Benefits Task Force According to the “New Dimensions” Benefits Newsletter for UC Retirees, July 2010, published by UC Human Resources at UCOP. Below is the relevant article: Post-Employment Benefits Task Force to Send Recommendations to President Yudof Predictable but reduced UC contributions for retiree health premiums and changes in eligibility for retiree health benefits for many future UC retirees are among the options the Post Employment Benefits Task Force is considering sending to UC President Mark G. Yudof. After more than a year of study, discussion and wide consultation, the task force is…

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Important: Effect of DC vs. DB Pensions at Universities on Retirement

Byuclafaculty

The article below indicates the problems universities have with defined contribution pension plans (such as TIAA-CREF) which provide no incentives to retire. UC’s defined benefit pension provides a strong incentive to retire for long-service employees.=======================Stanford University confronts the graying of academia By Lisa M. Krieger San Jose Mercury-Newslkrieger@mercurynews.com Posted: 07/10/2010 08:00:00 PM PDTUpdated: 07/10/2010 11:29:02 PM PDThttp://www.contracostatimes.com/news/ci_15480908?source=rss&nclick_check=1 Note: The original article includes a graphic. Click on the url above. Many workers yearn for retirement — the goodbye parties, the golf course, maybe even a gold watch. But Stanford University has the opposite problem: Nobody wants to leave. Hoping to create…

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Governor’s Pension Symposium of July 8

Byuclafaculty

Governor Schwarzenegger ran a public pension symposium on July 8. It was essentially a panel of academics, legislators and former legislators (including former assembly speaker Willie Brown), local officials, past CalPERS members, and academics. You can see a video of the roughly 1-hour symposium by going to the governor’s website: www.gov.ca.gov and clicking on “multimedia.” The symposium concentrated on CalPERS and, to a lesser extent, CalSTRS. UCRS was mentioned in passing at roughly minute 39, but was not explicitly discussed. In particular, the important $2-for-$1 issue that separates UCRS from other public pensions in California was not discussed. (Approximately $2…