State Contribution

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How High Can the Employee Contribution Climb in UCRP? A Message from Dwight Read

Byuclafaculty

How High Can the Employee Contribution Climb in UCRP? Dwight Read, Chair, UCLA Faculty Association Now it is 2% of salary, next year, 3.5%, then 5%. But what will it be in 2017? …24%? In a special meeting scheduled for Dec. 13, the Regents will decide whether to introduce a New Pension Tier at UC for all new hires as of July 1, 2013. At the November Regents’ meetings, President Yudof presented a proposal for the New Tier that set the annual cost of the plan at 15.1% of retirement covered compensation with contribution rates at 8.1% for employers and…

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Guest Op Ed: The UCRP Train Wreck

Byuclafaculty

The UCRP Train Wreck Professor Steven LippmanGeorge W. Robbins Chair in ManagementUCLA Anderson School of Management UCOP intends for the employers’ contribution to UCRP be ratcheted up to 20% by July 1, 2017. The now-planned contribution of 20% from all employers of UC personnel (which includes NIH and other granting agencies as well as the hospitals and medical centers) and 7% from all employees falls short of preventing the current $13 Billion underfunding at UCRP from worsening. At present, employees plus employers pay in 6% of the $8 billion covered compensation (CC) which amounts to $480 million per year. This…

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The Daily Californian: UC Struggles to Fill Multi-Billion Dollar Pension Deficit

Byuclafaculty

I couldn’t find any write-ups on the Post-Employment Benefits Task Force report in the press so far, including in the Daily Bruin. However, UC-Berkeley student paper does have a write-up with the graph above as part of the article. Note that the article correctly identifies the long contribution holiday as the major source of the underfunding problem. For the text, see below: The Daily Californian UC Struggles to Fill Multi-Billion Dollar Pension Deficit By Jordan Bach-Lombardo and Javier Panzar Monday, August 30, 2010 http://www.dailycal.org/article/110146/uc_struggles_to_fill_multi-billion_dollar_pension_ A decision made nearly 20 years ago to stop paying into the University of California’s pension…

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Governor Uses Market Numbers to Set CalPERS Contribution Rate

Byuclafaculty

Extra $$$s for CalPERS from State; zero for UCRP! Governor uses market numbers to set the CalPERS contribution rate! Governor to give CalPERS more funds than it asked for. Dale Kasler, Sacramento Bee, Dec. 06, 2009 With the State facing a $20.7 billion deficit over the next year and a half, Governor Schwarzenegger is willing to raise the State’s annual CalPERS contribution to $4.8 billion in the next fiscal year, even though CalPERS officials only asked for $4.1 billion. Why give more? Because the Governor thinks it is more prudent to pay the CalPERS tab as quickly as possible and…