uc retirement

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Don’t Panic

Byuclafaculty

Some readers of yesterday’s New York Times who read the article about municipalities reneging on pensions may panic, particularly those readers close to retirement. There is a temptation to go for the lump-sum cashout in a panic, i.e., get the money while the getting is good. Before you do, however, it is important to note that states such as California and state agencies such as UC, do not have a legal means to declare bankruptcy. There is no legal way out of their pension obligations. Using the lump-sum option will eliminate your access to retiree health care. It is true…

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Another Public Pension Report

Byuclafaculty

The California Foundation for Fiscal Responsibility – the group that is pushing public pension initiatives in California – has released another report. There is little mention of UC although the UC pension appears on one chart as 73% funded. Most of the report is aimed at CalPERS and CalSTRS. As in the past, the new report of this group aims at greater respectability than some of the hit pieces that have been previously issued on pensions. For example, it reports that public workers in California on a total compensation basis (wages + benefits) are – adjusted for occupations – slightly…

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California Public Pensions: Video Program

Byuclafaculty

Yours truly will be traveling Aug. 9-15 so blogging may be limited. However, you may be interested in this program on California public pensions produced by the Maddy Institute at Cal State-Fresno. It includes an interview with the Legislative Analyst’s Office staffer who handles that topic: Part 1: Part 2: Part 3: Part 4: Part 5: The Maddy Institute’s home page is http://www.maddyinstitute.org/index.html

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Confusing Signs on Prospects for a Pension Initiative (& Everything Else)

Byuclafaculty

Earlier posts on this blog have outlined the possibility that some pension initiative could end up on the 2012 ballot that would override the Regents’ December 2010 decision on the UC pension. There are two “legacy” organizations that descend from the Prop 13 property tax initiative of 1978. In a previous post, we noted that one of them – Peoples Advocate – has filed a pension initiative and seems to be fishing for someone or some group to provide financial backing for a signature and election campaign. But now the other group, the Howard Jarvis Taxpayers Association, has said it…

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Pension Initiative Drive Might Become More Difficult

Byuclafaculty

Earlier posts on this blog have pointed out that a pension initiative could appear on the California ballot that would override the changes made by the Regents last December in the UC pension plan. It was noted that initiatives – once qualified – go on the next statewide ballot. For 2012, that might have been February when the state presidential primary was originally scheduled. The mix of voters in a February primary might have tilted toward passage of such an initiative. Now, however, the governor has signed a bill moving the presidential primary back to June when the regular primary…

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Our Primary Concern

Byuclafaculty

The Sacramento Bee today carries a story about the resetting of the date for the California presidential primary. It focuses on the arguments made when – last time there was a presidential election (2008) – California moved its presidential primary from June (when the primary for state offices is held) to February. The idea was to be early in the presidential primary campaign season and thus have more influence on the outcome. You can read all about that idea – and whether it worked in practice – at http://www.sacbee.com/2011/07/29/3802418/california-set-to-move-its-presidential.html Where this matters for UC is in the initiative process. As…

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Possible Pension Fix Coming from On High?

Byuclafaculty

Could this be the ultimate deus ex machina to fix the UC pension’s unfunded liability? Unseen comet’s orbit indicates possible crash David Perlman, San Francisco Chronicle, July 28, 2011 A stream of dusty fragments from a comet born in the outermost reaches of the solar system has hit the Earth on a path that leads astronomers to conclude the comet itself could be “potentially hazardous” if it crashes into the planet. The comet’s location is unknown, making it difficult to say when it will approach Earth, but “the orbits of the dust trail tells us that the comet is on…

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Not Again! Another Pension Initiative Filed

Byuclafaculty

Ted Costa of Peoples Advocate has submitted a ballot initiative on public pensions that explicitly includes UC. Peoples Advocate is the organization originally founded by Paul Gann of the Jarvis-Gann initiative known as Prop 13. You have probably heard of Prop 13. (Joke) The organization by itself does not have funding for signature gathering. But it has a history of getting funding from others. Most notably, it kicked off the recall of Gray Davis. So I would take this initiative seriously. It has things like $100,000 caps on pensions, limits on cost of living adjustments, rules about funding, etc. It…

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CalPERS May Contest San Jose’s Way With Pension

Byuclafaculty

As noted in prior posts, it seems clear that accumulated public pension rights of retirees and current workers cannot be voided or reduced. And it is also clear that new hires can be given lesser benefits than current workers or retirees. In the private sector, benefit formulas of current worker going forward can be made less generous. However, the degree to which that is possible in the public sector has been disputed. CalPERS takes the position that only new hires can have reduced benefits and formulas. But San Jose has a measure on the ballot that would change formulas for…

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Grim Facts Support Defined Benefits

Byuclafaculty

Inside Higher Ed today points to the issue of encouraging retirement of senior faculty and notes a report by the American Council on Education (ACE) about legal issues surrounding age discrimination, etc. Both items discuss the history of federal age discrimination law including the ending of mandatory retirement ages for faculty. Although the ACE report mentions that there are two types of pension plans – defined benefit and defined contribution – it doesn’t emphasize the obvious point. There is no particular retirement incentive under defined contribution plans, which are basically tax-favored savings accounts. You can continue to accumulate contributions to…