The Regents have to decide soon about the future of the UC retirement system. A bad decision could turn UC INSIDE OUT. A scary prospect for Halloween:
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…
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. 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…
When the stock market fell and rich higher ed institutions such as Harvard looked at the absolute value of their loss, they froze in panic and cut budgets. But yours truly predicted that the day would come when the Harvards and Stanfords of the world would realize that they are still rich with what remains. (Their losses would be proud endowments for many institutions!) That realization is beginning to settle in – as the excerpt below from the Boston Globe indicates. Harvard is making various adaptations to increase its liquidity. It has suspended certain additions to its physical plant. Now…
Professors Jim Chalfant of UC-Davis and Helen Henry of UC-Riverside served on the Post-Employment Benefits (PEB) Task Force and signed the dissenting report. The majority of the PEB endorsed options A and B which are “integrated” with Social Security. The dissenters found A unacceptable and B possibly acceptable if combined with a strategy to make total remuneration (salary + benefits) competitive. Option C was added to the menu by the dissenters. It is a simpler and more generous pension than A or B, but adds to the employee contribution as a result. Dissenters found C to be acceptable, again with…
Governor Schwarzenegger’s weekly radio address of 10/15/10, which is also posted on YouTube, slammed various Republicans by name for voting against the bill in the legislature that was needed to approve the deals he has cut with SEIU and other unions and was part of the budget agreement. (See earlier post.) In the YouTube version, he not only names errant Republicans but puts pictures of them on the screen. Below is the text of the address. A link to the YouTube version is also below. However, note that whatever the Regents come up with in December as the UC version…
Uncomfortable Question: Are we too focused on internal UC politics in evaluating the various pension and retiree health care proposals? Is it a form of UC GroupThink? That issue was raised in a conversation with an administration official. We have tended to worry about what President Yudof thinks, what the Regents think, what various UC officials think, what Academic Senate leaders think, what UC unions think, etc. But in fact we could come up with a plan that somehow balances all these views but fails a public sniff test. Below is a straw in the wind from the San Diego…
Audio is now available of the UCLA Academic Senate forum on Post-Employment Benefits and the various options for the pension system and retiree health care. Cellphone photo from the forum is at the left. The audio (video with a still picture) is divided into seven parts due to time limits of Yahoo-video. Participants were Chancellor Block (welcoming remarks), Senate Chair Ann Karagozian, Chair of the campus Council on Planning and Budget David Lopez, Chair of the campus Committee on Faculty Welfare Shane White, and VC for Finance, Budget, and Capital Programs Steve Olsen. Click on the various parts below. PEB…
For many years, going back to the Manhattan project, UC Regents were in charge of the “nuclear labs.” Various scandals revolving around lab security arose and the management system was eventually shifted to a consortium involving UC and others. At the time, there was concern about the UC pension implications. Lab employees had been part of the basic pension plan. The question was essentially how the assets of the plan (and the liabilities) would be split off to cover them. There was less attention paid to the issue of retiree health care, an unfunded liability for which, unlike the pension,…
