ucrp

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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…

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Byuclafaculty

The Troubles at UCRP 1. Under normal circumstances, 17.02% of covered compensation (your base salary) is the annual contribution required to maintain a healthy pension fund. For all of UC, this amounts to $1.3395 billion. The Regents’ 2010-2011 proposed budget funds UCRP at just over one third this amount. Thus, the Regents’ plan will underfund UCRP by $867 million in the academic year 2010-2011. 2. Circumstances are not normal: UCRP is no longer a fully funded pension plan. Part of this problem arose because of poor market returns, but most of the shortfall can be attributed to the 20 year…