UCRS

Academic Senate Rejects New Pension Tier
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Academic Senate Rejects New Pension Tier

Byhigbie

Representatives of UC faculty on all campuses delivered a strongly worded rejection of the proposed 2016 pension tier. Reports from the campuses were extensive and overwhelmingly negative (link to PDF). Berkeley faculty called the proposal “imprudent and potentially fiscally irresponsible.” Davis faculty said, “It is a myth that UCRP is too generous,” and went on to detail a long list of likely negative outcomes from the new tier. Irvine faculty noted “the level of disappointment and depth of passion expressed from all quarters about the negative impact that the imposition of the PEPRA cap has on the future of the…

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Faculty Voice Opposition to Pension Proposal

Byhigbie

On Friday, the UCLA Academic Senate hosted an informational meeting that explained in clear terms that this is a bad, bad plan for faculty. What to do about it was less clear cut. Shane White gave a deeply detailed account of financial aspects of the plan (Slides here: Pension Presentation by Shane White). Among the things we learned: Last year’s budget deal introduced the “PEPRA cap” to UC retirement benefits. This is not a limit on retirement pay-outs, but a cap on the earnings that are used to calculate retirement pay-outs. So any new hire after July 1, 2016 who…

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Pension Changes Proposed: lower benefits, little savings, weaker UCRS

Byhigbie

The University of California will soon have a third pension tier if the Regents approve a plan put forth by the Retirement Options Task Force on Friday. UC President Janet Napolitano charged the Task Force, which included management and Academic Senate representatives, with finding a way to implement her agreement with Gov. Brown to set a cap on pension benefits in exchange for state funds to support the pension system. Over the weekend, as faculty activists read the task force report and a second report produced by Senate leaders (Guide to reviewing the recommendations of the Retirement Options Task Force)…

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If You Don’t Want to Talk to the Piper, Why Not Talk to the Piper’s Paymaster?

Byuclafaculty

As blog readers will know, there is currently a potential ballot initiative on public pensions and other retiree benefits (health care) that as written sweeps in UC.  We won’t rehash why it would be best if UC was excluded – as it ultimately was from the governor’s pension bill.  But let’s just say for purposes of this posting that excluding UC would be a Good Thing. At present, there is no rush needed to get signatures for 2014, or possibly 2016.  And we have suggested in the past that the folks in UCOP might want to talk to San Jose…

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Shying Away from Retiring

Byuclafaculty

Inside Higher Ed today carries an article about surveys of faculty who say they don’t plan to retire at the “normal” age or maybe ever.  The work-til-you-drop response is attributed to such motivations as wanting to be intellectually active but also importantly to concerns about having sufficient funds and health insurance to retire.  When UC was considering changing its retirement plan – it created a two-tier program – it retained the defined benefit approach rather than switch to a defined contribution approach.  Many faculty in the U.S. are under TIAA-CREF or some similar defined contribution program which means that they…

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Promises, Promises on UC Retiree Health

Byuclafaculty

Jim Chalfant pointed me to the item below about retirees at one of the labs (Livermore) suing UC for not providing what they view as promised retiree health care benefits.  They were given a right to sue – which is not the same thing as obtaining a final favorable decision – on appeal.  UC has generally taken the position that while earned pension benefits are a vested right, retiree health care is essentially something nice UC does but doesn’t have to do.    There may be special circumstances in terms of what was said specifically to this group of employees. …

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Reading the Electoral Tea Leaves on Pensions

Byuclafaculty

Two major cities had pension reform propositions on the ballot yesterday and were being watched concerning voter attitudes on the subject.San Jose voters Tuesday handed Mayor Chuck Reed a crucial victory with his nationally watched pension reform measure passing by a decisive margin.  It was a big night for pension reform, with a San Diego measure also winning by a wide margin. City employee unions who argued the measures are illegal were expected to challenge both in court.  But voter approval of San Jose’s Measure B puts Reed and the city in the vanguard of efforts to shrink taxpayer bills…

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Pension Cap at Regents

Byuclafaculty

Those who follow this blog will know that a brouhaha developed when certain highly compensated administrators in the UC system pushed for a lifting of a cap on the level of pay considered for pension calculations under IRS rules. In 1999, the Regents applied for an exemption that would have lifted the cap.  It was approved by IRS in 2007.  But the Regents never implemented the exemption, have indicated they will not do so, and are now threatened with litigation. Apparently as a result, the Regents have a recommendation on their upcoming agenda to rescind their 1999 action.  The item…

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Goodbye Crane – And Thanks for Your Kind Remarks

Byuclafaculty

Pension reform crusader David Crane steps down today as a member of the University of California Board of Regents.  That’s because the state Senate didn’t confirm his appointment to the post within the year prescribed by law. …Crane, a Democrat, was Schwarzenegger’s point man on public pensions. He contended that the state’s three largest funds, including UC’s, were committing “generational theft“ by understating their liabilities and siphoning money from schools and social programs…Full article: http://www.sacbee.com/2011/12/27/4146490/the-buzz-pension-reform-crusader.html

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Optimistic CalSTRS Board Lowers Its Assumed Rate of Return But Not All the Way Down to Our 7.5%

Byuclafaculty

Since CalSTRS’ new assumption is still above ours, we can claim to be more conservative in our pension funding planning. See below: CalSTRS lowers forecast on future investment returns (excerpt) Dec. 3, 2010, Dale Kasler, Sacramento Bee After agonizing for months, CalSTRS made a decision Thursday that seems subtle but has enormous financial implications. The teachers’ pension fund agreed to lower its long-term forecast of future annual investment returns by a quarter of a percentage point… On an 8-3 vote, the board of the California State Teachers’ Retirement System agreed to cut the investment return forecast to 7.75 percent a…