One of the latest institutions to join in the tide for pension reform is the University of California system.

In creating a two-tiered system for future employees, the UC System hopes to address some $21 billion in unfunded liabilities. Employee contributions – for all employees – will increase from 4% to 10% by 2012, and other changes, too.

From The Oakland Tribune:

After an outcry against two of the three pension-reform plans presented by a University of California task force, UC President Mark Yudof indicated that he would support the more-favored option in a meeting with regents in November.

UC employee representatives called Yudof’s statement a step in the right direction, but negotiations must still be held to finalize plans with the labor organizations.

The UC system’s unfunded liability in its retirement plan is $12.9 billion. Combined with the retiree health benefits fund, the unfunded liability is about $21 billion, close to UC’s annual budget.

Read the full article here.