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.