Below is the agenda item regarding the pension. The full item including all features of the deal is at:
J2 LONG RANGE PLANNING
May 21, 2015
Shared commitment to addressing UC’s long-term pension liability. The Governor has agreed, subject to the Legislature’s approval, to provide a total of $436 million in one-time funding over three years, beginning with $96 million in 2015-16, to address a portion of UC’s pension obligations. This funding will be provided from Proposition 2 debt funds, which cannot be used for University operating costs or to pay the current costs of the University’s pension contributions. In return, the University has agreed to bring to the Regents by July 1, 2016 a new pension tier which would provide, at the employee’s election, either a defined benefit plan that caps the amount of salary used to calculate benefits at a level consistent with the State’s 2012 pension reform law (currently $117,020) plus a supplemental defined contribution (DC) plan for certain employees, or an optional fully DC plan. The specific terms of new plans will be developed in consultation with UC faculty and staff. The restructured pension plan, the final form of which will be subject to Regental approval, will not apply to current employees. For represented employees, it will be subject to collective bargaining.