UC's pension system (and its funding problem) is often lost in articles about public pensions in California. Usually the focus at the state level is on the big CalPERS and CalSTRS funds. Or it is on particular municipal pensions such as the pension of the bankrupt city Vallejo. The calpensions.com website, in an article today, did mention UC as part of a general discussion.
The full article is at:
http://calpensions.com/2010/07/22/pensions-the-good-the-bad-and-california/
The UC excerpt:
"The UC Retirement System ended a two-decade contribution “holiday” this year. Neither employer nor employee paid into the system, while costs were covered by investment earnings.
A required employee contribution to a 401(k)-style individual investment plan, 2 percent of pay, was switched to the retirement system in April. UC says the state should be contributing $320 million a year to cover normal costs, but it’s getting nothing so far.
The remarkable contribution holiday enjoyed by the UC system shows how public pensions depend on investment earnings."
On net, it is better for UC to be mentioned in public discussions of the state's pension problems. There is at least recognition that we are not part of CalPERS and have special issues. The danger facing UC, as noted in prior posts, is that come January - with a new governor in place - we will be swept up in "reforms" really aimed at CalPERS and CalSTRS.
1 comment:
Incredible story there. What occurred after? Good luck!
My web blog: 1384
Post a Comment