Friday, December 10, 2010

Proposed UC Regent Pension Deal is Bad for Workers

" 1) In the last 13 years, the UC Office of the President and the UC Regents have tripled the number of executives at UC. This mushrooming of executives has occurred at the same time that the number of faculty has fallen. Previously there was a one-to-one ratio of faculty to executives; now the ratio is 1 to 3. Executives seem to need a lot of outside consultants. UC Berkeley recently spent $11 million on the Bain&Co. consultants.

2) Highly paid UC executives also receive an extra 5% pension package. Chancellors and the UC president receive extravagant pension packages; e.g, President Yudof will receive $350,000 per year for life after seven years of service. After twenty years of service an employee with an annual salary of $50,000 will get $10,400, if s/he is old enough at the age of retiring.

3) In the early 2000s the UC Regents let go of the treasurer of the UC pension fund, Patricia Small, under whose management the fund had done extremely well. Patricia Small was replaced after criticism had been made illegally in closed (secret) session as ruled by the California Supreme Court in 2003.

4) On two occasions the Regents told UC employees that the fund was so robust that instead of salary increases, the regents would take money from the fund to give employees an extra retirement bonus prorated to their individual incomes. Obviously, this meant more to higher paid faculty than lower paid faculty; and more to executives than to front line workers. It also meant that these workers would forgo annual raises. Faculty and executives continued to receive salary increases. "

read the rest of this important post, here

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