Friday, May 13, 2011

UC's "Perk For Special Talented People" Causing A $1.3+ Billion Problem

"A little-noticed cash benefit for some University of California employees is adding strain to the system’s battered pension plan just as the university prepares for a $500 million reduction in state aid, the deepest cut in 20 years.

At various points since 1992, the university has diverted about $875 million from its regular retirement fund to finance supplemental retirement benefits, in part to make up for salary cuts or meager increases tied to state budgets. But now the university system is carrying a roughly $1.3 billion obligation to more than 100,700 faculty, staff and administrators who were promised generous returns on those initial sums that the university salted away for them."

read the rest of the story here note links on that site to these other recent stories:
*Livermore Retirees Sue University over Health Care Benefits
*Bonus Payments to Retirees Draw Ire in Cash-Strapped City
*UC Pension Cuts Approved

and let us also re-highlight this story from a few days ago:

UC Audit Reveals Decreasing Net Assets from Daily Cal (this is from an internal UC audit-- the state's JLAC audit of UC will not publish its findings until July).

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