UC regents vote to move retirement age to 65

[Newsjock]

Source: San Francisco Chronicle

Over the objections of low-wage workers at the University of California who do physically demanding jobs, the UC regents voted Monday to delay the retirement age by five years for future employees and to immediately begin reducing UC's contribution to retiree health care.

The regents need to close a vast, $21 billion gap in UC's pension and health obligations - a gap that is the same size as the university's entire annual budget, covering everything from classrooms to emergency rooms.

It will still take more than a quarter century for UC to fully fund its retirement obligations, even with higher contributions from UC and employees approved in September.

... "It's not acceptable," said Kathryn Lybarger, a gardener at UC Berkeley for nine years who said several of her colleagues are having shoulder, knee and back surgeries. "I'm in my mid-40s, and I think I can make it to 60. But when you add five years to that, it's not something people like me can do."

Custodian Maricruz Manzanarez, who, like many employees said they worked at UC not for the salary but for the retirement benefits, said, "If you make me retire at 65, God forbid, I'll be dead!"

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/12/13/BANF1GQ0FF.DTL&tsp=1

[Johnny Harpo]

1. With a $21 billion gap in UC's pension and health obligations....

"a gap that is the same size as the university's entire annual budget".

It makes one wonder where all that pension money was invested.

Enron perhaps?...Another 'Oops...so sorry we lost your pension money...we were just trying to make a fast buck"?

[StatGirl]

2. Actually, yes.

Back in 2000 or so, UC fired its in-house treasurer (who managed the pension fund), and gave the pension contract to Wilshire Associates, a crony of then-regent Gerald Parsky. They promptly invested in such stellar companies as Enron and MCI. More details here: http://www.eastbayexpress.com/eastbay/parskys-party/Content?oid=1083283

Of course, it doesn't help that UC decided not to put any money at all into the pension fund for 20 years. On the other hand, they have saved untold billions by allowing staff salaries to erode by 20-25% relative to inflation during that time, so it may even out. :sarcasm:

[boppers]

5. Dear Ghod.

Is it something in the air? Water?

Sometimes California just outright confuses me.

[Demeter]

3. At least they avoided Ponzis like Madoff and Stanford!

[alp227]

4. how about Yudof and his greedy co-trustees take a damn deep pay cut?

Those spoiled brats shoving the burden on the middle class and low-wage workers. Ugh.