At the next UC Regents meeting, the Office of the President will ask the Regents to endorse new pension contribution rates. According to this proposal, starting in July 2013, current employees will pay 6.5% of their salary into UCRS, and the UC will put in 12%. For people hired on or after July 1 2013, they will pay 7%, while the UC will pay 12%. Of course, these changes will have to be negotiated for represented employees.
One interesting aspect of this is that the university has decided to contribute 12% for the people in both the new and old plan. This means that while people in the new plan will receive a reduced benefit, the university does not have an immediate incentive to fire current workers and replace them with new hires, which often happens when a new pension tier requires a lower employer contribution. However, over time, the people in the new system will cost the university less.
Ultimately, new hires will be paying more and getting less, and this inequality will help to reduce the university’s long-term liability. Moreover, for the next three years, much of the increased contributions from employees may be matched with new salary increases, and so the university will not increase its revenue from these changes. In fact, the move to a 12% employer contribution coupled with a 3% salary increase this year and a possible additional 3% next year will mean that the UC will see its compensation costs increase by 11% in the next two years (the UC currently contributes 5% to the pension plan). The long-term plan is to increase the employer contribution by 1% each year until they reach 16%.
Once the UC starts paying 16% of covered compensation, it will cost the university over $1 billion a year to fund the normal cost of the pension plan. Furthermore, the UC still has to deal with escalating retiree healthcare costs and the fact that the state still does not contribute to the pension plan. I predict that the university will seek savings by continuing to shift more of the cost for healthcare and retiree healthcare to the employees. Without a significant change to recent healthcare legislation, workers inside and outside of the university will continue to see their total compensation decrease.
I saw this post at sunrise this morning and have been licking my chops to respond all day. I am shocked that no one has graffitied this blog with some thoughts, objections, comment or some type of intelligent discourse. Years ago the southern California markets convinced their veteran union staff to vote to sell out the new employees with second tier wages and benefits (at the UC the regents just waived their magic wand). Lifelong personal friends who worked in the industry informed me that though they selfishly thought they were protecting themselves in fact it destroyed the working conditions (seniority is out- cheapest is in). Only later realizing that a successful union is impossible in a multitiered work force ("work union-live better/some more than others" is devisive and not an effective union rally cry). And I have not even gotten started yet on the "merit" (in word only) system that has degraded to a zero or at best cost of living adjustment minus annually increasing pension costs and increased medical/parking costs which result in an ever shrinking paycheck. At this point we need to recognize some UC fuzzy math 3% "merit" increase- 1.5% pension payment increase= 1.5% "merit" increase (less than inflation in most years and pray the increasing med costs didnt get a good portion of the remaining 1.5%). After re 61 (10 year plan with 20% pay increase over the final 4 years- yeah right- why did the regents even pay to print that garbage?) I don't believe anything the regents write or say and only believe UC pay increases have occured once the check clears. Whats that old saying- "Fool me once shame on you, fool me twice shame on me". I hope the regents realize their credibility with regard to pay is shot and that you can't run a university on false hope and promises.
ReplyDeleteI just wanted to comment on your blog and say I really enjoyed reading your blog here. It was very informative and I also digg the way you write! Keep it up and I'll be back soon to find out more mate.
ReplyDeleteAs if this wasn't enough, collectors accord alongside to the cutting bulk of Louis Vuitton handbags and after advertise for gucci replica premiums, like it is with Nike Dunk SB, stamps, baseball cards and coins. However be cautious, 18-carat Louis Vuitton handbags are accessible in finest covering which replica makers acclimate to chanel replica a little admeasurement but they are never fabricated in plastic; watch out, artificial pieces may be absolute affected pieces. Wherever possible, analysis apery handbags with 18-carat Louis Vuitton and amuse yourself that whether they reside up to the brilliant superior the austere replica purses angle for.The replica handbags body of the amount is, getting able to analysis replica handbags for believability takes huge amounts of harder plan from you; sometimes, even the affected masters don't yield affairs with the best of abstracts and accuracy, which accepted humans hardly can tell. The canvas, accessories and assuredly the Louis vuitton replica covering are out of this apple and backpack about the aforementioned attending and feel as aboriginal Louis Vuitton. Replicas are actuality to break and affairs are, your acquirement may be as acceptable as aboriginal Louis Vuitton, if you are in luck.With the banking abatement acute harder and harder aloft us, humans are alpha to feel the pinch.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteManufactured home advances are a type of home advances generally found nowadays. As the name infers, this credit is for manufactured homes that can be moved starting with one place then onto the next. payday loans
ReplyDeleteThis is some amazing stuff shared by you and I believe that https://top-essay-writing.services/essayswriting-org-review/ can find this interesting as well. Share more stuff please. So looking forward to it
ReplyDeleteIn my opinion new pension rates are looking really high. I think that you should also check out the https://masterwriter.org/ site for some tips and hints that you can use in your future projects. I think it could be useful
ReplyDeleteobat gatal
ReplyDeleteobat gatal mampuh
obat gatal manjur
obat gatal resep dokter
obat gatal anjuran dokter
obat gatal rekomendasi
obat gatal dokter