Regent's Vote to Increase Pension Contributions

In a unanimous vote on Thursday, the UC Regents increased pension contributions for all pension eligible employees to 3.5% in July 2011 and 5% in 2012.   UC employees are currently paying 2% into UCRP.  Union represented staff will negotiate with UC over changes to pension contributions.  UC-AFT member's pension contribution is tied to the senate faculty contribution, so our members will begin paying the new rate as soon as it is implemented for faculty.  Click here to read media coverage of this weeks Regent's meeting.

The increase in contributions is just the first step in UCOP's plan for pension reform.  In December, the Regents are slated to vote on other changes to the structure of the pension plan that would increase the retirement age for pension eligibility from 50 to 55, and offer a new option for a lower contribution and benefit level, among other things.  For more detail on the proposed changes, click here.  All of the proposed changes to the pension plan, with the exception of the contribution rate change for current employees, will only affect people hired after 2013.

UC-AFT has been a leader in the fight against the establishment of a two tier pension plan that will undermine the retirement security of future UC workers.  Our systemwide president, Bob Samuels, has been working very hard to analyze the PEB Task Force proposals and disseminate information about them.  Samuels has focused his message on the senate faculty with the hope of moving the academic senate to take a stronger position against a two tier plan with higher retirement benefits for highly paid executives.  Click here to listen to Samuels testimony at the Regents meeting this week.