UC officials want the state to make pension contributions, as it does for the California State University and California Community Colleges systems. But the state, facing its own financial problems, hasn’t provided money for UC pensions for more than 20 years… The roots of UC’s pension problems began more than two decades ago when administrators decided to suspend contributions. The pension fund appeared to be overfunded, and the cash-strapped state was cutting UC funding. University administrators finally took action to address its ballooning retirement obligations in 2010 after stock market losses in 2008-09 left the UC retirement fund dangerously underfunded. UC and its employees resumed making payments to the UC Retirement Plan in 2010, with contribution amounts steadily increasing each year. The university system is increasing the retirement age for future employees by five years, which will reduce the amount UC subsidiaries will need to contribute for pensions. UC is also aiming to rein in costs for its retiree health program by raising the eligibility age and reducing the percentage of the insurance premiums it covers.

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by Terence Chea, The Sacramento Bee.

Posted: June 19th, 2012, by: admin. Categories: . Awaiting Comments.