The condition of the UCRS pension fund is dire. Learn more. Join us in taking action. The full report can be downloaded here.
The university restarted employee and employer contributions to our pension fund (UCRP) on April 15, salve 2010. The suspension of contributions began nearly 20 years in response to the recession of the late 1980s and early 1990s. Though it has saved the state – and the university – many hundreds millions of dollars over the years, it has inevitably led to a gigantic unfunded liability that threatens the long term financial viability of UCRP, putting the ability of current employees (i.e., us!) to collect our pensions when we retire at risk. Over the coming years, the university plans to ramp up both the employee and the employer contribution to begin to fund the growing gap between UCRP’s assets and its liabilities.
As we explain in the report, this plan is fraught with problems. Not only is the state refusing to resume contributing its share of the employer contribution, forcing UC to generate the funds for the restart of the employer contribution through tuition hikes, lay-offs, and other internal revenue sources and savings, but the restart plan is set so low and ramps up so slowly that it will not actually fund the unfunded liability for decades, if ever. The report sets forth BFA’s position on the issues raised by the current crisis and the university’s approach to dealing with it. We also explain what we think the university should do to deal with it.
Please read the report and share it with your colleagues. The issues it raises are extremely important – both for us, as employees of UC and the state of California and for us as citizens of a state facing a huge fiscal crisis of which this is just one of the many, awful symptoms.
Additional documents on the pension crisis from UCOP, etc. can be downloaded here: UCSC Welfare Comm 2009 -Report on UCRS