Contents
Faculty Forum, Nov. 8, at UCSB
Message from the Chair of UC Senate on President Yudof's PEB recommendation to the Regents
Video by Suresh Lodha on PEB. (see link for slides) and the analysis by Henning Bohn.
CUCFA & BFA documents sent to President Yudof (Oct. 14, 2010)
Endorsement of 10 principles (Unions and CUCFA).
Useful links on PEB Issues.
UCSC Welfare committee's analysis of PEB.
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Post Empolyment Benefits, October 2010 |
- At UCSB, LET'S AS MANY OF US AS POSSIBLE ATTEND the Faculty Forum with the systemwide Senate leadership on Monday, Nov. 8 from 2:00 to 4:00 in the Flying A room (UCEN). Daniel Simmons, Chair of the Academic Senate and Robert Anderson, Vice-Chair of the Academic Senate will be at UCSB to hear from faculty about issues and concerns, and to discuss systemwide Senate issues in which the Senate is involved, such as changes in post-employment benefits and the Commission on the Future. Simmons and Anderson are visiting each of the campuses to listen and talk to faculty about local concerns.
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- Colleagues:
There is a light at the end of the PEB tunnel. President Yudof informed me last week that he has reached his decision on the recommendations of the PEB task force recommendations. He will recommend to the Regents that they adopt a modified version of Option C with a consistent 2.5 percent age factor for all employees, an employer contribution of 8.1 percent of covered compensation, and an employee contribution of 7.0 percent. The total normal cost of the new-tier plan is 15.1 %, which is slightly below the total normal cost of revisions to the CALPERS benefits included in the recent State budget. The new-tier benefits will apply to employees hired
after July 1, 2013.
- President Yudof will carry his recommendation to the Regents at the November meeting. The Regents will be expected to act on the recommendations at a special meeting on December 13. Bob and I have discussed this option with a couple of key Regents, and I anticipate that the President's recommendation will be supported, but of course there is no certainty.
- The Regents will not be asked to act on employee contribution levels for current employees under continuation of the existing benefits of the current plan. As you know, employee contributions will ramp up to 3.5 percent on July 1, 2011, then 5.0 percent on July 1, 2012. The finance plan in the PEB task force report contemplates an increase to 7.0 percent, then perhaps higher over time perhaps increasing to 8.0 %.
- The recommendation will maintain the existing COLA provisions, unchanged for the new-tier.
- President Yudof will also recommend that Appendix E not be implemented, rejecting the recommendation in the task force report.
- At Wednesday's Council meeting we will need to consider the tabled UCFW resolution regarding the task force options and a position on President Yudof's recommendations. While the President's decision is taken in
advance of a formal expression of opinion on the specifics of the proposal, I hope you all will appreciate the fact that the President has been fully aware of the Senate's views on the various options and that his
recommendation is consistent with the positions expressed by almost all Senate agencies in their review of the task force recommendations. Bob and I, working with Joel Dimsdale, chair of UCFW, will attempt to craft a
resolution for your consideration that reflects the UCFW positions, which have been endorsed in one form or another by almost all of the divisions and committees. I think it is important to memorialize the Senate's
recommendations on the various options presented as a reflection of all of the hard work that has gone into examining those positions. I also hope that we will be able to agree on a statement in support of President
Yudof's recommendations, along with a recognition that the University needs to focus on competitive remuneration for both faculty and staff.
- I look forward to a lively an interesting discussion at Council. You may, if you wish, circulate this message to the members of your committees and to colleagues on the campuses.
Dan
Daniel L. Simmons, Professor of Law, UC Davis
Chair, Academic Senate, University of California
1111 Franklin Street, 12th Floor // Oakland, CA 94607-5200
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- Check the presentation by Sureh Lodha about the various options discussed by the PEB taskforce. It has been posted as a video on the UC Santa Cruz FA website.
And the analysis by UCSB Professor of Economics Henning Bohn on the various options. (Dated October 11).
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- On October 14, 2010, CUCFA delivered the following documents to the Office of President Yudof:
1) The Berkeley Faculty Association [BFA] report addressed to President Yudof.
2) A longer version of the BFA report going to BFA members and faculty.
2) The letter from Bob Meister, representing CUCFA, supporting the ten principles and the BFA report.
- The Board of UCSB FA has endorsed the following proposals circulated by BOB Samuels, in consultation with CUCFA. For comments see Chris Newfield's blog " Pensions Decision may be at hand", October 11, 2010. Writes Newfield: "According to a report cited below, President Yudof now plans to end the comment period on October 14th, and that the Regents will vote on permanent changes to UCRP in a special meeting in December. I hope this is wrong: detailed analyses are just starting to come in (see below), the Academic Senate has not yet taken any position, and a rush to dilute one of the central propellants of the University of California's rise over the past forty years makes no institutional sense."
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Dear Senate Faculty member,
Several unions (AFT, AFSCME, UPTE, CNA) in consultation with CUCFA and members of the senate faculty welfare committees have put together a joint set of principles regarding possible pension changes, and we would like to
have your name on the letter that has to go to UCOP by OCT 12th. While it would be best to have full senate committees sign on to the letter, we simply do not have the time to go through the normal voting process. At a meeting with UCOP on Oct. 7th, we were informed that President Yudof wants to receive all input by Oct. 14th so he can make a recommendation to the Regents at the November 17-18th meeting. We also expect that a final decision will be made at a special regents meeting in December. This is
all moving very fast, and while the dissenting Post Employment Task Force Report does call into question the consideration of a new pension tier, we feel that President Yudof may move ahead and support one of the task force's options, which do not make UCRP more healthy and offer reduced benefits for new hires and possibly current employees. Please let me know if I can sign your name to this letter as a concerned faculty member.
Bob Samuels, President, UC-AFT
Shared principles:
1. We need to move to a full funding of the normal cost of UCRP. The suggested new tiers do not address this issue.
2. There has to be a credible plan for total remuneration approved by the Regents.
3. We must begin paying down the UCRP liability now. This can be done in part from borrowing from STIP or Pension Obligation Bonds.
4.We need more people paying more into UCRP and not fewer people paying less.
5. There should be a full discussion of alternative plans with the inclusion of faculty, unions, and staff at all levels of the process.
6. We need a plan to pre-fund retiree healthcare.
7. We will work together to get the state to pay its share of the employee contributions.
8. The university should end supplemental retirement packages for Senior Managers.
9. Any changes to the pension plan and retiree health should not discriminate against low- and medium-wage employees.
10. We oppose raising the employee contributions to a high level in order to induce current employees to opt into a new system.
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