The UC Regents will have a lot to discuss this month with UC President Mark Yudof’s recent recommendation to modify the current pension plan for UC employees. Yudof plans to create a new and less desirable pension plan for workers hired after July 1, 2013 in order to combat the UC’s slashed budget from state funding over the past years. The model would include employees contributing to the pension fund at a rate of 7 percent of their salary and employers at 8.1 percent of their salary. The plan would also include a new tier system between the employees.
There is much debate about whether this plan is the best fit for the UC. Union members have a strong opposition, believing that the new tier system would cause inequality between workers and are concerned that their retirement benefits would be cut. Yet the UC’s staff advisors to the Regents feel that in the long run this model would be the best possible plan in a bleak situation for the University and it’s employees. The Regents will discuss the matter in their November meeting.