Friday, July 10, 2015

Budget deal brings major changes to University of California pension system - ALEXEI KOSEFF, Sacramento Bee

The highly public funding battle between the University of California and Gov. Jerry Brown that began last fall centered primarily on tuition levels and enrollment slots for students. But a budget deal reached this spring holds the biggest changes for future university employees. As part of an arrangement that includes four years of funding increases, a two-year tuition freeze and additional money for UC’s sizable pension debt, the university is undertaking a significant overhaul of its retirement system. Though details remain to be worked out, it will introduce a pension tier with a dramatically lower compensation cap, and could shift new hires from a guaranteed benefit to a 401(k)-style defined contribution plan.

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