Post-Employment Benefits Forum - Apr 19, 2010
On April 19, 2010, UCOP Executive Director of Talent Management & Staff Development, Randy Scott, and UCOP Director of Pension & Retirement Programs Policy, Gary Schlimgen, returned to UC Davis to discuss the work of the University of California President's Task Force on Post-Employment Benefits and the range of possible recommendations it is considering for the University's pension and retiree health programs.
They were joined by local representatives from the Task Force:
- Charles Hess (moderator) - Professor Emeritus and Chair, Council of UC Emeriti (CUCEA)
- Peter Taylor - Chief Financial Officer, UC Office of the President
- Lin King - R4 Director and Chair, Council of UC Staff Assemblies (CUCSA)
- James Chalfant - member of the UC Academic Senate Planning & Budget committee; Professor of Agriculture and Resource Economics
- Larry Vanderhoef - UC Davis Chancellor Emeritus
Click here for the Powerpoint presentation.
Links to a video recording of the 10am - 12pm presentation on the UC Davis campus:
Windows Media Player: http://webcast.ucdavis.edu/HR/2010/Forum_04-19.asx
Flash Video Player: http://webcast.ucdavis.edu/flashv2/?file=HR/2010/Forum_04-19.flv
This event was a follow-up to forums held at UC Davis on November 9, 2009 to give staff, faculty and retirees the opportunity to ask questions and learn about the immediate and long-term effects of fiscal pressures on the University’s pension and retiree health programs.
Click here for the November 9, 2009 PowerPoint presentation.
At that point, UCOP Executive Director of Talent Management & Staff Development, Randy Scott, and UCOP Director of Pension & Retirement Programs Policy, Gary Schlimgen, were joined at each session by:
- Charles Hess, Professor Emeritus and Chair, Council of UC Emeriti (CUCEA)
- James Chalfant, member of the UC Academic Senate Planning & Budget committee; Professor of Agriculture and Resource Economics
- John Meyer, Vice Chancellor, Administrative & Resource Management (ARM)
- Lin King, R4 Director and Chair, Council of UC Staff Assemblies (CUCSA)
- Karen Hull, Associate Vice Chancellor - Human Resources
Links to view the November 9, 2009 presentation:
Windows Media Player: http://webcast.ucdavis.edu/HR/2009/Forum_Retirement_11-09-09.asx
QuickTime Media Player: http://webcast.ucdavis.edu/HR/2009/Forum_Retirement_11-09-09.qtl
Flash Video Player: http://webcast.ucdavis.edu/flashv2/?file=HR/2009/Forum_Retirement_11-09-09.flv
The Task Force has been charged with developing options for balancing the long-term costs of these benefits with the need to provide competitive total compensation to faculty and staff. The Task Force will study the issues, weigh input from the UC community, and then make recommendations to UC President Mark Yudof on ways to change the funding and policies for post-employment benefits.
UC spends roughly $1.5 billion annually in pension benefits, and the retirement plan accrues an additional $1.3 billion in pension liability each year for its current employees. The funded status of the UC Retirement Plan is expected to decline from 95 percent to 61 percent by 2013, even with the restart of contributions in April, 2010.
In 2010, the University will pay approximately $250 million for retiree health benefits. That expense, which is paid for from operating revenue, is projected to increase by about $37 million per year. By 2013, UC will be spending $373 million annually and by 2018, the figure will have climbed to an estimated $610 million.
The University’s long-term liability for retiree health benefits for current and future retirees is also projected to increase, from $13 billion today to nearly $26 billion by 2018. In other words, the liability is increasing at a rate of more than $1.5 billion per year. Governmental accounting regulations now require UC and other employers to include this liability in their financial statements. Such a significant liability could affect UC's credit rating when borrowing money for campus buildings, hospitals and other projects.
To learn more about the mission and charge of the Task Force, visit the Future of UC Retirement Benefits website.