UC President Mark Yudof says the system faces a 21 billion dollar shortfall in its retiree pension and health care programs…along with uncertainties due to the state's budget problems:
"My first obligation is to be a realist. The budget must be balanced. The payroll must be met. The faculty needs to be hired, the students enrolled and services provided to them, pensions made secure and the bills paid."
The Board voted to increase the minimum retirement age from 50
to 55 for most workers hired after July of 2013. The age for
maximum pension benefits would be 65. Retirees would also pay
a greater share of health care premiums. UC must negotiate
the changes with its labor unions. Some unions argue the
later retirement age is unfair to workers with physically demanding
jobs.
