UC President Mark Yudof has released his recommendations for how he wants the University of California to change its employee retirement plan and eliminate a $12.9 billion unfunded liability.
In a letter to employees sent late Tuesday, Yudof laid out proposals to raise the minimum retirement age for future UC employees and reduce retiree health care benefits for existing employees.
The recommendations make UC’s retirement plan a “more conservative pension plan than the State of California offers its employees,” Yudof wrote in his letter to employees.
Under his proposals, employees hired by UC after July 1, 2013 would be eligible for retirement at age 55 (instead of age 50 for current employees) and could receive their maximum pension benefits at age 65 (instead of age 60 for current employees). Current employees would have less of their health care costs during retirement covered by the university, with costs being set by a graduated scale based on years of service and age at retirement. Current employees could remain on the existing retirement health care plan if on July 1, 2013, they have worked for UC for five years and their age and years of service together equal 50 or greater.