Archived entries for Post-employment Benefits Task Force

August 24, 2010

Q&A: How will buy-in from the unions work? Do you anticipate it will be difficult?

The University engages with the unions through coalition meetings, and will continue to respond to requests for meetings to discuss these matters. In addition, policy changes are subject to the collective bargaining process for represented employees. Through our Labor Relations office, we will continue to engage the coalition of union leadership in the process.

August 20, 2010

Q&A: Do retirement plan changes have to be bargained with the UC unions?

Yes, we will follow all HEERA requirements and meet our collective bargaining obligations regarding pension and retiree health policies and /or programmatic changes.

August 20, 2010

Q&A: Is prefunding of retiree unfunded health costs necessary?

Very few institutions are prefunding their retiree health costs, and none are prefunding at the level of 100%. What is necessary is that the costs are reported annually in the University’s financial statement. Without some level of prefunding, the liabilities continue to grow unchecked. An implication of significant unfunded liabilities is the impact on the University’s credit rating which affects the cost of borrowing money.

August 20, 2010

Q&A: What organizations are considered UC comparators for post employment benefits?

For the faculty, the historic comparators are four public higher education institutions and four private higher education institutions, the Comp 8. For the senior management group and Deans, 26 academic institutions are the comparators. Other staff positions are compared to large California employers. For positions in the medical centers, 12 national academic medical centers and 10 statewide health systems are the selected comparators. The selection of the appropriate comparator organizations is important in evaluating the University’s total remuneration package. For more information on this topic, as well as the complete list of comparators, go to http://www.universityofcalifornia.edu/news/compensation/comparisons.html.