August 19, 2010
Funding sources for retiree health care and the pension are different. For pension, benefits are paid out of the University of California Retirement Plan (UCRP) Trust. For retiree health, benefits are paid from an annual assessment on employee salaries.
August 19, 2010
Yes, the University is aware that retirees pay health premiums on an after-tax basis and that many retirees may not be able to deduct healthcare premiums for tax purposes (dependent on their other healthcare expenses and individual tax situation). The task force discussed this topic when considering the future UC contribution policy.
August 19, 2010
No, it is not necessary. The first priority is to address the unfunded liability for pension benefits. Today no public employer is attempting to fund the accrued liability cost of retiree health benefits at the 100 percent level. The best funding level is between 20 and 30 percent. There are a number of issues to be considered: does the University pre-fund, at what level, and for the total liability, the normal cost, or the required contribution?
August 19, 2010
There have been no discussions about eliminating coverage for eligible adults such as spouses, domestic partners and dependents
August 19, 2010
Blended premiums combine the cost of faculty/staff and non-Medicare retirees in establishing non-Medicare retiree premiums, whereas unblended premiums separate the cost of active employees (faculty/staff) from non-Medicare retirees.
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