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These soon-to-be pensioners at the University of California have given selflessly to the institution for decades, earning only $400,000 a year or so. As if that pay weren’t insulting enough, the system might not lift the cap on their retirement benefits.

They want UC to calculate retirement benefits as a percentage of their entire salaries, instead of the federally instituted limit of $245,000. The difference would be significant for the more than 200 UC employees who currently earn more than $245,000.

Under UC’s formula, which calculates retirement benefits on only the first $245,000 of pay, an employee earning $400,000 a year who retires after 30 years would get a $183,750 annual pension.

Lift the cap, and the pension rises to $300,000.

Can you imagine retiring on anything under two hundred thousand dollars a year? The mind boggles.

First they came for Todd Henderson; then they came for Victor Dzau; and now damned if they’re not going after the public sector.

Margaret Soltan, December 29, 2010 8:56AM
Posted in: the university

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5 Responses to “SAVE THE U CAL 36!”

  1. cloudminder Says:

    and of course they want to maintain that lovely set up where social security is only taken out on the first $125,000–after the first $125,000 they don’t have social security taken out on the rest of their salaries.

    yet, a lowly clerical making $35,000
    or mid level admins making $70,000 etc.
    those schmucks-who live in the same costly SF Bay Area or LA regions- get to have social sec. taken out on their ENTIRE salary.

    Disposable income is only meant for the rich.

  2. david foster Says:

    Well, what did their *employment agreements* say? If it didn’t include the $245K cap, but did include the pension formula, then obviously it needs to be honored. But if (as sounds more likely) it *did* include the $245K cap, then adjusting this upwards for the soon-to-be-retired would amount to giving away taxpayer money while getting nothing in return.

  3. Trudy Says:

    When I read of/hear of people like poor professor Henderson complain of not having enough, I am reminded of the plight of the retirees who have worked like cogs in the machine all their lives, and cannot afford their full medications or 3 square meals a day. And I am reminded mostly because their sufferings are just SO disimilar! I mean, priorities! Some people cannot buy their meds when they retire, but screw that. There are some, like Henderson, who deserving better, have to suffer the ignominy–the humiliation!–of knowing that there still exists others richer than he. The intense angst the man must be going through beats any actual physical or material deprivations endured by his lesser brethren in this world. My heart breaks.

  4. University Diaries » SAVE THE U CAL 36! (II) Says:

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