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.