Davis Faculty Association

Archive for January, 2016

Act now to prevent further degradation of our retirement system

The University of California is currently considering introducing a new  pension plan for its employees hired after 2016. These proposed changes  will dramatically reduce pension benefits for most new faculty.

The Davis Academic Senate is planning to have two town hall events  to discuss these proposals, one on Monday, January 25, at 10 am, at the  UCD Med Center’s Center for Health and Technology lecture hall 1341. The  other on January 28, at 10 am, in MU II. Please attend to learn more details or  to express your opinion on these issues.

The Davis Academic Senate has also set up a comment form at where you can express your concerns about this plan.

Your opportunity to provide input to the Senate lasts just a couple  weeks. For some purposes, it will be most effective to provide input  this week.

Please read on for additional background and contact information.

This ill-conceived and ill-advised plan, which was negotiated behind  closed doors by President Napolitano and Governor Brown without any  engagement with the Academic Senate, the Regents, the Legislature, or  the larger university community, will do serious damage to the quality  of the University of California.

While the details are highly technical

the implications are not:

1) This is a serious cut in benefits to faculty and many other  professional staff, such as staff scientists and nurses, hired after  July 2016. (See pages 44, 45 and 84 of the task force report.)

2) UC faculty are already much more poorly compensated than faculty at  UC’s peer institutions despite the fact that the cost of living in most  parts of California is very high.

This plan will make it much harder to attract faculty and other  professionals and keep them here.

3) This plan does not do anything to make the existing pension system  healthier and could actually decrease the rate at which the unfunded  liability is retired. (See page 57 of the task force report.)

We agree with the assessment of Academic Senate leaders J. Daniel Hare  and James A. Chalfant’s analysis who concluded:

“If salaries don’t increase to compensate for these reduced benefits,  then UC will have to settle for a lower-quality of faculty who did not  receive better offers elsewhere. Many UC faculty members were hired in  spite of more lucrative salary offers elsewhere, just as many have  either declined outside offers or declined to pursue them. It may have been true at one time that benefits made up for our uncompetitive  salaries. The 2014 Total Remuneration Study showed that no longer to be  the case. While salaries and benefits continue to lag, and we are  contemplating making the lag even greater with the new-tier options, it  is important to note that most of the non-pecuniary attributes of UC  employment also are declining.”

As Academic Senate Chair Dan Hare stated in his remarks to the Regents  in September:

“Any reduction in either salary or benefits surely will have  consequences for the ability of UC to build and retain a future faculty  that is as distinguished as the current faculty. As recommendations are  brought forward in early 2016, I encourage the Regents to carefully  consider not only the budgetary cost of future retirement options, but  also their impact on how faculty members behave in terms of recruitment  and retention. If we are not careful, small budgetary savings will risk  far greater costs to the University, our students, and the citizens of
California.”

We urge you to sign our petition http://www.protectmypension.org/to  express your opposition to proposed changes to the UC Retirement Plan.  We will forward the names of those that sign to local campus faculty  welfare committees so they are aware of local concern about this issue.

UCOP President Janet Napolitano has also invited faculty feedback. Please consider  sending a copy of your comments to us at newtier@cucfa.org.

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