UPTE Pension Training And Rally On The CEO

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UPTE Pension Training And Rally On The CEO

• October 10, 2006

UC Irvine Informational Picket, September, 2006
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Agenda

• The UC Pension Plan
• Reinstating Contributions
• UC Proposals
• UPTE Proposals
• What We Can Do

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Two Kinds of Retirement Plans

• Pension Your monthly payments are defined by a
  formula not by the size of the pension fund
  (Better for you)
• Defined Contribution (DC) Employees pay into a
  fund. Amount in fund when you retire is what you
  get (Worse for you)

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The UC Pension Plan

• Current amount in the fund is 42 BILLION.
• Contributions to the pension fund are paid by UC
  or shared with employees.
• If you leave UC after less than 5 years, all
  pension contributions that were deducted from
  your paychecks must be refunded plus 6 interest.

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UC Pension Plan Formula

• Formula is Based on 3 Factors
• Example
• Retirement Age 58 (2.22 age factor)
• Years of Service 30
• Salary 4,200 / month (50,400 / year)
• 2,708 monthly pension payments

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Pension Contributions History

• 1980s
• UC 4 - 16 of the amount of your paycheck.
• Employee 2 - 3 of your paycheck.

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UC Contributions History

• 1991 Present Pension Fund Exceeds UCs 100
  Level (Fully Funded)
• UC Contribution Holiday 0.
• Employee 2 deducted from paycheck and
  deposited into DC fund.

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UC claims the pension fund will dip below the
100 level in 2009. Is this accurate?
The UC Union Coalition hired actuarial
consultants to examine the fund. They found

1. UC has not justified the need to restart
contributions at this time.2. The UC
information regarding the need for more
contributions has been incomplete.For example,
UC assumes the fund will earn a 7.5 investment
return per year. However, the funds average
return was 15.09 for the three-year period
ending on March 31, 2006. For a 20-year period
from 1985-2005, the fund averaged a 12.31
return.
The report by Venuti Associates is available
at http//www.upte-cwa.org/UCLA/AllMobbedUp/Venu
ti.pdf
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Comparing Other Pension Funds

• UC Pension Current Funding Level 110
• CalPERS Public Agency 87(Largest pension
  fund in U.S. with 180 Billion)
• US Public Pensions, Avg. 85

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UCs Current Wage and Pension Offers For HX
(Hospital) Employees

• 2 cost of living increase in 2007. No wage
  increases beyond 2007.
• Stop employee contributions to the DC fund and
  reinstate 2 employee contributions to pension
  fund (4 for employees making 94K or more).
• Increase employee pension contributions to 3 in
  2008.
• UC recently announced increases in monthly health
  care costs for ALL employees in 2007. Family
  coverage through Healthnet for employees earning
  40-80K will increase 59 per month.

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What We Want

UC will engage in joint bargaining with UPTE (RX
and TX), CUE, and AFSCME to reinstate employee
contributions to the pension fund. HX will
attempt to join in joint bargaining. Our goals
are

• Postpone employee contributions to the pension
  fund for as long as possible.
• Safeguard health benefits for retirees. For
  example, one possibility could be establishing a
  fund to cover these costs.
• Guarantee that UC contributes more to the pension
  fund than employees.
• Maintain unity with other unions on pension
  matters.
• Extend pension bargaining until 2008 when all
  wages and benefits are scheduled to be bargained
  (for RX TX employees).

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HX Quality Wages and Benefits Petition and March
on the CEO
Together HX members have gathered more than
200 signatures on our petition for quality wages
and benefits!
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LETS GO SEE THE CEO!