Governor Schwarzenegger announced recently that he will suspend his pension plan reform initiative that would require state employees hired after July 1, 2007 to be offered only defined contribution retirement plans.

The University has been working closely with the governor’s office on this issue these past several months and greatly appreciates his sensitivity to UC’s concerns and needs.

UC officials will continue to work closely with the governor’s office, the Department of Finance, legislators, and representatives from other state agencies to try to develop a solution that balances the state’s financial needs with UC’s need for flexibility in designing compensation and benefits that allow us to recruit and retain the kind of faculty and staff we feel we need in order to preserve the University’s quality and competitiveness.

The governor has indicated that he is willing to put the issue of pension reform before California voters in June 2006 if a solution cannot be reached before then.

We will keep the UC community informed throughout this process as circumstances warrant.