While current employees and retirees are guaranteed the UC Retirement Plan benefits they have earned, the University must concern itself with the sustainability of the plan and the market competitiveness of the benefit. Recent actions by the Regents to address these issues are the decision to restart employer and employee contributions to UCRP beginning April, 2010, and the establishment of a Task Force on Retirement benefits to develop a comprehensive, long-term approach to UC obligations for post-retirement benefits.
The effect of the State of California legislature's decision to eliminate funding for the restart of contributions from the 2009-10 state budget is not yet clear. President Mark Yudof said the university is gravely concerned. "The state has a responsibility to support employer contributions to UC's Retirement Plan, as it does for other defined benefit plans on behalf of California State University and community college employees," Yudof said.
The Task Force on Retirement Benefits will make recommendations on the long-term funding, benefits policy and benefits design alternatives for retirement benefits for UC faculty and staff, taking into consideration the issues of market competitiveness, workforce development, affordability and sustainability. The Task Force is expected to make recommendations to the President for subsequent submission to the Regents.