Pension Bulletin: The $2,000 Pay Cut

THE PROBLEM:

UC did not put a single penny into the pension fund for over 20 years. Workers, on the other hand, paid 2% to their retirement. To avoid paying their fair share, UC executives are proposing major changes to our benefits. These cuts not only hurt UC’s ability to recruit and retain quality staff for patient care and public services, the cuts also put a greater burden on state services by forcing low-wage workers to retire in poverty. Today we focus on UC executives’ scheme to make you take a pay cut for the pension.

THE FACTS:

FACT: 400 UC executives receive an annual 5% bonus that gets put into a separate retirement account. This is in addition to the retirement benefits that other employees receive!

FACT: Assuming an average salary of $200,000/year, the total cost of this retirement perk for UC executives is $4 million per year!

FACT: The amount that is spent on providing this one executive perk could be used to help thousands of low-wage workers afford pension contributions!

UC executives’ misplaced priorities are putting the pension plan at risk! UC executives need to pay their fair share and leave the benefits alone! Cutting wages and benefits puts low-wage workers into poverty and hurts recruitment and retention of front line workers.

Travis Hansen, UC Merced Groundskeeper

“I started working at UC Merced because of the good benefits. Now, with the majority of my check going towards my house payments and meals, after the furloughs, health care increases and pension increases I will not be able to survive.”

Rebecca Mulay, UC Riverside Custodian

“The pay cut has forced me to use up all my savings, my life insurance money, and now I have nothing left. I can barely afford to pay my rent, and I’m having trouble buying my food and medicines. The cuts may seem small, but they are causing a big negative impact for my family.”