The State Assembly reprimands increases the 401K new plan contrary (Chinese translated)

(WASHINGTON)

Pension Assistance Program, University of California recently passed that allows high-income earners to bypass the provisions of the previous limit of retirement compensation, is expected to lead the University of California to spend the next 15 years more than 500 million yuan.

State education budget before the House subcommittee voted to repeal the program before the increase will be allocated to increase temporarily detain the original pension stabilization fund (Pension stabilization funding).

2015 state capital budget provides that after July 1, 2016 entry of the University of California employee pension benefits in accordance with the restrictions on the IRS (IRS) regulations 2016 limit of 11.7 million, in return, the University of California, 400 million 36 million yuan within three years, the state capital appropriation to cover pension liabilities.

Although retirement compensation set limits, but the University of California Board of Directors in March adopted a new retirement plan 401k, no longer limited to only 117,000 yuan for the former employee payroll quota of 8% pension, but before 265,000 yuan, this means pension expenditures to increase the annual income of over 265,000 yuan 7400 yuan employees.

University of California, on behalf of the employees union AFSCME Local 3299 President of the Kathryn Lybarger said: “This program allows executives to the University of California legislators to bypass the limits they set up, which will lead to the University of California in the next 15 years, additional cost 500 million yuan . ”

He had prescribed limits, in response to recent University of California Payroll executives rapid growth. Beginning in 2004, the University of California employees pay more than 265,000 yuan of five-fold increase in the number, more than 1 billion yuan annual salary expenditure. In 2004, only 626 people pay to 26 million, while in 2014 this figure increased to 3343 people.

For the full article, click on the link below. (Chinese)
[Source]: singtaousa.com