Doghouse Pension Politics
Another negative report about the University of California appeared last weekend, this time on the front page of Sunday's Los Angeles Times . The headline summarized the storyline: "UC is handing out generous pensions, and students are paying the price with higher tuition." The piece has some analytical problems, but that doesn't keep it from painting a powerfully dark picture of the UC system. I should say up front that I appreciate the investigative efforts of the piece's author, Jack Dolan, and his Times colleagues to collect internal university data and to report coherently on an important issue. UC employees have been treated to two major pension tierings in less than a decade (where new employees get reduced benefits). They have had their contributions increase from 0 to 7-9 percent of pretax salary depending on their employee group, during a period of de facto salary freezes. No UC employee group ever requested the "contribution holiday" ...