Hit by a “perfect storm” that combined a decade (2000-2009) in which the S&P 500 lost about 1% a year with a rising tide of pension obligations, public workers’ pension funds across the country increasingly began turning to riskier alternative investments (such as hedge funds) in an effort to boost returns and close the gaps in their underfunded plans.
As a widening scandal involving misuse of public funds and other ethical breaches by its top brass grips the University of California, The Sacramento Bee’s editorial board criticized UC’s largest employee union for advocating greater scrutiny of potential conflicts of interest at UC (“Let’s step back from UC Davis turmoil”; May 1). The board also criticized AFSCME Local 3299 for legislation that would encourage UC elites to stop squandering public funds on private contractors that exploit low-wage workers.
RELEASE: New 401k Benefits for UC Elites to Cost over $500 million, Assembly Panel votes to Block Plan (0)
Oakland: A new University of California retirement plan that encourages UC’s highest paid employees to circumvent the cap on pensionable compensation (also known as the PEPRA cap) required by the Governor as part of a 2015 budget deal to boost state funding for UC will cost the university over $500 million over the next fifteen years, according to a new actuarial study.