Highest-paid University of California execs demand millions in benefits

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Three dozen of the University of California's highest-paid executives are threatening to sue unless UC agrees to spend tens of millions of dollars to dramatically increase retirement benefits for employees earning more than $245,000.

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The fatter executive retirement benefits the employees are seeking would add $5.5 million a year to the pension liability, UC has estimated, plus $51 million more to make the changes retroactive to 2007, as the executives are demanding.

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They want UC to calculate retirement benefits as a percentage of their entire salaries, instead of the federally instituted limit of $245,000. The difference would be significant for the more than 200 UC employees who currently earn more than $245,000.

Under UC's formula, which calculates retirement benefits on only the first $245,000 of pay, an employee earning $400,000 a year who retires after 30 years would get a $183,750 annual pension.

Lift the cap, and the pension rises to $300,000.

The executives say the higher pensions are overdue because the regents agreed in 1999 to grant them once the Internal Revenue Service allowed them to lift the $245,000 cap, a courtesy often granted to tax-exempt institutions like UC. The IRS approved the waiver in 2007.

http://articles.sfgate.com/2010-12-29/news/26349177_1_uc-employees-uc-system-higher-pensions

Edited January 3, 2011 by \

[I AM NOT THAT GUY 5,715]

Screw them. Where are the tar and feathers? I got the rail around here somewhere...