Wednesday, February 11, 2009

UC employees to contribute to pension after 20-year hiatus

University of California employees next year will start contributing at least 2 percent of their pay to the UC pension fund, marking an end to a 20-year contribution hiatus.

UC leaders ended contributions in 1990, saying the retirement fund was gaining enough value on its own. But UC regents this week said economic troubles had led to investment declines, making it time to reverse course.

On April 15, 2010, employees will start contributing 2 percent to the fund. That percentage is expected to increase gradually.

Regents approved the change over the protests of dozens of employees, who complained they were not represented on the pension board. State legislators have asked the university to reform the board.

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