The University of California retirement system faces a shortfall of more than $20 billion, according to a new report, and a task force of administrators and employees is recommending changes to help fix the problem.
The panel, which released its report publicly Monday, proposed such changes as increasing contributions made by the university and employees, raising the minimum retirement age for new hires and reducing some benefits.
Much of the problem with the retirement fund stems from a decision 20 years ago when UC and its employees stopped paying into the retirement system because it was believed to be overfunded, officials said. The university and employees resumed payments this year, but concerns about the possibility of unfunded pensions and post-retirement healthcare continue, according to the report.
Over the next few months, UC President Mark G. Yudof and the university's regents are expected to select and approve some proposals in the report. Some are controversial, and faculty members fear that they could hurt the ability of campuses to compete for new academic talent.