1. UC Benefits Teach-In April 1, 2006 - South April 8, 2006 - North

2. Welcome Introductions Overview

3. Agenda 1.Welcome, Introductions & Overview 2.Benefits Basics 3.State & National Perspective -Break - 4.UC’s Pension & Plan of Attack 5.Panel - Framework for Fighting Back & Brainstorm 6.Break-Outs for each Union

4. Si, se puede! We can protect our UC pension and retiree health!

8. Benefits Basics

9. Pension Different kinds Benefits, Contributions, Funding Level Retiree Health Insurance

10. What is a Retirement Plan? Monthly income after you retire Earn it during your working life

11. Got Retirement? UnionNon-Union Source: BLS 2004 Data.

12. How do Retirement Plans Work? Contributions Retirement Investment Earnings

13. 2 Types of Retirement Plans 1.Defined Benefit – benefit is defined in advance--“Pension” 2.Defined Contribution (DC) – contributions are defined, but benefit is not defined.

14. Defined Benefit (DB) Guaranteed benefit Contributions are employer paid or shared Amount required to fund the plan fluctuates

15. Defined Contribution (DC) Contribution amount is known, but benefit is unknown You get whatever there is when you retire Employee makes investment decisions, and often decides how much to contribute, if anything

16. Got Pension? UnionNon-Union 73% DB 16% DB Source: BLS 2004 Data.

17. How Much Do You Get When You Retire? Defined Benefit formula: How old when you retire? How long did you work? What was your salary?

18. How Much Do You Get When You Retire? Defined Benefit formula: Age Factor X Years on the Job X Average or Highest Salary = Benefit Age factor: %, based on age at retirement, used to calculate retirement income.

19. UCRP Benefit Formula Basic Retirement Formula - Example Retire @ 60 = 2.5% age factor 30 years at UC $12.50 / hour ($2000 / month) $1,500 Monthly Benefit COLA – at UC, formula based on inflation Reduced if you receive Social Security checks

20. What is Retiree Health Insurance? Health Insurance after retirement (or payment of medical bills after retirement) 2 Types: –Pre-65 (pre-Medicare) –Post-65 May include prescriptions May include survivor health insurance

21. Retiree Health Insurance National Context History of “Pay-as-you-go” – not setting aside money every year (like for pensions) New Regulation requires governments to report how much it costs… a lot…$60B for State of CA, $10B for UC Some government employers will start to pre-fund Retiree health is not vested like pensions are

22. Retiree Health Insurance At UC You are eligible for some benefit after 10 years, full benefit after 20 years employment. CNA, CUE & UPTE won retiree health protection in their 2005 contract Where not protected by contract, UC can change or stop their contribution to retiree health.

23. Health Insurance National Context -Costs are increasing, due in part to large profits in healthcare industry -Increasing numbers of uninsured -National Crisis, which ultimately will require a single payer solution At UC -UC currently pays on average 89% of the cost -UC each year is shifting more costs onto the employees, especially for family coverage

24. State & National Political Context

25. UC’s Pension & UC’s Plan of Attack

26. Outline 1. Pension & Benefits at UC 2. Comparisons 3. UC’s Plan of Attack

27. 1. Pension & Benefits at UC

28. UC Pension Benefit Formula Contributions Funding Levels

29. UC Pension Benefit Senior Custodian Wage (max) $32,028 Retire at age 65 after 15 years at UC Pension $11,412

30. UC Contributions History 1980s Employer: 4% - 16% Employee: 2-3%

31. UC Contributions History 1991 – Present: fully funded from investment earnings Employer: “Contribution Holiday” Employee: 2% redirected to DC Plan

32. UC Pension Funding Level 148% - 2001 110% - 2005 100% - 2009 85% - 2014 * Assumes no new contributions.

33. 2. Comparisons

34. Pension – Sr. Custodian Retires at Age 65, 15 Years of Service

35. Comparisons: Funding Levels UC Pension: 110% CalPERS Public Agency: 87% US Public Pensions, Avg.: 85%

36. 3. UC’s Plan of Attack

37. UC’s Plan of Attack Overall Package Wages Pension Retiree Health Healthcare

38. UC’s Plan of Attack – Part I March 2006 Regents Voted Restart contributions July 2007 (nonrep) “Shared” – phase in up to 8% each? Total contribution phased in to 16% May 2006 Regents Plan to Vote Specify employee & employer contributions (%) thru 2010

39. UC’s Pension Attack – Part I Senior Custodian Wage $32,028 Pension contribution $2,562... Like an 8% pay cut!

40. UC’s Pension Attack – Part II 2-Tier “Exploring” new plans w/ lesser benefits

41. Health Insurance Attack UC may want to cut it’s share of health care costs, from 89% (2005) to 68% (2010).

42. Retiree Health Insurance Attack Reduce / Cost Shift 2-Tier – may reduce benefit for new employees

43. Why now? Pension 100% funded until 2009 Most unions bargain in 2007/08 Arnold Let’s slow UC down!

44. Fight Back! CNA, CUE & UPTE won protections for pension & retiree health, with right to bargain & strike AFSCME also has protection, because our contract ties us to everyone else Reach out to other workers at UC, our Allies and Politicians to stop UC Fight together and win! We can do it! ¡S Í se puede!

45. Questions & Answers

46. Framework to Defend our Benefits Educate & Mobilize members Make UC slow down so we can fight changes Share information and work together Reach out to unrepresented Workers, Faculty & Allies Politics key to this fight - help defeat Arnold for Governor

47. Brainstorm Brainstorm How to Defend our Benefits Discuss at UC Union Coalition