1. Current Issues in Human Resources & Benefits Judy Boyette Associate Vice President Academic Business Officers Conference April 4, 2005

2. Governor’s Compact is Good News for UC Returns to predictable increases in funding and fees to accommodate growth and costs While still tight, there is funding for UC’s basic needs

3. History of Compensation Funding

4. Compact with the Governor Funding for fixed cost increases:  2004-050%  2005-063%  2006-073%  2007-084%  2008-094%  2009-104%  2010-114%

5. 2005-06 Salary Funding Regents budget contains 3% funding request for salary increases for staff Also contains $23.7M for market & equity salary adjustments and health & welfare increases Guidelines for allocation and distribution of these funds are in progress

6. Pension Reform Proposals Governor supports changing public pension system from DB to DC for all new hires effective 7/1/07 Two pending bills in the legislature and one voter initiative underway UC has testified twice before legislative committees and met with the Department of Finance

7. Impact on UC Limitations on DC plan employer contributions would make UC less than competitive, especially for faculty UC has sought flexibility to design new plans to meet market and business needs

8. Retirement Plan Initiatives Regents approved a new 457(b) Plan, effective October 2004, to enhance retirement savings opportunities Master Record Keeper and new investment options in 403(b), DCP and 457(b) Response to public pension reform proposals

9. UCRP Funding Status Assumes 7.50% Annual Return Campuses Only (no DOE labs)

10. Medical Inflation and UC Costs $358 $ 635 $1,060 $347 $ 567 $723 200120052010 Cost $Millions UC contributions Gross premiums 2010 UC contribution = 68% 2001 UC contribution = 97%

11. Health & Welfare Initiatives 2003: Health Care Reimbursement Acct. 2004: Introduced 4 salary bands to equate premium cost to pay level 2005: Employee costs were generally held at 2004 levels 2006: Gross premium increases may be about 10%

12. 2004 Monthly Medical Costs for Employees Medical Plan UC <=$40K UC $40-80K UC $80-120K UC $120K+ StateFederalStanford Health Net Gross = $ 260 single $12$25$39$55$57$77$26 Gross = $754 family 3686141187159183218 Blue Cross PPO Gross = $407 single 8399118134287N/A197 Gross = $1,182 family 241301369416755 N/A740 Comparators

13. Staff HR Policies and Operations HRB Strategy: To assure consistent and accountable HR operations across the University in response to The Regents’ request to align location practices with systemwide HR/B policies and labor contracts “Appropriate consistency”

14. UC Leadership Institute (First Program 5/05) Program incorporates concepts of the People Management Initiative Systemwide in-residence training program for mid- level managers Web-based training modules Ready reference website for managers

15. Staff Advisor Pilot Program Approved by Regents in January Two year pilot, effective 7/1/05 Two staff advisors to two Regents’ committees - Grounds & Buildings and Educational Policy Initially, past two chairs of CUCSA Then select from all staff and non- Senate academic employees

16. Questions & Answers