August 30, 2017

(1) More UC Attacks on Retirees: Pension, 401k and health benefits
UC has brought Fidelity into the new employee orientation process to sell the defined contribution (like a 401k) retirement savings plan they run for UC. Not surprisingly, without alternative information, Fidelity is convincing almost twice as many people to take the risky savings plan and to opt out of the pension plan (UCRP). This jeopardizes the stability of the pension current employees have been contributing to and on which we are counting for a secure retirement. Fidelity thus makes money at our expense.

UPTE, AFSCME and CNA have all firmly told UC we will defend our pension. In every instance where an employer has moved new hires away from a pension plan and on to a 401k, the pension ends up suffering and the employees end up paying more for the same benefits. In addition, 401k plans have been shown to be much riskier investments with a lower return than pension plans, endangering the retirement security of those employees.

Together our three unions fought hard in the last round of bargaining to preserve a maximum pension at age 60 (rather than age 65, which was what UC proposed). We agreed to pay an additional 1% of our pay for a secure retirement. We will fight this together and will win again to make sure that our investment pays off.

Among the many drawbacks of a 401k is that the employer can change the conditions at any time. That is exactly what UC has already started by changing the fee structure and adding a $8.75 quarterly administrative fee in addition to the fund fees for each investment you choose.

If that wasn’t enough, UC wants to continue its dramatic cost-shifting for retiree health benefits. Retirees under the age of 65 have seen their monthly premiums triple over the last decade. Now UC wants to hit these already retired employees (and us when we retire) with even more increases. They have not yet specified how much more but they have ominously proposed lifting the “70% floor” that they pay for retiree medical benefits.

(2) Attend the Union Town Hall To Defend Our Pension at Your Campus
Together we can win! Come to the launching of our joint campaign with AFSCME and CNA to fight UC’s attempt to undermine the pension plan we fought to keep. We contribute 9% of our pay checks into a great plan that provides a pension we can afford to retire on and UC wants to let Wall Street investors take a cut out of our hard-earned pension.

The Town Halls will take place at all campuses the week of October 2. Stay tuned for the details at your campus.

UPTE-CWA
UPTE-CWA 9119 | P.O. Box 4443, Berkeley, CA 94704 | 510-704-8783 | info@upte-cwa.org