Six-Figure Pensions For University Of California Teachers Surge 60% Since 2012

Tyler Durden's picture

Back in January 2017, the University of California system of schools approved their first in-state tuition hike in six years.  And while one might hope that the extra millions of dollars raised as a result of those hikes would go toward a better education for students, in reality, a large chuck will go to fund the exorbitant pensions of retired teachers. 

As the Los Angeles Times recently pointed out, there are over 5,400 retirees in the UC system drawing over $100,000 per year, a 60% surge since 2012.  Moreover, there are nearly 3 dozen former teachers drawing over $300,000 per year. 

Last year, more than 5,400 UC retirees received pensions over $100,000. Someone without a pension would need savings between $2 million and $3 million to guarantee a similar income in retirement.

 

The number of UC retirees collecting six-figure pensions has increased 60% since 2012, a Times analysis of university data shows. Nearly three dozen received pensions in excess of $300,000 last year, four times as many as in 2012. Among those joining the top echelon was former UC President Mark Yudof, who worked at the university for only seven years — including one year on paid sabbatical and another in which he taught one class per semester.

 

The average UC pension for people who retired after 30 years is $88,000, the data show.

 

In fact, the LA Times even provided this helpful chart detailing which former professors are sticking it to current students, and their parents, the most....apparently the prize goes to former UC President Mark Yudof who collects $357,000 per year after working for only 7 years in the university system.

 

Meanwhile, if just reviewing the list above isn't enough to make you violently ill, consider how Yudof managed to secure his $357,000 in annual payments.  To summarize, he negotiated a sweetheart deal that capped his pension payout after 7 years, he worked 5 of those years, took a "sabbatical year" for "health reasons" in year 6, and taught 1 class a semester in year 7 before retiring with a pension worth millions.

The top 10 pension recipients in 2016 include nine scholars and scientists who spent decades at the university: doctors who taught at the medical schools and treated patients at the teaching hospitals, a Nobel Prize-winning cancer researcher and a physicist who oversaw America’s nuclear weapons stockpile.

 

The exception is Yudof, who receives a $357,000 pension after working only seven years.

 

Under the standard formula — 2.5% of the highest salary times the number of years worked — Yudof’s pension would be just over $45,000 per year, according to data provided by the university.

 

But Yudof negotiated a separate, more lucrative retirement deal for himself when he left his job as chancellor of the University of Texas to become UC president in 2008.

 

“That’s the way it works in the real world,” Yudof said in a recent interview with The Times.

 

The deal guaranteed him a $30,000 pension if he lasted a year. Two years would get him $60,000. It went up in similar increments until the seventh year, when it topped out at $350,000.

 

Yudof stepped down as president after five years, citing health reasons. Under the terms of his deal, his pension would have been $230,000. But he didn’t immediately leave the university payroll.

 

First, he collected his $546,000 president’s salary during a paid “sabbatical year” offered to former senior administrators so they can prepare to go back to teaching. The next year he continued to collect his salary while teaching one class per semester, bringing his tenure to seven years and securing the maximum $350,000 pension.

 

In 2016 he got the standard 2% cost-of-living raise, resulting in his $357,000 pension.

It's almost as if he planned to scam the system from the moment he signed his contract...

Pension

 

Of course, with a $15 billion funding gap, the UC's pension ponzi is only getting started with their plans to jam their soaring pension costs down the throats of students and their parents...

“I think this year’s higher tuition is just the beginning of bailouts by students and their parents,” said Lawrence McQuillan, author of California Dreaming: Lessons on How to Resolve America’s Public Pension Crisis. “The students had nothing to do with creating this, but they are going to be the piggy bank to solve the problem in the long term.”

...but it's ok because the kids will just take out more student loans which will all be socialized at some point anyway.

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Crazy Or Not's picture

Is this a thank you for organizing AntiFa riots?

SHEEPFUKKER's picture

Shutting down free speech at UC campuses so they can protect their 6 figure pensions.

Captain Chlamydia's picture

As we type in this topic,  just 20 comments so far. But ZH fans managed to puke out 547  comments on Trump saying NFL is going to hell . ...

MillionDollarButter's picture

Big surprise, a Ukrainian Jew.  Also, his successor, Janet Napolitano, was also Michael Chertoff's successor at DHS.  Must be a key position.  Maybe it is the research that is sponsored there.

IH8OBAMA's picture

Who said crime.... er... teaching doesn't pay?

a Smudge by any other name's picture

So.....redistribute the wealth?

Keyser's picture

And what happens to this ponzi scheme when enrollment drops due to in-state residents fleeing the tax-me-to-death state of Mexifornia? Soon we will see retired antifa professors protesting their own schools for failure to pay pensions on time... I love how liberals eat their own...

Bigly's picture

Now THAT'S chutzpah!!!

 

Conscious Reviver's picture

Revolting! Btw, is Yodof Jewish?

Conscious Reviver's picture

Janet's a total scum bag too of course.

"Napolitano's UC hid $175 million while demanding money, audit says"

http://www.foxnews.com/us/2017/04/26/napolitanos-uc-hid-175-million-whil...

auricle's picture

Pensions are often defaulted on in the 'real world'. Tick Tock. 

Miffed Microbiologist's picture

This is why in California we are seeing a lot of people cashing out. I know of a tech in the UCSD system that cashed out for 800,000 and is relocating to the Philippines where she expects to live like a queen. The only bad part is you lose having free medical for the rest of your life but that doesn't appear to stop them.

Miffed

Endgame Napoleon's picture

Here is the way it works in the real world for most employees: zero pension, no matter how hard you work, how many sales you make or how long you last at the job. Zero. While you work, you usually do not get enough pay to cover rent.

You enjoy zero sabbaticals unless you are in the frequently absentee, back-watching mom cliques. Even then, it is probably unpaid absenteeism, although I have seen a few absenteeism-gang members gaming the clock-in / clock-out system at work. Of course, most college teachers do not take sabbaticals at all, ever.

If this chart is the norm, California is not typical of teacher pensions to say the least. It also sounds like some those professors were in the top echelon of university faculty in the entire country, with a noble laureate on that list and so forth.

Administrators always get paid far more than professors. You could make a good argument that tuition is rising due to a superfluous number of administrators. You need a dean of each school, a chairman of each department and a college president. You do not need multiple VPs, heads of centers of excellence and six-figure administrators to run centers with identity politics themes.

Teaching is not supposed to be a for-profit enterprise, generating six-figure pay outs at regular intervals. And it is not in most cases, not now and not in the past, although professors in past eras did have a much better chance at steady, tenured positions with good pay, not great pay by any means. As women entered the workforce en mass, too many people got PhDs. Too many people are chasing the full-time faculty positions, reducing the value of the degree.

If you studied the payrolls of CA's state universities, I bet you would find a bunch of part-time / temp faculty, teaching the students whose parents spend so much money on college tuition.

Compare the number of full-time faculty from decades past to the temporary, part-time professors of today, juxtaposing that with the pay and the rising numbers of administrators over the years. The administrators usually teach few classes.

Northern Flicker's picture

"If you studied the payrolls of CA's state universities, I bet you would find a bunch of part-time / temp faculty, teaching the students whose parents spend so much money on college tuition."

So true - that's the way it works - part-timers. at minimum pay. carry the load.

techpriest's picture

Its worth defining our terms: "For profit" means that the profits (revenue minus expenses) are distributed directly to the owners/shareholders. "Non-profit" merely means that the profits are not distributed in the same way.

Once a certain size of bank account is reached, the non-profit basically spends everything so as to have a net-neutral year. This is not the same as "charity," in which all profits go back to additional service to the charity's served population.

In this case, universities are "non profit," but they are terribly wasteful with the money. Education can be done better for less, and indeed it *is* being done better for less by for-profit companies like Lynda, all the way down to guys writing and selling their own books.

what happened's picture

 

They have the students so brain washed, if my son even questions liberal notions about spending, he is shot down and ridiculed on campus.

LindseyNarratesWordress's picture

The awakened(ing)-masses are not going to tolerate the INTENTIONAL and MANUFACTURED destruction of our nation, for-ever, and I just do not think that (((soros))), and his ilk, appreciate that FACT...

 

Lindsey

GunnerySgtHartman's picture

People who pay attention to the corporate world rightfully get pissed about "boardroom inbreeding," fat retirement packages, golden parachutes, and all.  But academia gets nowhere near the same attention, and the inbreeding is much, much worse.  Thanks to ZH for exposing this!  Keep it up!

hawaiian waverider's picture

As well, they have focused the students  er customers into left worship and ideology from an early age.  So, the students with their massive wisdom will rage about things like race and the environment when in reality, they should rage about things like the debt both gov't and student loans being shoveled on their shoulders.  Student loans at he parent level is 8% how fcked up is that?  Such a random and high number set by congress for debt that can't be discharged through BK makes it much safer than some fracking co leveraged balls to the wall.  

techpriest's picture

Like I said in the post above, for far too long folks have confused "not-for-profit" with "charity," and also made the assumption that charity=righteousness.

Years ago I remember when the United Way screwed the Boy Scouts by cutting funding 90% to please the gays, while still leaving 10% so they could tell patrons they gave to us. I realized ever since that many "non-profits" are in reality graft engines for connected individuals.

My wife also did catering for a university - they tax the Christian students with high student fees while throwing very expensive parties for LGBTQ organizations. Shameful.

DavidFL's picture

Well - Lets hope Yudof dies soon! But I suspect the "health reasons' are a scam also.

Mind the GAAP's picture

After Kalifornia secedes, they can start printing their own worthless currency to keep these pensions afloat. 

Everybody gets a pony.

Endgame Napoleon's picture

They have a bunch of pensioners, including a bunch of mom-clique workers in social services, like the 80 to 90% minority-staffed Department of Human Services where I once worked. To get civil servant status there, you needed to be both a momma and a minority.

what happened's picture

 

This is one of the biggest frauds going and they are kidnapping and destroying generations of children to fund the party.  All the politicians know, but they play along and also get money off of legislatior run programs like group homes.  All on the federal dime which we pay for in spades.  The results actually cause worse abuse and a cycle of despair for those who are trepped in their extortion schemes.  Read this you will be shocked.  http://www.huffingtonpost.com/entry/the-2017-child-protective-services-c...

aliens is here's picture

Good fleece the retarded students and parents for allowing this to happen.

onewayticket2's picture

That's what gets me.  Millenials are overwhelmingly for liberal spending policies.

 

they WANT to be left with the bill. (??!!)

 

fascinating stupidity

Antifaschistische's picture

student loan defaults are being hidden from the public.  The millenials have no intention of paying it all back.  there are no "investors" in student loans.   all part of the central bank conterfeit debt creation process.

We will ALL pay, one day, with a dollar that's worth 1/3rd of what it is now.   At least I hope those pension payouts are NOT inflation indexed.

ed31337's picture

I dunno dude... The article mentioned something about him getting a "2% cost of living" increase to his pension...

Endgame Napoleon's picture

They want free college. I actually think college should be financed for the truly elite students. This would not have been me, sigh. Fewer people should go to college so that degrees mean more, like they did in the past. But the crème de la crème of students in hard subject areas should not have to take out massive loans to go to college, especially in fields that are truly beneficial to society, like the medical field.

what happened's picture

 

No they are filled with a bunch of nonsense at Universities by their overcompensated professors, and they are encouraged to ask for free stuff too.

gilhgvc's picture

those who can, do. those who can't, teach.

Hugh_Jorgan's picture

and... Those who can't Teach, Coach.

chrsn's picture

If you're not a part of the bureaucratic machinery, you're getting treated like a prison pass-around

Collectivism Killz's picture

Next time a Bernie bro bitches about education costs.........

venturen's picture

why are Democrats SO STUPID?

The Democrats don't realize Trump is going to turn the blacks to him...and they are DOOMED. Though RINOS are doing their best

Able Ape's picture

This is plain NUTZ!...

BSHJ's picture

And people across this great land collectively go.......oh, ok.

shimmy's picture

A 300k+ pension. hahahaha, wow. I went into the wrong industry given how absurd teacher pensions. 

alexcojones's picture

Meanwhile , not all California pensions are created equal, as Zerohedge pointed out a year ago

CalPERS Threatens To Slash Pension Benefits By 63% For Some ...

 

IH8OBAMA's picture

No problem.  I'll take 63% of the $300,000 pension.  Where do I collect?

chairman of the bored's picture

Arithmatic is hard....slashed 63 means 37 left...still 100k a year,count me in!!

lasvegaspersona's picture

No problemo...as long as California can print it's own currency everyone will be fine at least nominally.

CalBux...coming soon.

yellowsub's picture

Just looking at some of the salaries for education in NJ should make anyone wonder how they can afford current and retirees?

This is why you can't have an improved education when it costs too much to pay teachers.  

Seriously, gym teachers at elementary level making 6 figures?!

http://php.app.com/agent/

 

adr's picture

And they only work the equivalent of six months. Well 180 days. 

Actually most full time teachers have two weeks paid vacation and four to eight paid personsal days. So we'll say 160 days. They also work on average 32 hours a week. 

The average 9-5 private sector worker spends 250 days at work if they take two weeks off with 40 work hours a week. 

So a $100k a year teacher makes around $3,000 more per month of time worked as a $100k full time private sector job. Even more when you consider the fewer hours worked. 

 

 

JohninMK's picture

Wonder if Yudof gets a Texas pension as well?

ReturnOfDaMac's picture

Although not that much bettter, the Texans would prolly go 2nd amendment on his ass if he pulled something like that over there.