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

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.

Comments

Miffed Microbi… auricle Thu, 09/28/2017 - 07:13 Permalink

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

In reply to by auricle

Endgame Napoleon Captain Chlamydia Wed, 09/27/2017 - 18:48 Permalink

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.

In reply to by Captain Chlamydia

techpriest Endgame Napoleon Wed, 09/27/2017 - 21:20 Permalink

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.

In reply to by Endgame Napoleon

LindseyNarrate… Wed, 09/27/2017 - 17:30 Permalink

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

hawaiian waverider GunnerySgtHartman Wed, 09/27/2017 - 19:10 Permalink

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.  

In reply to by GunnerySgtHartman

techpriest GunnerySgtHartman Wed, 09/27/2017 - 21:26 Permalink

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.

In reply to by GunnerySgtHartman

what happened Endgame Napoleon Thu, 09/28/2017 - 08:06 Permalink

 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-…

In reply to by Endgame Napoleon

Antifaschistische onewayticket2 Wed, 09/27/2017 - 18:05 Permalink

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.

In reply to by onewayticket2

Endgame Napoleon onewayticket2 Wed, 09/27/2017 - 18:55 Permalink

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.

In reply to by onewayticket2

venturen Wed, 09/27/2017 - 17:38 Permalink

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

yellowsub Wed, 09/27/2017 - 17:48 Permalink

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 yellowsub Wed, 09/27/2017 - 18:08 Permalink

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.   

In reply to by yellowsub