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UC System Ups Retirement Age

University of California employees will work longer before retiring – and pay more for health care when they do. The changes were approved by the UC Board of Regents Monday.

UC President Mark Yudof said the system faces a $21 billion shortfall in its retiree pension and health care programs, along with uncertainties due to the state’s budget problems.

“My first obligation is to be a realist,” Yudof said. “The budget must be balanced. The payroll must be met. The faculty needs to be hired, the students enrolled and services provided to them, pensions made secure and the bills paid.”

The Board voted to increase the minimum retirement age from 50 to 55 for most workers hired after July 2013. The age for maximum pension benefits would be 65. Retirees would also pay a greater share of health care premiums.

The UC system must negotiate the changes with its labor unions. Some unions argue the later retirement age is unfair to workers with physically demanding jobs.

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