Friday, January 7, 2011
A California Assemblyman wants to cap pension benefits for public employees making more than $245,000 a year. That’s the ceiling under IRS rules. However, the University of California has a waiver that allows it to grant larger pensions for employees with salaries above that limit.
San Mateo Democrat Jerry Hill has introduced legislation that would prevent the University – or any state agency – from handing out the bigger pensions.
“The last thing we should be focusing on is increasing pensions for public employees making over $245,000 per year,” Hill said. “So it’s just, it’s not a priority, it shouldn’t be a priority and I want to make sure it’s not a priority in the future either.”
Hill’s legislation comes as a number of UC Executives who earn more than $245,000 a year are considering legal action to get the University to increase their pensions.
UC President Mark Yudof said even though UC has the waiver, it is not obligated to boost the pensions.