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Benefits November 12, 2008
UC Lifts 18-year Hiatus on Employee Retirement Plan Contributions
November 12, 2008 (PLANSPONSOR.com) - Participants
in the University of California Retirement Plan will begin
making contributions next year to offset losses from the
financial crisis, after an 18-year contribution
hiatus.
Reported by Rebecca Moore
UC President Mark Yudof wrote in a letter Monday to UC employees that contributions from both the university and employees will be required to maintain the long-term financial health of the retirement plan, according to the San Francisco Business Times. “As of October 31, 2008, the UCRP investment portfolio has experienced an estimated decline of approximately 24% for the current fiscal year,” Yudof said.
The Business Times said Yudof noted that nearly 80% of the current UC workforce has not contributed at all to their individual accounts due to the 18-year hiatus.
The move by the university comes as reports show foundations and endowments have been hit hard by investment losses (See Foundations and Endowments Hardest Hit in Q307 ). According to the news report, Moody’s Investors Service expects the typical endowment to see a 30% decline in value this fiscal year.
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