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The 91��Ƭ system is dealing with some daunting statistics in regard to retiree benefits:

• The retirement plan’s funded status is expected to decline from 95 percent to 61 percent by 2013, even with the restart of contributions in April 2010.

• Retiree health benefits are expected to cost the university about $250 million in 2010, and this cost is expected to grow by about $37 million a year.

The 91��Ƭ President’s Task Force on Post-Employment Benefits is now going around the system to discuss these “fiscal pressures” with staff, faculty and retirees. 91��Ƭ Davis’ turn is Nov. 9.

Three forums are scheduled, two on the Davis campus and one in Sacramento. Each includes a presentation on the issues, followed by time for questions.

The task force has been charged with developing options for balancing the long-term costs of retiree benefits with the need to provide competitive total compensation to faculty and staff.

According to the 91��Ƭ Office of the President, the task force will study the issues, weigh input from the 91��Ƭ community and then make recommendations to 91��Ƭ President Mark G. Yudof on ways to change the funding and policies for post-employment benefits.

91��Ƭ pays out about $1.5 billion annually in pension benefits, and the retirement plan accrues an additional $1.3 billion in pension liability each year for people who are still working.

Most employees, though — nearly 80 percent — have never put a cent into the retirement plan from which their future guaranteed benefit payments will be drawn.

In fact, neither 91��Ƭ nor any of its employees have made contributions since the early 1990s. That is when the 91��Ƭ Board of Regents declared a contribution “holiday” — at a time when the retirement plan was doing very well investment-wise.

Now, as this unprecedented “holiday” approaches the 20-year mark, the regents have ordered the restart of contributions, by employer and employee, effective on or about April 15, 2010.

Along with rebuilding its pension fund, 91��Ƭ also is dealing with skyrocketing health care costs for its employees and retirees. For retirees alone, the total cost of benefits is expected to climb from $250 million in 2010 to $373 million in 2013 and $610 million in 2018.

On top of this, 91��Ƭ’s financial statements must now include the projected cost of health insurance for the life of all retirees — those who are already retired and those who will retire in the future. Factoring in this long-term liability is a government mandate on all employers.

Today, 91��Ƭ estimates long-term liability of $13 billion — and figures this will double by 2018. In other words, the liability is increasing at a rate of more than $1.5 billion per year, according to 91��ƬOP.

“Such a significant liability could affect 91��Ƭ’s credit rating when borrowing money for campus buildings, hospitals and other projects,” officials said.

POST-EMPLOYMENT BENEFITS FORUMS

Three open forums are scheduled for Nov. 9, with staff, faculty and retirees invited. Release time with supervisory approval is appropriate for staff. Enrollment is limited; therefore, reservations are being taken.

• Davis campus—9-10:20 a.m. and 10:30-11:50 a.m., AGR Room, Buehler Alumni and Visitors Center. Enroll online at (search for “PEB”).

• Sacramento campus—2-3:20 p.m., auditorium, Cancer Center, 4501 X St. Enroll online at .

RETIREES: Contact the Retiree Center at (530) 752-5182 or retireecenter@ucdavis.edu to reserve seats.

WEBCAST: One session will be simulcast on the Web, and the recording will be archived for later viewing. Web links will be posted on the 91��Ƭ Davis home page () the day of the meetings.

MORE INFORMATION on the task force and its mission: