News Summary: UC pensions costs threaten academics

Associated Press

PENSION PRESSURE: Rising costs for pensions and retiree health benefits may require the top-tier, 10-campus University of California to cut academic programs and raise tuition — again.

ACCOUNT DEFICIT: The UC Retirement Plan's roughly $10 billion unfunded liability results from investment losses and a gap of nearly two decades when campuses, employees and the state did not contribute any money toward pensions.

DOUBLE BIND: As it grapples with the cost of using its generous retirement benefits to attract and retain talented employees, the UC system also faces unprecedented state funding cuts and already has sharply hiked fees and cut staff.

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