UC execs' demand for more benefits angers many

Gov.-elect Jerry Brown, state lawmakers and others minced few words Wednesday in condemning high-paid executives at the University of California who are threatening to sue UC unless it spends millions of dollars to increase their pensions.

"These executives seem very out of touch at a time when the state is contemplating billions of dollars in reductions that will affect people who are far less advantaged," Brown said.

Their demand comes as UC faces $21.6 billion in unfunded pension obligations and is reducing benefits for its workers.

UC President Mark Yudof opposes the increase, but withdrew a recommendation to block the boost to give the regents time "for further review," he said through a spokesman.

In a Dec. 9 letter to the regents, 36 executives from UC headquarters, UCSF, UC Berkeley and other campuses warned that they will sue unless the regents lift a $245,000 cap on how much salary can be considered when calculating pensions.

Lifting the cap would cost $5.5 million a year, with another $51 million to make it retroactive to 2007, as the executives want. The change would add tens of thousands a year to the pensions of the most highly paid executives.

The executives declined to comment for a Chronicle story revealing their threat and continued their silence Wednesday.

But politicians and UC alumni did not hold back.

"These individuals have a limited view of what the UC system should be," said Assembly Speaker John Pérez, D-Los Angeles, also a regent. "When we see fee increase after fee increase at UC, the last thing we should be doing is increasing benefits for the most highly compensated people."

Assemblyman Jerry Hill, D-San Mateo, said he will introduce legislation next week to try to prevent the regents from increasing retirement benefits to the more than 200 employees earning more than $245,000.

Hill said he hopes the executives "rethink their decision based on the financial condition of UC" and California's $28 billion shortfall.

State Sen. Leland Yee, D-San Francisco, accused the executives of "truly living in an ivory tower. They don't care to know that there are people suffering in the rest of the state and losing their homes."