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Dean Edley Says to UC: Give Me More Money

The UC's highest paid individuals are asking the Regents to make good on a 1999 promise to extend executive benefits along with the IRS imposed ceiling. In 2007, the IRS allowed executives making over $245,000 year (roughly 4 times the median CA income, for those of you keeping track) to increase their benefits and still keep them out of that dreaded top tax bracket. Now, Dean Edley, and 35 other UC employees want their already handsome pension plans increased further to keep in line with the new cap (enriching themselves while avoiding paying "excess" taxes).

Of course, this request ignores the fact that the UC's pension fund has a $21.6B gap in funding and this request would only exacerbate that gap. Where will the money come from? Maybe from more layoffs for UC employees making the least and more fee hikes (since that seems to be how the UC continues to deal with its budget issues). Instead of sucking it up (like Dean Edley continues to suggest we do at town hall meetings), these executives have said in their letter to the Regents that it would be "highly demoralizing" to not receive these extended benefits.

There are only two executives from UC Berkeley asking for this increase: Dean Edley and Dean Richard Lyons, of Haas.

I'd love to hear Dean Edley explain how continuing to raise student fees and tuition, plus a $21.6B shortfall in existing pension obligations equals the "ethical" outcome of him getting more money. This isn't 1999, Dean Edley. The country has been hit by a continued financial crisis that has plunged many into bankruptcy. It has weakened the job market. It has forced most of us making below the top 5% in the United States to adjust our budgets and our ways of living to meet new financial realities. But, I guess if you're on top, you have the power to just keep holding your hand out and demanding what's yours. 'Tis the season, as they say.

Full post as published by Nuts & Boalts on December 29, 2010 (boomark / email).