27
The report of the Task Force is available at http://ucrpfuture.
universityofcalifornia.edu/files/2010/08/peb_finalreport_082710.pdf The Task Force also considered issues related to retiree health care, a program which is not pre-funded.
28
The STIP is a kind of “checking account� for UC to handle the
inflows and outflows of funds. A balance is needed since the timing of inflows and outflows do not necessarily match. STIP allows the university to make payments when they are due, even if the receipts to support those payments arrive subsequently. In effect, the decision to transfer STIP funds to the pension represented a decision that UC could operate with less liquidity than in the past. The UC bond rating in part depends on the university having adequate liquidity on hand.
29
Data from a report to the November 2011 Regents meeting
available at http://www.universityofcalifornia.edu/regents/regmeet/ nov11/f2.pdf and http://www.universityofcalifornia.edu/regents/ regmeet/nov11/f2attach1.pdf
Public Pension Funding
CPO_2012_final.indb 195
195
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