Friday, May 12, 2006

Assets associated with any LANL UCRP members

Submitted by Anonymous:
__________________________________

Check this out:

http://www.universityofcalifornia.edu/regents/regmeet/may06/3c.pdf

Read the last sentence of the first paragraph:

"No action on creating a separate plan or on the final transfer of
liabilities and assets associated with any LANL UCRP members is being
proposed at this time, as discussions with the Department of Energy (DOE) on
these topics are ongoing."

Comments:
This post has been removed by a blog administrator.
 
Good2go, I think you need to reread the document carefully before claiming the sky may be falling.

"...transfer would be authorized only upon approval by the DOE and upon a finding that the employee's transition to LANS is critical to the furtherance of LANL’s [sic] ongoing mission."

The context is for future LANS hirees (not current transferrees) coming from the UC system (thus "critical employee" status isn't applicable, in this context, to transitioning employees). Currently, such people would have to come in under TCP2. This is actually good news, since it implies TCP1 might not be a totally dead-end plan (no new members) at its inception.

"...arrange for an initial transfer of UCRP assets or ‘seed money’ to the LANS defined benefit plan.."

The document spells out that "seed money" is just for allowing LANS TCP1 the liquidity to meet anticipated near term obligations before the final major transfer of assets occurs. Examples would be the need to provide benefits for survivors of a TCP1 member who dies this summer, or to provide benefits to a TCP1 member who decides to retire, say, on July 1, 2006. UC justifiably could have left TCP1 pennyless until the final transfer--I'd consider this evidence that UC does have the interests of TCP1 people in mind.

"In order to maximize the investment return in the UCRP for the benefit of all members, it is recommended that UCRP assets be transferred to the LANS defined benefit plan on a monthly basis.."

Pending the determination of the final amount of assets to be transferred, I don't see any problem with UCRP paying seed money monthly. This all comes out in the wash, anyway, when the final amount to transfer is determined since the seed money (and interest accrued or lack, thereof) will be counted as part of the transferred assets.

On balance, I don't see a shred of evidence that UC is planning to "stiff" employees who opt to go to TCP1. They did acknowledge that it will be a complicated valuation problem that may not be resolved for a while yet, but this isn't exactly new news.
 
good2go - You must be reading a different document. People need to read the whole thing. You are leaving out important parts that make your arguments invalid.
 
I shall go back and look at it a little closer. However, the
transfer of assets from UCRP to TCP1 is a critical issue. It
is not in UC's interest to be generous on this point, and
as UPTE has pointed out, we may have some serious "conflict
of interest" issues in this regards.

You are correct about the 'seed money' and the monthly payments
to TCP1. This appears to be an interim solution until the
details can be worked out on just how much in final assets
will be transferred from UCRP to TCP1. It's anybody's guess
just how long this interim period might last.

So as to not cause anyone undo distress on this issue, I will
delete my initial posting.
 
No distress here.
 
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