UC Davis Chancellor Linda P.B. Katehi issued the following statement today regarding the recent University of California pension matter:

“On December 9, 2010, a group of 36 University of California executives, including four top UC Davis officials, wrote to the Board of Regents asking that the university implement a decade-old proposal to lift the compensation limit used in calculating — and so, increase — retirement benefits for some of our most highly compensated employees. In their letter, the UC executives indicated their intent to sue UC if the board failed to implement the change. While only 36 signed the letter, the increased pension benefits would affect about 200 UC executives.

“Late last month, the letter received widespread media attention that ignited a significant outcry from members of the university community, elected officials and the general public.

“On January 4, UC President Mark Yudof and Regents Chairman Russ Gould issued a statement on the matter. In essence, the president and the chairman said that given the state's dire economic condition today, the university should not and will not boost pension benefits for its highly compensated employees.

“I personally agree with and strongly support President Yudof and Chairman Gould's position. While I have great respect for the four UC Davis leaders who signed this letter and understand their perspective, this demand comes at a time when our university is being asked to make many sacrifices and, as such, I do not support a change in the university's policy that would increase their retirement benefits.

“In just the past few days, many members of the campus community and friends of the university have written to me to express their concerns about the negative impact that the letter and the potential for a lawsuit will have on our fundraising efforts as well as our ability to continue to receive adequate support from the state. I do share these concerns. The coming year will be a particularly challenging one for the university, and this issue is likely to add to our challenges.

“Looking forward, our efforts and our attention should be focused on the positive opportunities and initiatives that will help UC Davis continue its climb toward success and excellence: engaging our $1 billion fundraising campaign, our vision of excellence, our initiative for a hate-free campus and our commitment to administrative excellence. We have much work to do, and I hope I can count on you for your continued support of the University of California and UC Davis.”

To read President Yudof and Chairman Gould’s Jan. 4 message, go to: http://universityofcalifornia.edu/news/article/24746.