4/8/2013: Update: Marcin asked me to move this to the top of the blog, in case people had additional comments.
3/22/2013: Dear Union Bargaining Team,
I would like to raise your attention to enormous inequity in ORP retirement contribution rates between two different tiers of university faculty. I think this should be a subject of bargaining negotiations, e.g., a part of the union salary package. There has been a UO senate resolution last fall, see:
These rates can be found see page 8 in Decision Making Guide available at OUS website:
In short, the inequity between tier 1/2 (all those hired before 2003) and tier 3 members (hired in 2003 until now) is ENORMOUS and it will be even BIGGER starting in July 2013.
Currently (until June) Tier 1/2 members are getting 16.14% employer contribution, whereas Tier 3 members get 6.21%. In July, Tier 1/2 will be getting 20.90%, whereas we tier 3 will experience a minimal gain to 6.42%. That is, Tier 1/2 will be getting 14.48% more of their TOTAL salary toward retirement than Tier 3. Fortunately for Tier 3 members the university pays 6% employee contribution for all tiers. However, “the 2013-2015 Employee Contribution rate is subject to legislative, executive, management or collective bargaining action”. So we cannot be sure of that.
I think this is shockingly unfair and something has to be done about it. Note that 14% difference in total compensation package (salary+benefits) is much more than the salary raises we can dream of in the next few years.
Do you think anything can be done to reduce this enormous inequity?