"The University of California began internal borrowing to pay pension costs six years ago ... 35 percent of the 6,411 eligible UC new hires chose a 401(k)-style individual investment plan, instead of a pension, during the first 10 months of the new program that began last year ... A new pension funding plan approved by UC Regents last month -- increasing the total loans to $6.4 billion and raising employer rates from 14 percent of pay to 15 percent -- only assumes 20 percent of new hires will choose the 401(k)-style plan."

MORE >>