May 21, 2012
Gov. Corbett adds pension reform to budget agenda
It's an iceberg on the horizon. A vicious Pac-Man chomping larger and larger chunks out of the state's upcoming spending plans. A massive gorilla lurking the hallways of the Pennsylvania Capitol.
The commonwealth's pension liability for public employees is about to make state budgeting even more of a nightmare, and Republican Gov. Tom Corbett has put pension reform next on his to-do list...
LINK - Post-Gazette.com
May 17, 2012
SC Senate approves pension reform plan
The South Carolina Senate on Wednesday approved a pension reform plan that puts most of the changes on new employees.
Sen. Greg Ryberg said the bill shores up the state retirement system, ensuring workers receive checks decades from now, in a way that honors promises to current employees, thereby avoiding a lawsuit. Advocates for public workers have praised the Senate's plan.
"I feel confident from a legal standpoint, we're on firm ground," said Ryberg, R-Aiken, who led a panel that put together the plan...
LINK - CBSNews.com
May 3, 2012
Senate panel advances pension reform plan
South Carolina's current public employees would see fewer changes in their pension benefits under a Senate panel's plan than the House proposed.
A Senate subcommittee voted unanimously Thursday on its proposal for state retirement system fixes...
LINK - MidlandsConnect.com
May 2, 2012
Illinois Senate panel votes down pension measure
An Illinois Senate committee on Wednesday rejected a measure that would force local government to pick up the tab when it gives an ex-lawmaker a big paycheck to fatten his pension.
The bill passed the House on a 110-0 vote in March. The legislation sought to require cities, villages or other governments employing a former lawmaker for short periods of time to pay for the additional pension expenses that go with the new job, said House Republican leader Tom Cross of Oswego, who sponsored the bill in his chamber...
LINK - http://articles.chicagotribune.com
May 2, 2012
DeMaio Unveils Plan to End DROP “Double Dipping” in Pension System
Councilmember Carl DeMaio, one of the primary authors of the Prop B Comprehensive Pension Reform (CPR) Initiative, today unveiled another sweeping pension reform proposal to end the notorious DROP Program in the city’s pension system.
The DROP Program allows city employees to retire in place and retain their jobs for up to five years – resulting in a “double dipping” perk where city employees continue receiving a full salary while simultaneously receiving a full pension payout...
LINK - SDRostra.com
April 20, 2012
Public Employee Initiative Proposal - LAO Analysis
Pursuant to Elections Code Section 9005, we have reviewed the proposed constitutional and statutory initiative related to public employee retirement benefits (A.G. File No. 12-0008).
Background
Existing Public Employee Pensions. California governments currently offer comprehensive pension benefits to their employees. The benefits are funded from public employer and employee contributions, as well as investment earnings generated from those contributions. These pension benefits are provided through 85 state and local defined benefit pension plans. Some governments also contribute to retiree health and dental benefits for their former employees. The state government, for example, will contribute an estimated $1.7 billion to health and dental benefits of state and California State University (CSU) retirees in the 2011-12 fiscal year, according to the most recent actuarial estimate prepared by the State Controller’s Office (SCO)...
LINK - LAO.ca.gov
April 18, 2012
Pension Reform Effort Pivotal for CA
Among the hundreds of races and issues on the June 5 ballot will be a proposal in San Jose to modify the city's pension system.
"Pension reform," as proponents call it, has taken on a life of its own in the past few years as an element of employee compensation.
In 2010 alone, eleven local governments asked voters either to reduce employee pension formulas or secure future voter approval for additional pension benefits...
LINK - NBCBayArea.com
March 15, 2012
Governor Signs Law To Enact Major Pension Reform
Governor Andrew M. Cuomo Friday, joined by Mayor Bloomberg and elected officials from across New York State, signed into law sweeping pension reform legislation that will save state and local governments, including New York City, more than $80 billion over the next 30 years.
"For years rising pension costs have spelled disaster for local governments across the state. That finally changed this week, as we came together to put in place a bold pension reform plan that will save taxpayers more than $80 billion over the next three decades," Governor Cuomo said. "By putting the interests of the people of New York State first, we overcame the obstacles that for so long have stood in the way of real reform and delivered one of the most critical, widespread fiscal reforms the state has seen in years. I thank Majority Leader Skelos, Speaker Silver, members of the legislature, elected officials across the state, and particularly Mayor Bloomberg for all the hard work that went into putting in place this important new pension reform..."
LINK - WKBW.com
March 12, 2012
Cuomo, lawmakers at odds over budget and pension reform
Gov. Andrew Cuomo and state lawmakers were at odds Monday over major portions of the state budget as they seek to pass an on-time spending plan for the second year in a row.
The Democratic-led Assembly and the Republican-controlled Senate offered their own budget resolutions on Monday, proposing significant changes to the plan introduced by Cuomo on Jan. 17.
In particular, lawmakers left out Cuomo's plan to adopt a less generous retirement benefits for new state workers. Cuomo warned he might force legislators to either approve his plans or risk a government shutdown if a deal isn't reached by April 1, which is the start of the 2012-13 fiscal year...
LINK - PressConnects.com
March 8, 2012
Lawmakers prepare to do battle over pension reform
The state's retirement costs are going through the roof, according to state officials. But the solution Governor Bobby Jindal is proposing has area lawmakers preparing for a big battle in the legislative session beginning on Monday.
Money is once again the big challenge for the session as the state faces a nearly billion dollar revenue shortfall.
"The legislative auditor told me one time at a meeting that we don't have enough money in our current retirement to pay the current retirees, now that's not accounting for anyone that is coming to retire over the next 10 years, 5 years, over the next 20 years," said State Representative Kevin Pearson, R-Slidell...
LINK - Fox8Live.com
March 7, 2012
Pension Reform measures across the US
Pension reform is a hot topic both here in NH and across the country. Here are some of the reform measures currently underway in other states:
California: Originally there were two plans under consideration that would be put before the voters through referenda. One would put all new employees into a 401(k) style plan, which is currently under consideration here in New Hampshire. The other would be a hybrid plan, similar to what is now in place in Utah and is backed by Gov. Jerry Brown. Brown’s plan includes a rider that would increase taxes.
The organization behind the push for the 401(k) plan suspended its campaign after reviewing the summary language that was to be included on the ballot. They charge that the Attorney General for California, who writes the summaries that appear on the ballot, of deliberately casting it in a negative light as a political move to help Gov. Brown’s plan pass. The Republican members of the California House have introduced Gov. Brown’s plan, minus the tax hikes, as legislation...
LINK - NewHampshire.Watchdog.org
February 24, 2012
Pension fight to dominate N.Y. budget talks; Cuomo pushes reform to cut costs
Pension benefits for new government workers in New York are shaping up to be a key battle as lawmakers and Gov. Andrew Cuomo head into the final month of budget negotiations.
With the Legislature on mid-winter break until Wednesday, Cuomo ramped up his vow to enact a new pension tier that would provide less generous benefits to new employees. He said this week that he would insist pension reform be part of the state budget for the 2012-13 fiscal year, starting April 1.
Cuomo said his effort to curb burgeoning pension costs for state and local governments pits him against special interests...
LINK - LoHud.com
February 22, 2012
City workers oppose San Jose’s pension reform plans
Tom Saggau doesn’t want to see the number of San Jose public servants decrease as a side effect of poor negotiating.
Pension reform is a large concern in San Jose, as it is in many cities across America. A report released by Joe Nation and the Stanford Institute for Economic Policy Research this December reveals a dangerous risk for the city. It says San Jose may not be able to fulfill its public employees’ pension benefits when they retire. The institute wants to inform economic policy in the United States and other countries via research and analysis. The report states that San Jose, over the next 16 years, has only an 18 percent chance of covering the deficit that underfunded public pensions created.
Saggau doubts the report’s validity....
LINK - PeninsulaPress.com
February 22, 2012
Cuomo draws line over his NY pension reform plan
Gov. Andrew Cuomo told the Legislature on Wednesday that he's willing to risk a shut-down of government to create a cheaper pension system for the next generations of public workers.
"It is one of the seminal clashes of this budget and of my administration," Cuomo told reporters. "The question is, does this body, does this government, does this Legislature perpetuate a pension system that is on the verge of bankrupting the state ... or does the Legislature respond to the needs of the people?..."
LINK - WSJ.com
February 22, 2012
Republicans challenge Democrats on pension reform
Republican lawmakers on Wednesday challenged Gov. Jerry Brown to get Democratic support for the pension reforms he introduced four months ago.
GOP leaders in the Senate and Assembly announced a package of bills identical to the Democratic governor's proposal, which seeks to bring public-sector retirement benefits more in line with those at private employers.
"We believe it's a good start," said Senate Minority Leader Bob Huff, R-Diamond Bar. "It's certainly rare that you see us agreeing with the Democrat governor. ... But today we stand here with the governor to get this pension reform..."
LINK - MercuryNews.com
February 21, 2012
Riverside County attorneys cut deal to avoid reducing pensions
Despite Riverside County's pension reforms, about 380 attorneys have figured out a way to preserve an extra bump in pension benefits that has been, but is no longer, available to about 5,000 county employees.
Until recently, retiring attorneys, law enforcement officers, department heads, managers, county supervisors and others have drawn pensions nearly matching their pay ---- if they put in a full 30 years with the county.
For starters, working three decades entitled them to 90 percent of their highest single-year salary...
LINK - NCTimes.com
February 21, 2012
California city and county pensions in trouble, report says
Many of California's biggest local governments spend an average of 10 cents of every dollar covering pension costs, according to a study of the largest independent pension plans released Tuesday.
The study, by Stanford professor and former Assemblyman Joe Nation and a junior at the school who is a member of a nonprofit that studies California governance, examines plans for cities and counties that do not rely on the state's largest public pension group, CalPERS. They include the city and county of Los Angeles, the cities of Fresno, San Jose, San Francisco and San Diego, and other jurisdictions. The pension plan unveiled by Gov. Jerry Brown last year is intended to change these plans, as well as thousands of other local ones run by CalPERS...
LINK - LATimes.com
February 8, 2012
Pension-reform group suspends initiative campaign
A conservative group announced Wednesday that it was suspending its campaign to put public employee pension reform on the November ballot.
Dan Pellissier, president of California Pension Reform, said his group could not raise enough money to mount a petition-signature drive. A successful drive typically requires at least $2 million.
He blamed unfavorable language issued by the office of Attorney General Kamala Harris, a Democrat, which he said undermined the effort even though pension reform is popular with Californians...
LINK - MercuryNews.com
February 2, 2012
Jerry Brown delivers pension reform language to legislators
Gov. Jerry Brown has sent language for his 12-point pension reform plan to the Legislature's Conference Committee on Public Employee Pensions.
The proposals are divided into two groups. The constitutional amendment Brown offered broadly outlines the pension changes more narrowly defined in the language to change state law. The governor's plan won't go forward without two-thirds of the Legislature voting to put the constitutional changes on the Nov. 6 ballot, which would then need voter approval from a majority....
LINK - SacBee.com
January 27, 2012
Darrell Steinberg: Pension reform must pass ‘strength test’
Senate President Pro Tem Darrell Steinberg said today that the Legislature will consider some sort of pension reform bill this session, and he didn't rule out sending a hybrid plan for new hires to Gov. Jerry Brown for a signature.
The Sacramento Democrat talked at length about pensions during a morning meeting with the Capitol press corps on Thursday. The Bee's Torey Van Oot was there and passed this six-minute audio file from the event.
(Warning: To hear the file, you'll need software that plays m4a files, such as RealPlayer or QuickTime. The recording is clear but low-volume, so turn up the sound on your listening device.)...
LINK - SacBee.com
January 25, 2012
Lawmakers urge Brown to provide details on pension proposals
Members of a conference committee charged with crafting comprehensive pension-reform legislation this year urged Gov. Jerry Brown on Wednesday to quickly provide full details on how he envisions his proposed reforms would work.
"The public is starting to question if this committee is going to accomplish anything," said Sen. Mimi Walters, R-Laguna Niguel. "We need to prove to the public that we are very, very serious about moving forward with pension reform."
She urged the Brown administration to quickly provide the committee with proposed legislative language that would detail his proposals on reform for public employee pensions...
LINK - VCStar.com
January 25, 2012
Gov. Jindal reveals Pension Reform Plan
Governor Jindal unveiled a dramatic redesign of the state employee retirement plan. The Governor, in three parts, tries to help the state dig itself out of an $18 billion hole. No all state workers are on board.
"Louisiana taxpayers are spending nearly $2 billion just this year in state retirement," said Jindal.
He called the state's current retirement system irresponsible, pointing to out of control costs that are impacting what he calls critical investments in priority areas; like classrooms and healthcare...
LINK - WAFB.com
January 25, 2012
Editorial: Lawmakers spin their wheels on pension reform
A joint Senate/Assembly conference committee will hold its third (ho-hum) informational hearing today on the 12-point pension reform plan that Gov. Jerry Brown unveiled with such fanfare last October. Don't expect anything to come of it. So far, a lot of talk has emerged but no pension bill. Efforts to substantially reduce state pension obligations are a sham in this Legislature, and most people who work in the Capitol know that.
A conference committee was formed to produce a reform package, but after three months, no author has emerged willing to champion the governor's proposal and no language has been drafted that would give substance to the modest plan Brown outlined...
LINK - SacBee.com
January 24, 2012
More work to do on pension reform in New Jersey
In talking to state legislators, there appears to be a willingness to address a fresh concern with the New Jersey public pension system.
News reporter Lauren Taniguchi has written stories the last two Sundays about public employees retiring, collecting pensions and then getting new public jobs. Labeled “double-dipping” by critics, the practice amounts to two hefty public paychecks for many of these individuals.
It’s a practice our state cannot afford and one that should be ended....
LINK - NJ.com
January 24, 2012
San Bernardino County pension reform measure moves forward
The president of San Bernardino County's most powerful labor union announced Tuesday it is bankrolling an initiative to reduce county supervisors' jobs to part-time status.
The announcement by Laren Leichliter, president of the San Bernardino County Safety Employees Benefit Association, or SEBA, came hours after he appeared before the Board of Supervisors to protest pension reforms proposed by Supervisors Janice Rutherford and Gary Ovitt.
On a narrow vote, the board authorized county counsel to draft a ballot measure requiring any proposed pension increases for county employees be put to a vote by taxpayers....
LINK - ContraCostaTimes.com
January 23, 2012
The pension clock is ticking
It's the norm in January: After the governor proposes a new budget and delivers his State of the State address, legislators slide into hibernation until spring.
Oh, there's some rustling around in the dens — a few committee hearings, brief floor sessions — but no strenuous activity, no risk taking until May, when deadlines sprout and the governor revises his budget proposal.
Not every year follows that pattern — last March, the governor and the Legislature made sharp spending cuts — but winter 2012 has all the signs of the rhythmic long nap...
LINK - LATimes.com
January 23, 2012
Reform Washington state’s pension system to help state close its budget gap
Washington state must reform its overly generous pension system. The Seattle Times editorial board favors pension reform of the type proposed by state Sen. Joseph Zarelli.
IN the work to balance the state budget, short-term gains are nice, but the long term is critical. One of the most fruitful areas for saving money long term is public-employee pensions. This cannot mean taking away a benefit already promised, which is illegal. Surely it will mean changing what is promised to new employees.
An example is Senate Bill 6378, sponsored by Sen. Joseph Zarelli, R-Ridgefield. Under the bill, new state employees would no longer get a full pension at 62 after 30 years service or an 80 percent pension at age 55 — a benefit light-years away from what most private-sector workers have...
LINK - SeattleTimes.NWSource.com
January 20, 2012
S.B. COUNTY: Pension reform voter measure proposed
Future retirement benefit increases for San Bernardino County employees could be decided by voters under a proposal that will go before the Board of Supervisors on Tuesday.
Supervisors Janice Rutherford and Gary Ovitt are proposing that the county place a ballot measure before voters in the June election to amend the county charter. If it passes, county voters’ approval would be required before retirement benefits for county employees, legislative officers and elected officials could be increased.
Rutherford described the proposal as “insurance” for taxpayers...
LINK - PE.com
January 19, 2012
Oklahoma House leaders to unveil new plans for overhauling pensions, government modernization
House Speaker Kris Steele and members of the House's Republican majority will unveil new proposals for modernizing state government and propping up the state's underfunded pension systems.
Steele and other GOP leaders plan a news conference Thursday to discuss the proposals. The Shawnee Republican has made government modernization and pension reform among his top priorities for the 2012 Legislature that convenes on Feb. 6...
LINK - TheRepublic.com
January 19, 2012
NY Governor Takes on Union Pension Reform
Another go showing the unions no love. This time, it is not Republican Chris Christie in New Jersey. This time it's democrat Andrew Cuomo next door in New York.
Cuomo clamping down, pushing union members to pony up, and now unions are fed up and now fighting back. Tonight a democrat base getting in his face.
The Keystone cop out. Republicans lashing out at the president's decision to knock out a job creating pipeline. Then if image is everything then this image tell you every thing you need to know about Carnival Cruise Lines futures. The picture that could sink an entire company...
LINK - FoxBusiness.com
January 18, 2012
Arizona may undo fix to pension system
Key state lawmakers want to rescind last year's hike in the contribution that more than 200,000 Arizona State Retirement System members make toward their pensions, citing fears of losing a lawsuit over the issue.
House Bill 2264 would return to the previous funding system, under which contributions to the ASRS for public-employee retirements were split 50-50 between employees and their employer...
LINK - AZCentral.com
January 17, 2012
Cuomo Likely To Push Pension Reform, Overall Budget Reduction
In addition to highlighting Gov. Cuomo’s possible plans to link school funding to a teacher evaluation system, my story and the accompanying graphic today also hit on other parts of tomorrow’s budget announcement.
Cuomo’s budget is expected to reduce overall spending for the second year in a row, hike state taxpayer supported funding by just under 2%, close a $2 billion budget deficit and--and possibly include his new plan for pension reform.
Like the teacher evaluation system he is expected to include, the pension reform plan will likely raise the ire of the public worker unions...
LINK - NYDailyNews.com
January 17, 2012
NM Legislature: Pension Reform
The Educational Retirement Board or ERB is proposing changes to the pension system for school district and University employees. The changes include a minimum retirement age of 55 and limits on cost of living increases.
We asked Senator Steve Fischmann about the issue on KRWG-TV's Your Legislators. He says changes must be considered to prevent the pension system from becoming insolvent...
LINK - PublicBroadcasting.net
January 16, 2012
California: Pension Reform & “Vulture Capitalists”
If the squealing by the forces behind attempts to blow up the state's public pension are any indication, the truth must really hurt.
In the last few days, both the nonpartisan Legislative Analyst's Office and Attorney General issued their judgment on pension reform proposals being proposed by former Schwarzenegger aide Dan Pellissier. And it wasn't pretty.
The LAO noted that the proposals would cost governments more than $1 billion per year for up to 30 years...
LINK - CapitolWeekly.net
January 11, 2012
Public Employee Pension Reduction Initiative - Gathering signatures now
Reduces pension benefits for current and future public employees, including teachers, nurses, and peace officers, but excluding judges. Eliminates constitutional protections for current and future public employees' vested pension benefits. Creates hybrid pension plan for new employees, capping collective benefits at 75 percent of salary. Limits cost-of-living adjustments for retired and current employees. Prohibits public retirement systems from providing death or disability benefits to future employees. Requires that current employees add up to three percent of their salary to their pension contribution annually, when pension plan is underfunded. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government...
LINK - SOS.ca.gov
January 11, 2012
Governor vows to take on pension reform to boost credit rating
Gov. Pat Quinn on Tuesday sought to ease concerns about a recent downgrade in the state's bond rating that cemented Illinois as the state with the nation's worst credit rating, saying he will push for major pension reforms this year to try to reverse it.
Quinn's comments came just days after Moody's Investors Service downgraded the state's rating from A1 to A2. The change "follows a legislative session in which the state took no steps to implement lasting solutions to its severe pension underfunding or to its chronic bill payment delays," Moody's said in its report.
The Democratic governor noted that Standard & Poor's and Fitch Ratings did not lower their ratings of the state's debt — they rank California as worst in the nation, with Illinois one notch above — but Quinn acknowledged the state's ranking should be improving after last year's income tax increase, not getting downgraded...
LINK - ChicagoTribune.com
January 10, 2012
Backers of Calif. public pension overhaul lag in fundraising effort
The effort to place a public pension overhaul before California voters this November has moved into a new and challenging phase.
Backers have reported contributions from but a handful of donors, and on Tuesday bashed Attorney General Kamala Harris for what they said was a "grossly misleading" official description of their measures.
The Sacramento-based California Pension Reform reported raising $128,600 late last month, mostly from Silicon Valley venture capitalists...
LINK - SacBee.com
January 10, 2012
Illinois Gov. Quinn urges pension fix; he’s ‘willing to lead the expedition’ this year
Illinois Gov. Pat Quinn pledged Tuesday to reform the public employee pension system "once and for all" this spring.
The Democratic governor said he's willing to take on the ailing program in a year when every seat in the Legislature is up for election because the state's contribution to five retirement plans is eating up more and more of the state budget.
The system is short about $85 billion what it will eventually need to cover all its liabilities. But repair could mean reducing benefits for state employees, something that's highly unpopular with powerful unions who contribute money to political campaigns...
LINK - ChicagoTribune.com
January 6, 2012
Illinois pension reform signed into law
Public employees can no longer rely on some loopholes to inflate their state benefits, including one that allowed two union officials to qualify for teachers’ retirement perks after a single day in the classroom, under a law signed Thursday.
The law, which takes effect immediately, also aims to end the practice of double dipping. In some cases —notably in the Chicago area — employees took leaves of absence from city jobs, took full-time union jobs, then collected pensions from both.
The legislation also says current union leaders can’t base public pensions on union pay checks; now their pay will be based on their salaries when they leave their government jobs...
LINK - SJ-R.com
January 5, 2012
Pension reform debate is about to heat up
The next few weeks will draw the lines more sharply in the 2012 debate over public employee pensions. A road map:
On Monday, the attorney general's office expects to issue the titles and descriptive summaries for two potential November ballot initiatives that aim to cut government pension costs.
One of the measures backed by California Pension Reform would put newly hired state and local government workers into "defined contribution" plans similar to a 401(k) account...
LINK - SacBee.com
January 4, 2012
The GOP’s California Pension “Reform” Plan Continues to Get Bad Reviews
With the Attorney General expected to release its Title and Summary for the pair of GOP pension-gutting measures any day now, we can only hope she comes to the same conclusion the Legislative Analyst did when it put its lump of coal into the stockings of the millionaires behind the proposals: The revelation that their sloppily-drawn "reform" plans in fact will cost state and local governments billions MORE in pension costs.
The LAO pegs the taxpayer cost of the pair pension-stealing ballot measures at no less than $1 billion dollars every single year for the next three decades. The Orange County Register warns that taxpayers aren't likely to see any savings until they are "grizzled and gray." And although the LAO sees "potential" savings in the distant future, “pension reform could actually cost governments, and the taxpayers who fund them, more,” says the Register...
LINK - CAMajorityReport.com
January 4, 2012
Cuomo Proposes Pension, Mandate, Education Reform
Before 2,000 onlookers, New York Gov. Andrew Cuomo outlined economic growth measures, pension reform, mandate relief, and public education reform this afternoon, in his second State of the State Address.
He also announced plans to lay out a blueprint for economic development. Cuomo’s job creation measures were described as “$25 billion in state, federal and private economic activity,” through private-public partnerships. He described plans to rebuild the Tappan Zee Bridge, and the Jacob Javits Convention Center on Manhattan’s west side, and proposed an energy superhighway, among other proposals.
Meanwhile, Cuomo proposed amending the state’s constitution to further regulate and allow casino gaming...
LINK - TheDailyHarrison.com
January 4, 2012
Lawmakers face budget strife, election challenges
The state Legislature reconvened Wednesday for a year of diminished expectations set against a background of intense partisanship and election-year politics.
Lawmakers face a $13 billion budget deficit and several hot topics that include pension reform, high-speed rail and whether to keep an $11 billion water bond on the November ballot.
Gov. Jerry Brown and his fellow Democrats, who control both houses of the Legislature, already have said they do not plan to engage with Republicans in budget discussions after last year's failure to reach a compromise. Instead, they'll go to the ballot and ask voters to increase taxes on the wealthy and boost the state sales tax...
LINK - MercuryNews.com
January 3, 2012
Pension reform: Cheaper to do nothing?
Pushing public workers out of pension plans with guaranteed payouts could save taxpayers billions each year — but perhaps not until the folks reading this story are grizzled and gray, according to new analyses by the nonpartisan Legislative Analyst’s Office.
In the short-term, the LAO said, pension reform could actually cost governments, and the taxpayers who fund them, more.
We’ve been telling you about the two versions of an aggressive initiative filed by California Pension Reform (whose VP is Fullerton’s own Jack Dean), which are in the signature-gathering stage and aiming for the November ballot...
LINK - OCRegister.com
December 29, 2011
Debt-ridden Stockton a battleground for police union, City Hall
The first eyebrow-raising salvo in the fight between the cops and this city was the billboards.
"Welcome to the 2nd most dangerous city in California: Stop laying off cops!" read one at the city's entrance. Other billboards posted by the Stockton Police Officers' Assn. depicted splattered blood, gave a running tally of the city's record number of homicides — and the city manager's phone number.
Since then, the fight moved closer to home: The police union bought the house next to City Manager Bob Deis...
LINK - LATimes.com
December 28, 2011
LAO: Ballot proposals to cut California government pension costs may wind up increasing them
Two ballot proposals aimed at cutting government pension costs could wind up increasing them, are fraught with legal and fiscal uncertainty and would put pressure on governments to increase public employee pay, according to new analyses of the measures.
The nonpartisan Legislative Analyst's Office on Tuesday released its takes on two public pension reform plans filed by Dan Pellissier, president of California Pension Reform. The group hopes to put one of the proposals to a statewide vote next November...
LINK - SacBee.com
December 27, 2011
Legislative Analyst releases review of California pension plans
Two public pension reform plans aimed for the November 2012 ballot wouldn't make much of a dent in government costs for decades, and the savings to employers' retirement expenses would be "offset to some extent by increases in other employee compensation costs," according to the nonpartisan Legislative Analyst's Office.
The analyses share much of the same language and conclusions. Click here for the LAO's review of the defined contribution plan backed by California Pension Reform. This link opens the review of CPR's alternative hybrid pension proposal that mirrors a plan backed by Gov. Jerry Brown....
LINK - SacBee.com
* Links above open in a new window.
December 27, 2011
Double dipping retirees eyed by Brown
Gov. Jerry Brown's plan for sweeping public pension reform would hit the pocketbooks of employees who hope to collect a pension check and paycheck at the same time.
It's a common practice statewide -- especially in law enforcement -- and the central San Joaquin Valley is no exception.
Visalia Police Chief Colleen Mestas, for example, gets an annual pension of about $55,000 based on her 20 years with the Fresno County Sheriff's Department and also collects $140,000 a year, including benefits, from her current job...
LINK - FresnoBee.com
December 25, 2011
Editorial: Pension numbers need to be nailed
When California State Treasurer Bill Lockyer dropped by The Sacramento Bee Editorial Board last week to talk about public employee pensions, he said he didn't have "settled, crisp views" on pension reform. That statement surprised everyone in the room.
After all, Lockyer is one of the state's chief financial officers, a man who's been sitting on the boards of the state's two biggest public pension funds, the California Public Employees' Retirement System and the State Teachers' Retirement System, for five years now...
LINK - SacBee.com
December 24, 2011
Opinion: Pension reform hindered by limits of contract protections
When it comes to public-employee pensions in California, what goes up usually can't come down.
At least that's the prevailing legal theory, severely restricting reform options across the state. As the state pension squeeze intensifies, we soon could see those limits tested.
Pensions typically are based on the number of years an employee works. Each additional year adds to future retirement payments. Starting in 1999, most public agencies in California increased that annual accrual rate...
LINK - MercuryNews.com
December 22, 2011
Press Release from the Tennessee State Senate Republican Caucus, Dec. 22, 2011
State Senator Brian Kelsey (R-Germantown) announced today he has introduced legislation that would reform the way pensions are calculated for new state employees. The plan would be offered for new state employees but not for local government employees or for education workers. Kelsey said the proposal would establish a privately managed cash-balance plan to eventually replace the Tennessee Consolidated Retirement System defined benefits plan, participation in which would continue to remain available for current employees.
The legislation is the tenth in a series of announcements by Kelsey in his “12 for ’12” initiative for the next legislative session, which is set to reconvene January 10, 2012...
LINK - TNReport.com
December 18, 2011
Public pensions in free fall
As the bill to reform Ohio’s five public pension plans crawls through the General Assembly, the need to deal with the unfunded liabilities only gets more urgent.
A study issued this month by The Buckeye Institute for Public Policy Solutions entitled “Hanging By A Thread” places the total unfunded government pension liabilities at $66 billion.
But Ohio isn’t alone in being threatened by this epidemic. An Associated Press survey conducted earlier this year found the 50 states have a combined $690 billion in unfunded liabilities and $418 billion in retiree health-care obligations...
LINK - Vindy.com
December 18, 2011
Pension Reform Updates: Panel Discussion Webinar
This session will provide you an update on the latest changes to California's pension laws, including the rules for hiring annuitants and new PERS regulations defining compensation. This session will discuss available strategies, and pitfalls to avoid, in reducing liability for pension benefits.
Issues that will be addressed include implementing pension tiers, sharing pension costs with employees, eliminating "spiking" and discontinuing accrued leave payouts that are considered compensation for retirement...
LINK - CSDA.net
December 18, 2011
Split (San Jose) council votes to place pension reform on ballot
Over the loud objections of city workers and retirees, the San Jose City Council voted 6-5 Tuesday to approve language for a pension reform measure that could go before voters in June.
The vote was a key political victory for Mayor Chuck Reed, who since last May has been trying to sell the council on a measure that overhauls pensions to prevent the layoffs of more cops and a severe reduction in city services.
"We need to move ahead," Reed said during a spirited three-hour debate that drew an overflow crowd of mostly city workers and retirees...
LINK - MercuryNews.com
December 16, 2011
Voters side with Jerry Brown on pensions
Jerry Brown made a rare gubernatorial appearance this month before a joint legislative committee that was delving — with obvious reluctance — into whether California’s public employee pension benefits should be overhauled.
While seeking his second stint as governor last year, Brown had pledged pension reform and has since offered a 12-point overhaul that attempts to strike a middle ground between the defenders of the status quo and the radical changes outside groups want...
LINK - DailyRepublic.com
December 15, 2011
CalPERS Calls Critical Stanford Pension Study an Exaggeration
A Stanford University-based economic think tank has asserted that California's public employee pension plans are skyrocketing, yet the nation's largest pension fund claims the study exaggerates.
"The study is written from a perspective that is intended to exaggerate perceived costs and the instability of pension systems,” said Ann Boynton, Deputy Executive Officer of CalPERS Benefit Programs Policy and Planning, in a statement released on the fund's website. “The report’s findings were based on low discount rates to artificially magnify unfunded liabilities. It is important to remember that CalPERS invests in a highly diversified portfolio that includes stocks, real estate, and other assets that have historically earned significantly higher returns than the rates assumed in the study.”
The Stanford Institute for Economic Policy Research claimed that the shortfall in California's plans is too large to be solved only by cutting future payouts, noting that the state's plans face long-term shortfalls as high as $500 billion -- a number that continues to grow rapidly. According to economist and former state Assemblyman Joe Nation, the report's author, the shortfalls cost the state $3.4 million for each day that lawmakers fail to change the pension benefits and contribution levels for public employees...
LINK - AI-CIO.com
December 13, 2011
Our View: Don’t flip-flop on pension reform
When it comes to state pensions and Springfield, nothing really is a surprise anymore.
Lawmakers talk big about fixing the system and reforming an unsustainable model. But they do little about it. And they do even less to address the $85 billion hole the state is in for underfunding the pensions systems in years past.
Now, it appears, that even when lawmakers do enact some sort of pension reform, they want to take it back – particularly some House Democrats...
LINK - Daily-Chronicle.com
December 13, 2011
Older employees hesitant about VA pension reform
Geoff Borah isn't looking to get rich from his state pension.
He's just looking for stability and, like many older workers, he is keeping an eagle-eye on the retirement debate coming up in Richmond.
He joined the Alexandria Redevelopment and Housing Authority, or ARHA, a public agency that works on affordable housing, as a carpenter in September 2008...
LINK - Virginia.StatehouseNewsOnline.com
December 12, 2011
Cities want to rollback pension standard OK’d under Jeb Bush
Florida cities said Monday that they are poised to make another attempt at revamping costly pension requirements that emerged under former Republican Gov. Jeb Bush.
The current Republican-led Legislature may be wary of antagonizing police and firefighter unions, a frequent election-year ally. But Florida League of Cities officials said they hope a pocketbook appeal might drive changes when lawmakers reconvene in January...
LINK - PostonPolitics.com
December 12, 2011
SC legislators give initial OK to pension reform
A legislative panel has initially approved a plan to fix South Carolina's pension system.
A House subcommittee unanimously approved the rough draft Monday. It includes increasing the number of years public employees must work to draw full retirement from 28 years to 30. Employees currently within five years of retirement would be exempt from the longer requirement...
LINK - DailyComet.com
December 12, 2011
SC legislators give initial OK to pension reform
A legislative panel has initially approved a plan to fix South Carolina's pension system.
A House subcommittee unanimously approved the rough draft Monday. It includes increasing the number of years public employees must work to draw full retirement from 28 years to 30.
The proposal would also tie retirement to age. Workers could not draw full retirement until age 62. A reduced benefit would be an option at 60...
LINK - WISTV.com
December 9, 2011
San Jose attorney calls pension reform unconstitutional
In a strongly-worded letter dated June 21, 2011 to Mayor Reed and the City Council, local retired San Jose city attorney Joan Gallo expressed bewilderment at why the City of San Jose would undertake an action which clearly violates the contract clause of the California and United States Constitutions.
Citing key California Supreme Court cases, Gallo writes the court has held that pension rights are an integral portion of compensation which cannot be changed once they have vested and with respect to active employees, some limited modification of vested pension rights has been allowed by the resulting disadvantage to employees must be accompanied by comparable new advantages...
LINK - Examiner.com
December 7, 2011
More Californians say public pensions too generous
About 41 percent of California voters think pension benefits received by public employees are too generous, with Republicans overwhelmingly viewing the retirement benefits as over-the-top, but independent and Democratic voters more supportive of the current system, according to a Field Poll released today.
The survey also found majority support for Gov. Jerry Brown's proposal to raise the retirement age for new government workers and set limits on public employee benefits.
The poll surveyed 1,000 registered voters last month and found that the number of Californians who view government employee pensions as too generous has grown over the past two years, from 32 percent in 2009 to the current 41 percent. However, the poll also found that a majority of both Democrats and independent voters view the current benefits as about right or not generous enough - and that 49 percent of all voters feel that way...
LINK - SFGate.com
December 7, 2011
California voters give edge to Jerry Brown’s public pension overhaul
A majority of California voters support Gov. Jerry Brown's plan to dial back public employee pensions and a plurality think that state and local government retirements are "too generous," according to a new Field Poll.
A little more than half – 51 percent – said that Brown's pension proposal "strikes about the right balance."
Poll director Mark DiCamillo said that finding shows that Brown, a union-backed Democrat who introduced a 12-point pension reform plan last month, has credibility with voters...
LINK - SacBee.com
December 7, 2011
San Jose City Council votes 6-5 to place pension reform on June ballot
Over the loud objections of city workers and retirees, the San Jose City Council voted 6-5 Tuesday to approve language for a pension reform measure that could go before voters in June.
The vote was a key political victory for Mayor Chuck Reed, who since last May has been trying to sell the council on a measure that overhauls pensions to prevent the layoffs of more cops and a severe reduction in city services.
"We need to move ahead," Reed said during a spirited three-hour debate that drew an overflow crowd of mostly city workers and retirees...
LINK - MercuryNews.com
December 7, 2011
Poll: Majority support Brown’s pension reform
A new Field Poll finds bipartisan support among California voters for Gov. Jerry Brown's pension proposal, with nearly two-thirds saying they support reduced retirement benefits for new and current public workers.
The poll released Wednesday shows about four in 10 registered voters believe public pensions are too generous...
LINK - MercuryNews.com
December 6, 2011
Rhode Island makes pension system cuts
With government pension costs going up and revenues still down, Rhode Island Gov. Lincoln Chafee signed a law on Nov. 18 that alters the public pension system and reduces the state’s liability.
“I take no joy in the pain this will cause for thousands of Rhode Islanders,” Chafee said in a statement. “But the most important objective was ensuring retirement security for those in the state system.”
The state has an unfunded liability of $7 billion, and pension costs are making it difficult for the state to invest in other public services, according to a state report. The Rhode Island Retirement Security Act of 2011 is expected to reduce that liability by more than $3 billion with an 80 percent funding level for all pension systems...
LINK - AmericanCityandCountry.com
December 5, 2011
Sac Bee Editorial: Legislators dither and pander on pensions
Gov. Jerry Brown showed up personally to pitch his 12-point pension plan before a joint Assembly- Senate Committee on Thursday.
The rare appearance underlines the importance of pension reform for this governor. Without it, Brown told legislators, "I don't think we will have the credibility to ask the people to do other things that are very much needed."
Chief among those "other things" is a tax increase he hopes to put before voters next year. Sadly, legislators seemed unimpressed...
LINK - SacBee.com
December 5, 2011
San Diego City Council To Take Up Pension Reform Issue
An initiative to reform the city's debt-ridden pension system, which has qualified for public vote, will be taken up by the City Council Monday.
The council is legally obligated to place the measure on an upcoming election ballot since it received enough petition signatures from residents. Supporters want it scheduled for the June 2012 primary and said on Friday they were worried opponents would try to delay it until November.
The measure calls for new city hires -- other than police officers -- to be given 401(k) plans instead of being enrolled in the employee pension system...
LINK - 10News.com
December 2, 2011
Gov. Brown urges quick work to get state pension reform proposal on 2012 ballot
Making a rare gubernatorial appearance before a legislative committee, Gov. Jerry Brown on Thursday urged a panel studying potential changes to public employee pensions to act quickly on reforms he has proposed in order "to win the confidence of the people."
Brown has asked lawmakers to place on a next year's ballot constitutional changes that would implement portions of his proposals, which include requiring public workers to pay half the cost of annual contributions to their pension plans, raising the retirement age to 67 for most workers and establishing a so-called "hybrid" system that would include both a scaled-down pension and a 401(k)-type retirement saving plan...
LINK - VCStar.com
December 1, 2011
Local state senator leading pension-reform committee
The Golden State's pension systems are fraught with areas of concern.
A report last year by the Stanford Institute for Economic Policy Research said retirement funds for 2.6 million California teachers, state workers and university employees have long-term unfunded obligations totaling as much as $500 billion.
At the center of the attempt to fix the state's pension system is an Inland Valley lawmaker who faces a difficult election bid next year...
LINK - DailyBulletin.com
December 1, 2011
Public Pension Reform: State Lawmakers Urged To Look At Hybrid Plans
At the annual fall forum of the National Conference of State Legislatures, pension reform advocates briefed the nation's state legislators on hybrid pension plans on Thursday, saying there is "nothing more dangerous" to state fiscal health on legislative agendas today.
Lawmakers must address the pension reform issue in the face of rising pension costs, declining pension reserve funds and the current state of the nation's financial markets, they argued.
"The unfunded (pension) liability is somewhere between $1.5 and $3 trillion," said former Pennsylvania Lt. Gov. Mark Singel (D) about the total liability among the 50 states...
LINK - HuffingtonPost.com
December 1, 2011
Gov. Jerry Brown defends pension changes against critics
Gov. Jerry Brown stepped up Thursday to defend his proposed overhaul of the state’s public pension systems against criticism from legal experts and unions, telling lawmakers it would save money without running afoul of legal restrictions that protect retirement benefits for current employees.
Brown appeared before a legislative committee that includes lawmakers skeptical of portions of his plan. Assemblyman Warren Furutani (D-Gardena), the committee’s co-chair, was among those who said the plan may be too far reaching, but the governor indicating that his proposal was not intended as an opening bargaining position to be scaled back...
LINK - LATimes.com
November 30, 2011
State panel may require more steps before impasse is declared
A state board’s interpretation of a new law could profoundly change future labor negotiations in the city of San Diego and other public agencies in California if it requires additional action before a city can impose contract terms on union workers.
The legislation, authored by state Assemblywoman Toni Atkins and signed by Gov. Jerry Brown in October, would require public agencies to create an advisory fact-finding panel if mediation over labor contracts fail. The goal is to provide better transparency and recommend a reasonable settlement for both sides...
LINK - SignonSanDiego.com
November 18, 2011
Rhode Island’s Landmark Pension Reform
Last night, by overwhelming margins, the Rhode Island legislature passed what may be the nation’s most comprehensive state public employee pension reform ever (see our analysis for an education perspective on the bill). While pension battles have been front-page news in states such as Wisconsin, this reform didn’t emerge from an anti-union crusade. Instead, as Ted Nesi, the WPRI reporter whose in-depth coverage became must-read in the state, explains, it was a tale of leaders finally confronting a fiscal nightmare:
…Put another way, lopsided majorities voted to cut retirees’ pension benefits in a union-dominated state where Democrats have controlled the legislature since the eve of World War II...
LINK - EducationNext.org
November 17, 2011
Massachusetts: Governor Patrick Signs Pension Reform Legislation; Saving MA $5 Billion
Governor Deval Patrick today signed comprehensive pension reform legislation, continuing the Patrick-Murray Administration’s efforts to end abuses and close loopholes to create a sustainable public pension system. The bill signed today, S. 2065, “An Act Providing For Pension Reform and Benefit Modernization”, builds on legislation signed during the Governor’s first term that eliminated the most egregious abuses in the public retirement system.
“We are committed to finding additional ways to eliminate costs in state government and end abuses within the system,” said Governor Patrick. “I’m proud to sign this third phase of comprehensive pension reform legislation that will improve the public’s trust in government and ensure the pension system’s economic sustainability for future generations...”
LINK - NewEnglandPost.com
