August 23, 2011
LAO analysis of pension related initiative
Pursuant to Elections Code Section 9005, we have reviewed the proposed constitutional initiative regarding changes to pension benefit retirement ages for certain public sector pension systems (A.G. File No. 11‑0022).
Background
California Has Both Statewide and Local Public Pension Plans. The two largest entities managing state or local pension systems in California are the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS). Combined, CalPERS and CalSTRS serve 3.1 million members (about 8 percent of California's population), including around 750,000 members and beneficiaries who currently receive benefit payments. Members of CalPERS include current and past employees of state government and the California State University (CSU), as well as judges and classified public school employees. In addition, hundreds of local governmental entities (including cities, counties, special districts, and county offices of education) choose to contract with CalPERS to provide pension benefits for their employees. Members of CalSTRS include current and past teachers and administrators of California's public school and community college districts. Members of CalPERS and CalSTRS receive differing levels of pension benefits. Many CalPERS members also participate in the federal Social Security program; in general, CalSTRS members do not...
LINK - LAO.ca.gov
