Pension Reform
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
Study finds $135.7B in local pension liabilities
Two dozen city and county governments in California face a combined $135.7 billion in unfunded pension liabilities, according to a study released Tuesday that also found the problem is growing.
The Stanford Institute for Economic Policy Research and a nonprofit group, California Common Sense, evaluated 24 local government pension systems that are not part of the California Public Employees' Retirement System, the state's main pension fund. The funds ranged from those for smaller entities, such as Santa Barbara and Stanislaus County, to the largest local governments in California, including Los Angeles, San Diego and San Francisco...
LINK - SacBee.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 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
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 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 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
Illinois Pension Reform Heads To Governor Quinn
Double-dipping into government pension systems is about to end in Illinois. Both Democrats and Republicans took a stand to close a loophole that allows union leaders to draw pensions from both labor and government pension systems. House Minority Leader Tom Cross says it was time to end the abusive practice. "We're talking in cases where there are individuals that are getting more than one pension, and it's hard to be sympathetic to a fellow who substitute teaches for a day and retires with a city pension and a union pension", said Cross...
LINK - WJBDRadio.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 30, 2011
Pension reform hearing and agenda
Jerry Brown's pension plan to get California lawmakers' scrutiny
California lawmakers will delve into Gov. Jerry Brown's 12-point pension plan on Thursday, the second legislative hearing by a two-house committee looking at the state's pension systems.
Brown's plan would generally propose less generous benefits for new hires and raise the retirement age.
The committee, which held its initial hearing Oct. 26 in Carson, is chaired by Assemblyman Warren Furutani, D-Gardena, and Sen. Gloria Negrete McLeod, D-Chino.
LINK - SacBee.com
November 29, 2011
Utah senator to present pension reform ideas to NH lawmakers
A special New Hampshire House committee looking into ways to overhaul the state's public pension system will hear from a Utah lawmaker about that state's efforts.
Utah Sen. Daniel Liljenquist will make a presentation Tuesday to the House Special Committee on Public Employee Pension Reform. He will discuss Utah's effort to transform its public pension system from a defined benefit model to a defined contribution plan...
LINK - TheRepublic.com
November 29, 2011
New Hampshire Senator: Pension reform to work
Too many people have taken advantage of the state retirement system, boosting their pensions to exceed their salaries, state Sen. Jeb Bradley said.
Prime sponsor of a bill that led to recent pension reform legislation, Bradley said "all the reforms taken together" will eliminate future cases of "high profile" pensioners and so-called double-dippers.
"It's not rampant and widespread," he said. "The double-dipping, which gets people rightfully so upset — someone who retires from a high-profile job and goes on to another high-profile job — I think it will curb the examples like that..."
LINK - SeacoastOnline.com
November 29, 2011
ASSEMBLYMEMBER KRISTIN OLSEN on Pension Reform
Recently, Governor Jerry Brown unveiled his state worker pension reform proposal to the public. He presented a plan that, at least on paper, is a good start, ending the worst abuses in the system and requiring future employees to more equitably share in the cost of retirement benefits.
It is a good sign that many of the ideas the Governor put forward are ideas that Republicans have pushed for years. Pension costs are consuming a larger chunk of the state budget each year, threatening classroom funding.
According to the bipartisan Little Hoover Commission, the 10 largest public pension funds in California – including CalPERS – faced a combined shortfall of more than $240 billion in 2010. Researchers at Stanford University have come up with an even more shocking number – they estimate unfunded pension obligations to be as high as $500 billion...
LINK - TurlockJournal.com
November 28, 2011
South Carolina moves on pension reforms for public workers
South Carolina is joining a group of states grappling with how to handle shortfalls in their state retirement systems. The state currently faces a $17 billion gap between investments and long-term pension promises. In addition to the gap, a proposed new rule would require local municipalities to disclose this shortfall on their balance sheets which may endanger some municipal credit ratings.
Two weeks ago, the House committee tasked with finding recommendations on how to bridge the investment gap canceled its plans to discuss the issue. Republican Rep. Jim Merrill of Daniel Island, the committee chairman said that officials were weeks away from having any kind of plan in place. In the interim the state has started looking for an investment professional to act as a consultant for the $26.2 billion pension fund. The state is expected to post RFP’s online for both this position and a global custodian for the fund within the next few weeks...
LINK - CIVSourceOnline.com
November 27, 2011
Cash-strapped cities want workers to contribute more to pensions
As Gov. Jerry Brown calls for sweeping reforms in public-employee pensions, cities such as Santa Ana demand concessions from their employee unions.
It's business as usual at Santa Ana City Hall as residents trickle up to the counter to pay business fees, pick up a dog license or, in a newer wing next door, apply for a free solar permit.
But on the top floor of the eight-story concrete fortress, city officials in Orange County's most labor-friendly city are doing the once unthinkable: demanding big benefit concessions from their employee unions...
LINK - LATimes.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
November 16, 2011
Labor coalition responds to California Pension Reform changes
Steve Maviglio, spokesman for Californians for Retirement Security, read this morning's report about tweaks to two pension reform ballot proposals and emailed a comment on behalf of the labor coalition:
"They can shop this measure to lawyers on the East Coast and try to get their funding from an Enron billionaire from Texas," Maviglio said in the email to The State Worker, "but at the end of the day, as the LAO has said, trying to slash the retirement benefits of California's public workers is unconstitutional, period."
What the Legislative Analyst's Office said was this...
LINK - SacBee.com
November 9, 2011
Pension reform measures watched across California
Resounding voter support this week for pension reform measures in San Francisco and Modesto offered some reassurance to leaders of other California cities also struggling to deal with ever-tightening budgets partly due to the costs of generous retirement plans for their employees.
More than two-thirds of San Francisco voters in Tuesday's election supported Proposition C, which would increase contributions by some city workers and raise the minimum retirement age for some others to save $1.3 billion over the next decade. San Francisco faces a $4 billion obligation over the next decade for tens of thousands of current and former employees under its system, which was created in better economic times...
LINK - MercuryNews.com
November 8, 2011
LAO report on Governor’s pension proposal
The Legislative Analyst's Office has just issued the following report:
Public Pension and Retiree Health Benefits: An Initial Response to the Governor's Proposal
The Governor’s 12-point pension and retiree health plan would result in bold changes for California’s public employee retirement programs. His proposals would shift more of the financial risk for pensions—now borne largely by public employers—to employees and retirees and would, in so doing, substantially ameliorate a key area of long-term financial risk for California governments.
As this report discusses, despite the proposal’s strengths, it leaves many questions unanswered, such as how his hybrid plan and retirement age proposals would work and how the state should cope with large unfunded liabilities already affecting the California State Teachers’ Retirement System, the University of California Retirement Plan, and the health benefit program for state and California State University retirees. The Governor’s proposal to increase many current public employees’ pension contributions also raises significant legal and practical issues.
This report (36 pp.) and a companion webcast (7:42) areavailable on the LAO’s website using the following link: http://lao.ca.gov/laoapp/PubDetails.aspx?id=2537
NOTE: You can also view the LAO Report below in .pdf document format via the CCPOA.org website for those who cannot access outside links.
November 3, 2011
Ballot proposals seek change in California’s pension system
State and local workers would pay more for their pensions under two ballot initiative proposals made public Wednesday.
The effort by a group calling itself California Pension Reform comes less than a week after Gov. Jerry Brown offered his own 12-point plan to dial back pension costs. Brown hopes to secure passage for his plan in the Legislature.
One of the two plans filed with the attorney general's office mirrors Brown's call for pensions to blend a smaller guaranteed pension with other retirement income sources...
LINK - SacBee.com
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
August 23, 2011
Taxing big pensions, eliminating collective bargaining initiatives collecting signatures
Taxing public pensions in excess of $100,000 a year could bring an extra $60 million into state coffers — – but would likely drive retirees from the Golden State, and would surely be challenged in court, says an analysis by the nonpartisan Legislative Analyst’s Office.
We told you recently that Lanny Ebenstein, a rather quixotic visiting economics professor at UC Santa Barbara, filed this and two other initiatives for the California ballot – including one that would strip public employees of the right to collective bargaining.
In a separate analysis of the ban-collective-bargaining measure, the LAO concluded that state and local agencies could indeed save money on employee compensation costs, “because the overall effect of this measure would be to strengthen state and local governments’ authority to set employee compensation at levels that are lower than that which an employee association would agree to...”
LINK - OCRegister.com
August 16, 2011
News interview on CCPOA contract, pension, benefits, etc.
The Maddy Report: Public Employee Unions / Public Safety Pensions
VIEW the VIDEO on YouTube.com (opens in a new window)
May 25, 2011
Neillo says he won’t pursue pension-reduction initiative
Former Assemblyman Roger Niello's initiative to rollback public pension benefits "will end up in the scrapheap of politically-motivated failures," said Dave Lowe, chairman of Californians for Retirement Security, in a statement released by the union coalition Tuesday evening.
As reported by Bee colleague Paresh Dave on Tuesday, Niello has decided he won't pursue collecting signatures to put his public pension rollback initiative on the ballot, although the secretary of state has said that he can begin working to place it before voters.
Niello, a Fair Oaks Republican who has said he's considering a run at statewide office, said with a special election on taxes later this year looking more and more remote, there's no urgency to make sure "pension reform" goes up for a vote...
LINK - SacBee.com - The State Worker
May 24, 2011
Pension reduction initiative authorized to collect signatures
Former Republican Assemblyman Roger Niello of Sacramento is clear for signature take-off on his controversial public employee pension reform initiative.
The Secretary of State officially announced today that he may begin collecting the required 807,615 signatures of California voters in order to qualify the measure for the statewide ballot.
The constitutional amendment strips public employee unions of their right to negotiate their pensions in collective bargaining, sets the retirement age at 62 and caps benefits at 60 percent of an employee’s highest average base wage over three years. It also requires that workers match the public contribution to their premiums...
LINK - IBABuzz.com
April 1, 2011
Jerry Brown issues pension reform plan
Gov. Jerry Brown today issued a 12-point pension reform agenda his office says he will introduce in the Legislature "with or without Republican support."
The first seven items seek to end abuses or tighten pension funding rules. The last five involve more systemic changes and are listed as "under development." We have a call in to the governor's office to find out what that means.
Brown released the details two days after talks broke down with Republican lawmakers over the state budget deficit. The GOP was seeking pension changes, among other things, in exchange for votes to place tax increase extensions before voters...
LINK - SacBee.com
October 29, 2010
A State Senate Race that Really, Really Matters
By Allysia Finley, Wall Street Journal's Political Diary
October 22, 2010
Memo from Chuck Alexander re: PML 2010-027 Furlough Program
Yesterday, the Department of Personnel Administration issued a new PMLto all Personnel Officers, which was forwarded to you by Perry Speth.
This PML states:
"Effective November 2, 2010 furloughs will be self directed. All State agencies and departments must ensure that employees take their three furlough days off within the pay period their total compensation is adjusted."
It is our belief that this is an attempt by DPAto convince the Appellate Court that all Unit 6 members are furloughed the same as those employees covered by the recent Supreme Court decision regarding furloughs. We are in the process of developing and submitting an information request seeking the CDCR plan that complies with this "new" furlough program...
October 21, 2010
Supervisory Update: October 21, 2010
Today at 3:30 p.m., Julie Chapman, DPA held a conference call with several bargaining units to clarify the Governor's Executive Order S-15-10. The main points remain consistent with the information we have already released for SO6 and MO6. Effective November 1, 2010, employee retirement contribution will increase from 8% to 11% minus $863 dollars. For current employees or those with prior state service returning to service, the retirement formula 3.0% @ 50 will remain the same. For "brand new employees to state service," the retirement formula will be the three-year highest average and the formula will revert to 2.5% @ 55. DPA is currently working with the state controller's office to establish new retirement codes.
Also effective November 1, furloughs end for SO6 & MO6. Employees will earn one PLP day per month which will be added at the beginning of the month to afford the employee the opportunity to use the PLP day the month it is actually earned. PLP days will have no cash value and must be used before termination of state service...
October 15, 2010
Supervisory Update: October 15, 2010
On Thursday October 7, 2010 the Governor issued Executive Order S-15-10 concerning non-represented and exempt employees, except for those in bargaining units 5 and 8. The language appeared to be very straightforward from the beginning. However, we wanted to ensure that this order did indeed cover S06 and MO6 employees...
October 15, 2010
Few Inland Republicans support pension bill
...In a floor speech late Thursday, state Sen. Bob Dutton accused the governor's office of trying to use the bill to punish the California Correctional Peace Officers Association, the largest union without a contract. Lawmakers ratify the pacts.
"What I'd really like to see is...the administration to go and deal with the CCPOA and actually bring a (contract) to the floor," said Dutton, R-Rancho Cucamonga, who became Senate GOP leader Monday. "Because this will end up being used, I feel, unfairly, against them as a bargaining tool." [...]
LINK - PE.com (The Press-Enterprise)
October 12, 2010
CCPOA Memo re: DPA, Furloughs and Pension Contribution Issues
To: State Board of Directors
From: Chuck Alexander, CCPOA Executive Vice President
Date: October 11, 2010
Re: DPA, Furloughs and Pension Contribution Issues
The latest information regarding the just-passed state budget for Unit 6 members is as follows.
The budget bill authorizes the governor to impose furloughs or institute other cost-saving measures on employees in five bargaining units including CCPOA. This authorization was approved in order to attain the $600 million in employee compensation reductions as required by the budget...
October 8, 2010
EC Budget Update
The California Legislature passed the State Budget early this morning. Members of the CCPOA Executive Council and the CCPOA Legislative Division held an all night vigil in the State Capitol during this process. We were successful in keeping the “pension reform” as written from achieving the required two-thirds votes for passage. However, in the early morning hours the Legislature gutted another bill, loaded the pension reform into that bill and passed it with a simple majority vote.
Considering the fiscal state of the state we made it quite clear, as we have all along, that we were more than willing to agree to pension reform and possible concessions in return for our work place rights (an MOU). The legislative leadership either would not or could not stand up to the Governor on behalf of the men and women in this profession...
October 6, 2010
Memo from Chuck Alexander to Legislators re: Pension Reform
The following is a copy of the letter sent from CCPOA Executive Vice President Chuck Alexander to the entire state Senate today concerning the tentative state budget proposals.
Please take a moment to read the letter. An identical letter was also sent to all members of the state Assembly.
Also, if you are interested, please contact the office of your state Assembly member and state senator to voice your opinion on this proposed budget plan.
You can find out who your legislators are by going to the CCPOA website and clicking on the link on the left-side of the page.
