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  • 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

    PENSION REFORM PROPOSAL

    APPLIES TO STATE AND LOCAL GOVERNMENTS

    MARCH 2011

    1. Eliminate Purchase of Airtime. Would eliminate the opportunity, for all current and future employee members of all state and local retirement systems, to purchase additional retirement service credit. (RN 14777) (Note Walters, SB 522, would eliminate Air Time)

    2. Prohibit Pension Holidays. All California public agencies would be prohibited from suspending employer and/or employee contributions necessary to fund the normal cost of pension benefits. (RN 14777)

    3. Prohibit Employers from Making Employee Pension Contributions. All California public agencies would be prohibited from making employee contributions that fund the normal cost of employee retirement benefits in whole or in part. (RN 14777)

    4. Prohibit Retroactive Pension Increases. All California public agencies would be prohibited from granting any retroactive pension benefit increases, such as benefit formula improvements that credit prior service. (RN 14777)

    5. Prohibit Pension Spiking: Three Year Final Compensation. Final compensation for new employees would be defined as the highest average annual compensation during a consecutive 36 month period. (RN 14777)

    6. Prohibit Pension Spiking: Define Compensation as Only Regular, Non-recurring Pay. Compensation means normal rate of pay or base pay. (RN 14777) (Note Simitian, SB 27, would exclude from defined benefit changes in compensation principally for the purpose of enhancing benefits; would place stricter limits on creditable compensation)

    7. Felony Convictions. Prohibits payment of pension benefits to those who commits a felony related to their employment. (RN 14777) (• Note Strickland, SB 115, similar prohibition)


    PROPOSALS UNDER DEVELOPMENT

    Impose Pension Benefit Cap.

    Improve Retirement Board Governance

    Limit Post-Retirement Public Employment

    Hybrid Option

    Address CalSTRS Unfunded Liability


    Read more: http://blogs.sacbee.com/the_state_wo...#ixzz1IEwUEsbY
    Facts do not cease to exist because they are ignored. -- Aldous Huxley
    Two things are infinite: the universe and human stupidity. -- Albert Einstein

  • #2
    Limit Post-Retirement Public Employment is the only thing I have a problem with. If # two is implemented it would solve much of the problems my city has... of course you can kiss fancy things like new stadiums, convention centers, and city halls built on the underfunding of pensions good bye. Some times I like to think my pension is the third base at Petco park.

    Comment


    • #3
      He needs to wait a few years until the economy settles and see what happens. With his plan, it's going to **** everyone twice. The first time with these "reforms" that he is planning. The second time when the economy is good again and we try to get back to where we were before the "reform"; they will try and make us look like we are getting more, and the reality will be that we are just getting back what we had in the first place.
      Government is not the solution to our problem; government is the problem. - Ronald Reagan

      I don't think It'll happen in the US because we don't trust our government. We are a country of skeptics, raised by skeptics, founded by skeptics. - Amaroq

      Comment


      • #4
        4. Prohibit Retroactive Pension Increases. All California public agencies would be prohibited from granting any retroactive pension benefit increases, such as benefit formula improvements that credit prior service. (RN 14777)

        This is huge. It means that we only get [email protected] when it was established. he years prior willbe on the old formula. I knew this was a huge benefit whenthey did and i was sceptical then. This could cost many of a lot of $$.

        I know a lot of people think this stuff will be tiered but if you think about it, this section would not be relvent to new hires at all. It MUST be applied to all of us. That leaves the question as to whether it is constitutional or not. PERS will be fighting this section in court. I wonder if it will apply to the retirees? Ima gine someone who left with one year under [email protected] suddenyl getting every other year dropped back to [email protected]

        Anybody know what year the [email protected] went into effect?
        Originally posted by FJDave
        GM, you have just set the bar that much higher for the rest of us in our witty, sarcastic responses. I yield to you! Good job, kind Sir!

        District B13
        "We are not cops nor Feds." yet he still poses as an officer Hmmmm


        Grant us grace, fearlessly, to contend against evil and to make no peace with oppression.--WWII memorial

        "I have loved justice and hated iniquity, therefore I die in exile."

        Pope Gregory V II

        Comment


        • #5
          Thank God I work for an agency that is not part of PERS, and is almost fully funded. This PERS thing is a nightmare, and I really hope you all pull out of this OK....especially those that are close to retirement.
          sigpic
          Originally posted by Smurfette
          Lord have mercy. You're about as slick as the business side of duct tape.
          Originally posted by DAL
          You are without doubt a void surrounded by a sphincter muscle.

          Comment


          • #6
            Originally posted by Garbage Man View Post
            4. Prohibit Retroactive Pension Increases. All California public agencies would be prohibited from granting any retroactive pension benefit increases, such as benefit formula improvements that credit prior service. (RN 14777)

            This is huge. It means that we only get [email protected] when it was established. he years prior willbe on the old formula. I knew this was a huge benefit whenthey did and i was sceptical then. This could cost many of a lot of $$.

            I know a lot of people think this stuff will be tiered but if you think about it, this section would not be relvent to new hires at all. It MUST be applied to all of us. That leaves the question as to whether it is constitutional or not. PERS will be fighting this section in court. I wonder if it will apply to the retirees? Ima gine someone who left with one year under [email protected] suddenyl getting every other year dropped back to [email protected]

            Anybody know what year the [email protected] went into effect?
            I see no indication that this change would be retroactive. I think it is meant to prevent future increases. In other words, if an agency currently has 2% at 50, it would be unable to change the formula to 2.5% at 50 for those already in the system. They probably could count prior years at 2% and future years at 2.5%, however.

            To answer your question about timing of the change, it was around 2000 but varied by agency, and not all agencies changed the formula to 3% at 50. I think state agencies went first.
            Facts do not cease to exist because they are ignored. -- Aldous Huxley
            Two things are infinite: the universe and human stupidity. -- Albert Einstein

            Comment


            • #7
              Originally posted by DAL View Post
              I see no indication that this change would be retroactive. I think it is meant to prevent future increases. In other words, if an agency currently has 2% at 50, it would be unable to change the formula to 2.5% at 50 for those already in the system. They probably could count prior years at 2% and future years at 2.5%, however.

              To answer your question about timing of the change, it was around 2000 but varied by agency, and not all agencies changed the formula to 3% at 50. I think state agencies went first.
              I hope your right, but I dont see how that is going to save any money in the immediate which is the whole point of this.
              Originally posted by FJDave
              GM, you have just set the bar that much higher for the rest of us in our witty, sarcastic responses. I yield to you! Good job, kind Sir!

              District B13
              "We are not cops nor Feds." yet he still poses as an officer Hmmmm


              Grant us grace, fearlessly, to contend against evil and to make no peace with oppression.--WWII memorial

              "I have loved justice and hated iniquity, therefore I die in exile."

              Pope Gregory V II

              Comment


              • #8
                Originally posted by Garbage Man View Post
                I hope your right, but I dont see how that is going to save any money in the immediate which is the whole point of this.
                I think that the purpose of this is partly cosmetic, because the public is upset about abuses that were exposed primarily as a result of the Bell fiasco.

                However, Jerry also wants to show that he is serious about fixing long-term problems. These will help somewhat in that regard. The parts that have not been fleshed out could help even more.
                Facts do not cease to exist because they are ignored. -- Aldous Huxley
                Two things are infinite: the universe and human stupidity. -- Albert Einstein

                Comment

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