Posted by Dan Mitchell, Nov. 5, 2009

Two versions of a ballot initiative limiting retiree benefits – pensions and health – for new public hires have been submitted that explicitly include UC. It allows the legislature to give some leeway to UC or other state employees. For local governments, leeway would have to be approved by voters:

 

http://ag.ca.gov/cms_attachments/initiatives/pdfs/i872_initiative_0…

 

http://ag.ca.gov/cms_attachments/initiatives/pdfs/i873_initiative_0…

 

The initiatives are the products of the California Foundation for Fiscal Responsibility. Officers and board include former Assemblyman Keith Richman and Orange County Supervisor John Moorlach. The organization’s website is at:

 

http://www.californiapensionreform.com/

 

The cost of hiring signature gathers for initiatives is typically $1 million -$2 million. TV ad campaigns to push initiatives once they get on the ballot cost substantially more. Whether this group has such funding is unknown.

 

What are the differences in the two initiatives?

 

Marcia Fritz, President of the California Foundation for Fiscal Responsibility, described the differences in the two initiatives in the The Fox & Hounds: Keeping Tabs on California Business and Politics. “Pension Reform Initiatives Would Save Billions” (Nov. 6, 2009).

She said that “The initiatives are identical except for the voter requirement that allows agencies to increase benefits for new workers.

The “10 Commandments” that form the basis of both versions of the initiative include:

•Honor all pension contracts

•Death and disability benefits shall not be changed

•Pension benefits must be fair and adequate

•Pension benefits must be guaranteed

•Pension spiking abuse must be discouraged

•Future generations should not pay retirement costs for today’s workers

•Retiree health funds must not be diverted to any other purpose

•Retirement benefit costs must be sustainable

•Local agency voters shall retain the right to change benefits

•Bankruptcies must be avoided

 

To read the whole article, go to    http://www.foxandhoundsdaily.com/blog/marcia-fritz/5730-pension-reform-initiatives-would-save-billions. For more information about the California Foundation for Fiscal Responsibility and the Public Employee Benefits Reform Initiative, go to CaliforniaPensionReform.com.