CalPERS

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Buried Lede on Retiree Health?

Byuclafaculty

From Wiktionary “bury the lede” (idiomatic, US, journalism) To begin a story with details of secondary importance to the reader while postponing more essential points or facts. http://en.wiktionary.org/wiki/bury_the_lede ==== An article in today’s calpensions.com indicates that both CalPERS and CalSTRS have asked GASB – the Governental Accounting Standards Board – for a delay in its proposed new rules on public pension accounting. The rule would allow public pensions such as UCRP to continue with their projections of earnings on their assets (7.5% for UCRP) but would require a much lower discount rate for unfunded liabilities. The net effect of the…

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Failed Fishing

Byuclafaculty

Faithful readers of this blog will know that in late July it contained a report of a pension initiative that might have had traction. The reason was that the initiative’s author had a track record in getting support for past propositions, including especially the recall of Governor Gray Davis. That said, the initiative itself was a confusing amalgam of various ideas including creating a pension for private sector employers and workers that would mirror CalPERS. The author appeared to be fishing for some financial angel to provide support, after which some new version of the initiative would have been submitted….

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LAO Writes Up Yet Another Ebenstein Pension Initiative

Byuclafaculty

Readers of this blog will know that Lanny Ebenstein – who has some affiliation with UC-Santa Barbara’s Econ Dept. – seems to like to file public pension initiatives. It only costs $200 and for that you get the Legislative Analyst’s Office (LAO) to give a summary and analysis as well as a title from the Attorney General. What a bargain! Ebenstein has been leaving UC’s pension system out of his initiatives. His efforts refer to CalPERS and CalSTRS. But the LAO’s write ups do serve a useful purpose in pointing to the legal issues that tinkering with pensions pose. They…

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Pension Tax?

Byuclafaculty

An initiative was submitted in July to the Attorney General proposing to tax public pensions above $100,000. It applies only to CalPERS and CalSTRS and not UC. As noted in this blog, anyone can submit and initiative (anyone with $200). But as a practical matter, you need $1-$2 million to pay signature gathering firms if you want to get it on the ballot. And, if the measure is controversial, you may need tens of millions for TV ads, etc., thereafter for a campaign. The submitter of this particular initiative is Lanny Ebenstein whose CV is at http://www.sbcta.org/lannyebenstein.html It seems unlikely…

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CalPERS May Contest San Jose’s Way With Pension

Byuclafaculty

As noted in prior posts, it seems clear that accumulated public pension rights of retirees and current workers cannot be voided or reduced. And it is also clear that new hires can be given lesser benefits than current workers or retirees. In the private sector, benefit formulas of current worker going forward can be made less generous. However, the degree to which that is possible in the public sector has been disputed. CalPERS takes the position that only new hires can have reduced benefits and formulas. But San Jose has a measure on the ballot that would change formulas for…

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CalPERS Issues Report on Vested Rights of California Pension Recipients and Covered Current mployees

Byuclafaculty

Although the CalPERS report refers to its participants, most of the legal discussion is generally applicable to any public pension plan in California. Basically, the report indicates that both earned benefits AND benefit formulas cannot be altered, except in extraordinary circumstances, in ways that disadvantage covered employee. The report is available below from Issu and/or Scribd: Open publication – Free publishing – More calpers Vested Rights of CalPERS Members Bottom Line: No, they can’t take that away…

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Average State Retirement Ages Including UC

Byuclafaculty

The Sacramento Bee today carries the table below on average retirement ages under various state pensions. UC faculty (not clear how that is defined; probably a lot more than ladder Senate faculty) have the oldest age. Source http://www.sacbee.com/2011/06/12/3694100_a3693990/roger-niello-others-push-raising.html

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LAO wrecks hybrid (pension plan study)

Byuclafaculty

The Legislative Analyst’s Office has opposed a plan in the governor’s budget proposal to give CalPERS funding to study a “hybrid” pension plan for all state public pensions, not just CalPERS. CalPERS is on record as opposing such a plan, so giving it funding to do a study may have been a way for the governor to sink the idea. Under a hybrid plan, there is essentially a cutback defined benefit pension and a defined contribution element. The LAO position is at http://www.lao.ca.gov/laoapp/budgetlist/PublicSearch.aspx?PolicyAreaNum=42&Department_Number=-1&KeyCol=430&Yr=2011

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UC Pension Plan May Be Targeted Today

Byuclafaculty

A group whose funding sources are cloudy – the California Foundation for Fiscal Responsibility – plans a grand unveiling today of a study on pension funding in California. The report below indicates it covers California’s 5 biggest pension funds. After CalPERS and CalSTRS, UCRP is the 3rd largest at the state level. As numerous posts on this blog have indicated, ballot initiatives aimed at capping pensions could affect UC and override the Regents’ action on the UC pension taken last December. UC could be swept into some statewide initiative even if it is not a central target of the study….

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Part III: UCOP & Regents – Have You Talked With the Governor (Yet)? Where Are You?

Byuclafaculty

Below is a press release from Governor Brown’s office issued yesterday. It explicitly mentions CalPERS and CalSTRS. Less clear is what other state plans – including UC’s plan – would be included. One of the headings say that it applies to state and local plans. The release has definite items and some items that are under consideration. I have put in large italics some of the latter items that could pose problems for UC – depending on the precise details. Note that a pension cap is mentioned, but there is no reference to the precise $106,000 figure that earlier press…