CalSTRS

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Follow Me, Says Crane

Byuclafaculty

We have previously reported on a proposed ballot initiative on public pensions in California that, as written, would cover UC.  There appears to be money behind the campaign for this initiative.  Another indication of such money comes in the form of a letter by former UC Regent David Crane on CalSTRS.  Crane was appointed by Gov. Schwarzenegger but the appointment was not endorsed by the state senate and thus ended.  In any event, the letter from Crane addressed to Gov. Brown – which his website says in today’s Sacramento Bee – seems to be part of the larger campaign for…

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The Guv on Pensions: What did he say?

Byuclafaculty

Governor Brown has now held his press conference on public pensions. His proposals clearly covered CalPERS and CalSTRS. Coverage of UC was not mentioned. But the governor did make an off-hand reference to UC’s long pension holiday, i.e., the two-decade period of zero contributions. The governor released a 12-point plan but one element, a kind of total cap on pension amounts, was not mentioned on the list of the twelve. [A cap is mentioned but not linked to defined contributions.] Yet, in response to a reporter’s question, he said a cap was intended but that it was complicated because of…

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Follow Up: GASB proposals could stir things up for UCRP via CalSTRS

Byuclafaculty

Yesterday, we noted proposed changes in public pension accounting rules by GASB, the Governmental Accounting Standards Board. An observation from Academic Council Chair Robert Anderson, added to that blog note, indicated that the GASB proposal would not have a direct impact on UCRP. However, the problem facing UCRP is partly political. As prior blog posts have noted, the governor is planning some kind of pension proposals – apparently requiring a ballot proposition. Such a proposition, depending on how it is worded, could sweep UCRP into a statewide change, even though the Regents enacted their own pension modifications in December 2010….

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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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Piggy-Back

Byuclafaculty

Can UC piggy-back on CalSTRS? We are “education,” too. And we have pension funding issues. If you don’t ask, you surely don’t get. See below: CalSTRS reported ready to seek more state funding Sacramento Bee, 10/11/11, Dale Kasler For more than two years, CalSTRS has been talking about asking state lawmakers for more money to plug its funding gap. Now the teachers’ pension fund believes the Legislature is ready to listen. Pension fund Chief Executive Jack Ehnes said last week he wants Gov. Jerry Brown to include additional CalSTRS funding in a long-awaited pension reform proposal he’s expected to release…

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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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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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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….