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
Regent-designate David Crane was appointed in the waning moments of the Schwarzenegger regime. Crane is noted for favoring the Schwarzenegger-Whitman approach to public pensions. That might make it unlikely under normal circumstances that the Democrats in the legislature would bless his last-minute appointment. Note that if they don’t approve Crane, that denial of a seat would give Governor Brown the opportunity to name someone else. However, Crane has lately been writing that unions should not be blamed for the pension problem, which might make his case more palatable to legislative Democrats – particularly in the context of budget negotiations and…
The City of San Diego just discovered that the C in a DC pension stands for Contribution. Actually, it stands for immediate Cash Contribution. San Diego was the poster child for bad defined benefit pension management even before the current pension crisis in California. However, a potential ballot measure in that city that would switch over to a defined contribution plan is raising questions. The discovery of what C means is good for UC even though we have nothing directly to do with San Diego. Among the various pension changes that have been floating around at the state level as…
As noted in a prior post, one proposed pension initiative that could have overridden the Regents’ December changes in the UC plan has been abandoned and no signature-gathering campaign will be conducted. But there are others possibly on the way, as calpensions.com reports (excerpt): …Dan Pellissier, president of California Pension Reform, is working on an initiative that would cap normal employer contributions at 6 percent of pay and give new hires a 401(k) plan. The employer would be responsible for any previous “unfunded liability,” allowing employer contributions to exceed 6 percent until the debt is paid off. Employees could negotiate…
From the Sacramento Bee State Worker blog today: Former Republican Assemblyman Roger Niello said he will not pursue a signature-gathering campaign for his pension reform proposal because of the diminishing likelihood of a special election on taxes later this year. “Our urgency is gone,” he said. “The reason for filing this measure was to have something in line for a November election alongside the measure on taxes, but that appears unlikely to happen now.” … Full article at: http://blogs.sacbee.com/the_state_worker/2011/05/niellos-pension-reform-initiat.html#ixzz1NNCGZ65A Possible translation: I don’t have $1 million+ needed to get the signatures.
The pension initiative that was filed by legislative Republicans negotiating with Gov. Brown on the state budget now has a title and summary language and so it can be circulated for the needed signatures. It includes UC and would override the Regents’ pension changes enacted last December. Like all initiatives, however, unless someone wants to spend $1-$2 million for commercial firms to get those signatures, it won’t go beyond this stage. The added summary language is below. The actual text of the initiative is below that:May 23, 2011Initiative 11-0007 (Amdt. #1-NS.) The Attorney General of California has prepared the following…
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
An earlier post on this blog analyzes the May Revise news conference held by Gov. Brown on May 16. There is video of that news conference on the governor’s website but – at least on my computer – it tended to pause and freeze. The version on the calchannel was even worse and caused a total crash at one point. So below is the video transplanted to YouTube by yours truly which works best. It is divided into 4 parts due to YouTube time limits. Part 2, it might be noted, contains a statement by the governor that he would…
Earlier blog posts have noted the appointment in late December of David Crane to the UC Regents by outgoing Governor Schwarzenegger. Crane is noted for his advocacy of putting public pension changes on the ballot, e.g., http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/02/04/EDU01HHUPL.DTL As the article below notes, Crane has yet to be confirmed by the California Senate and is facing considerable opposition. It is possible, however, that as part of some larger deal on the budget – which could itself involve pensions, Crane would be confirmed. If that happens, there would be a voice on the Regents that might be advocating some future ballot proposition…
Below is an excerpt from the New York Times Bay Area online edition. It points to the various times when the UC pension was overfunded but pay was frozen (or cut), the Regents diverted some pension funds to the CAP programs in lieu of cash. The CAP programs were basically like mini cash balance plans, i.e., tax deferred savings accounts with a fixed interest rate on the balance. A little-noticed cash benefit for some University of California employees is adding strain to the system’s battered pension plan just as the university prepares for a $500 million reduction in state aid,…
