pensions

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Yesterday was better

Byuclafaculty

Yesterday, I posted a note that a public pension initiative that might have gone somewhere wasn’t going anywhere. (See the “Failed Fishing” entry.) But today comes news of another that could go somewhere – because, whatever it is, will emanate from the governor. Some readers will recall that the governor – in failed budget negotiations with legislative Republicans – at one point seemed to be offering such things as $100,000 caps. Some will also recall that there was no sign, at the time, that the powers-that-be at UC were informing the governor that they wanted UC to be excluded. From…

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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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Outlawing Holidays

Byuclafaculty

There is a bill pending in the legislature (passed the Assembly; now in the Senate) – applying to CalPERS, not UC – that would effectively ban pension “contribution holidays.” As is well known, UC had the mother of all contribution holidays to its pension fund, one lasting two decades. Had that holiday not occurred, we would not have the underfunding problem we have today. Of course, given the circumstances under which the UC pension holiday developed – overfunding in the face of a state budget crisis at the time – it could be argued that the holiday was unavoidable. But…

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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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Don’t Panic

Byuclafaculty

Some readers of yesterday’s New York Times who read the article about municipalities reneging on pensions may panic, particularly those readers close to retirement. There is a temptation to go for the lump-sum cashout in a panic, i.e., get the money while the getting is good. Before you do, however, it is important to note that states such as California and state agencies such as UC, do not have a legal means to declare bankruptcy. There is no legal way out of their pension obligations. Using the lump-sum option will eliminate your access to retiree health care. It is true…

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Another Public Pension Report

Byuclafaculty

The California Foundation for Fiscal Responsibility – the group that is pushing public pension initiatives in California – has released another report. There is little mention of UC although the UC pension appears on one chart as 73% funded. Most of the report is aimed at CalPERS and CalSTRS. As in the past, the new report of this group aims at greater respectability than some of the hit pieces that have been previously issued on pensions. For example, it reports that public workers in California on a total compensation basis (wages + benefits) are – adjusted for occupations – slightly…

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California Public Pensions: Video Program

Byuclafaculty

Yours truly will be traveling Aug. 9-15 so blogging may be limited. However, you may be interested in this program on California public pensions produced by the Maddy Institute at Cal State-Fresno. It includes an interview with the Legislative Analyst’s Office staffer who handles that topic: Part 1: Part 2: Part 3: Part 4: Part 5: The Maddy Institute’s home page is http://www.maddyinstitute.org/index.html

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Confusing Signs on Prospects for a Pension Initiative (& Everything Else)

Byuclafaculty

Earlier posts on this blog have outlined the possibility that some pension initiative could end up on the 2012 ballot that would override the Regents’ December 2010 decision on the UC pension. There are two “legacy” organizations that descend from the Prop 13 property tax initiative of 1978. In a previous post, we noted that one of them – Peoples Advocate – has filed a pension initiative and seems to be fishing for someone or some group to provide financial backing for a signature and election campaign. But now the other group, the Howard Jarvis Taxpayers Association, has said it…

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More on Pension Initiatives: All Kinds of Clever Ideas Out There

Byuclafaculty

Yesterday, this blog featured some developments that might impede public pension ballot initiatives getting on the ballot that could potentially override the Regents’ action last December revamping the UC pension system. It only costs $200 to file initiatives. For that modest sum, the filer gets an analysis from the Attorney General (including summary description and title) and a fiscal analysis from the Legislative Analyst. Even initiatives that have a snowball’s chance in Hell get the same treatment – which clearly costs the state a lot more than $200. Here is a summary of snowball-type pension initiative that someone thought was…