pensions

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Final Nail in Coffin for November Pension Ballot Proposition

Byuclafaculty

At one time, Gov. Brown was insisting that there should be ballot proposition in November limiting public pensions.  As readers of this blog will know, the governor has a plan for public pensions that would override the changes the Regents enacted for the UC pension system in 2010. The time has long passed for an initiative on pensions to make it to the November ballot.  In theory, the legislature could put something on pensions on the ballot despite any time limits.  But in fact legislative Dems don’t like the governor’s plan and would be unlikely to go along with the…

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Sacramento Pension Politics Could Open Door to UC Exemption

Byuclafaculty

Governor Brown has a 12-point pension plan for all public pensions in California that would override UC’s own pension solution.  The legislative leaders have a different view on pensions than the governor but they also have shown no sign of being willing to exempt UC so far. However, while the governor and the legislature tussle over the pension issue, voters have imposed pension changes in local elections, notably in San Diego and San Jose.  The governor has indicated that public sector unions should agree to his plan or they will get worse from local voters.  It appears that Senate leader…

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UC Again in Danger of Being Swept into Statewide Pension Changes

Byuclafaculty

There are various indications that now that the legislature is done (for a time) in dealing with the state budget, its attention is turning toward public pensions. Under the governor’s plan, UC would be swept into a statewide program that would override the changes adopted by the Regents in December 2010.  Among the changes in the governor’s plan would be that the new lower tier would not be exclusively defined benefit but would have to be a hybrid mix of defined benefit and defined contribution.  There would also be a cap of some type on total benefits. (Unclear exactly how…

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July 1: Take a Moment to Remember

Byuclafaculty

Surely you didn’t, but just in case you forgot: Faculty, staff and UC will contribute more to the UC Retirement Plan (UCRP) beginning July 1, 2012.  Rates for faculty and staff will rise to 5 percent of pay, up from roughly 3.5 percent. The university will pay 10 percent of pay, up from 7 percent… Source: http://ucrpfuture.universityofcalifornia.edu/news-updates/uc-retirement-plan-contributions-increasing-july-1-2/. Just one of many things to remember: [youtube=http://www.youtube.com/watch?v=tfY-L5Cp0-0&w=320&h=195]

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Update: UC Tuition Freeze & Other Budget Items Confirmed

Byuclafaculty

Earlier today, we posted an unconfirmed item saying the budget now going through the legislature contains some added funding for UC in exchange for a tuition freeze.  That item has now been confirmed (and it is, as reported, contingent on voter approval of the governor’s tax initiative in November).  So have other elements reported in earlier posts such as added and earmarked funding for the pension (but with no acknowledgment of state liability for the pension).  And the legislature has declined to go along with the governor’s voiding of legislative earmarks for UC and some kind of long-term funding deal…

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Reading the Electoral Tea Leaves on Pensions

Byuclafaculty

Two major cities had pension reform propositions on the ballot yesterday and were being watched concerning voter attitudes on the subject.San Jose voters Tuesday handed Mayor Chuck Reed a crucial victory with his nationally watched pension reform measure passing by a decisive margin.  It was a big night for pension reform, with a San Diego measure also winning by a wide margin. City employee unions who argued the measures are illegal were expected to challenge both in court.  But voter approval of San Jose’s Measure B puts Reed and the city in the vanguard of efforts to shrink taxpayer bills…

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The Great Gazbee

Byuclafaculty

“Gazbee” is how you pronounce GASB, the acronym for the Government Accounting Standards Board.  GASB determines accounting standards for public employers, including public pension plans.  (It’s equivalent for the private sector is FASB – the Financial Accounting Standards Board which is pronounced – you guessed it – “fazbee.”)  From calpensions.com today comes this item: New public pension accounting rules scheduled to be issued next month, once expected by some to reveal massive hidden debt, now seem less likely to trigger a shake-up and are even getting applause from pension officials.  Under the new rules, experts say, most California pension systems…

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Hobgoblin Pensions

Byuclafaculty

Yours truly is not exactly sure what a hobgoblin is, except that consistency was said by Emerson to be the hobgoblin of small minds. As readers of this blog will know, the Regents and UCOP have been effusively praising the governor for somehow committing to funding the UC pension system fully, even though all he has done is said that UC could use some of its state allocation for the pension (which was always the case).  Absent some larger understanding between UC and the powers-that-be in the state on funding UC operations generally as well as the pension, such statements…

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The Governor’s May Revise Budget (including audio)

Byuclafaculty

Governor Jerry Brown presented his May Revise budget for 2012-13 at a news conference earlier today.  It was followed by a question-and-answer session with state Finance Director Ana Matosantos.  In general terms, the May Revise followed the format of the original January proposal in that it included the assumption that voters would approve a tax initiative in November and that, if they didn’t, there would be trigger cuts.  Since January, as readers of this blog will know, revenues came in below forecast levels and a revised tax initiative was negotiated.  In addition, the state has been prevented from making certain…

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Fork in the Road on Public Pensions in California?

Byuclafaculty

Diligent readers of this blog will know the following 7 points about public pension proposals in California (and their relation to UC’s pension plan): 1) The Regents adopted pension changes – essentially a two-tier defined-benefit approach – for the UC retirement system. 2) The governor is pushing a 12-point “hybrid” system (mix of defined benefit and defined contribution) for all public pensions in California that – unless UC is exempted – could override the Regents’ action. 3) Although it is the official position of UC that it wants an exemption, the governor has not agreed to one. 4) The legislature…