AgdaPkt 2005-03-14 - Laserfiche WebLink

Browse Search

q . ,� - �s� PENSIONREFORM from page l .... � ...... .. .......... .. .............. . The report calls for retaining the defined benefit governor this week made good on that promise plan model for public pension systems, but with when he kicked off a ballot initiative signature- some key reforms. (See article League Pension gathering at a City of Elk Grove restaurant. Reform Guidelines.) Copies of the complete report and the analysis by the task force actuary are Assembly Hearing Highlights Issues available on the League's Website. (See also the article Board Highlights.) The controversial nature of the proposals was evident at a March 2 hearing of the Assembly Governor, Assemblymember Richman Propose Public Sector Committee, a committee formed for Constitutional Amendments �e special session that meets concurrently with the regular session. The chair of the committee is The League's Task Force report addresses Alberto Torrico — also Chairman of the Assembly issues raised by proposals from Governor Public Employees and Social Securiiy Committee Schwarzenegger and Assemblymember Keith when the Legislature meets in regular session. Richman. Both have introduced constitutional Other members of the special session committee amendments that would require that new state and include: Tom Harman (Vice Chair), Rebecca Cohn, local government employees be provided a"de- Mike Gordon, Paul Koretr, Cindy Montanez and fined contribution" pension package — a 401 (k) Dennis Mountjoy. self-direded savings package — in lieu of the "defined benefit" pension currently available to The March 2 meeting was raucous at times, virtually all public sector with the chairman asking employees working in federal, one witness to leave after state and local governments. �' he repeatedly made dispar- aging remarks about public State Finance Director Tom employees and legislators. Campbell presented the governor's proposal to the Of particular interest in League board of directors at the hearing were the their meeting February 25 in remarks of Gerald Parsky, Novato. He emphasized that Chairman of the UC Boarci the govemor's goal is to of Regents. He pointed out ensure that employees as- that the proposal by sume a greater share of all Assemblymember Keith retirement costs to better Richman, supported by the equalize the employee and �' governor, would cause employer share of the annual '.�- .._. �: ,_;: _ serious troubles for the contribution to CaIPERS. The universiiy in recruiting State Finance Direcbor Tom Campbell addresses administration estimates that talented faculty. He empha- the League board of direcbors on the govemor's this change would save the pension reform proposai. sized that he was not state general fund $2� million opposing the governor, but in FY 2005-06. that he wanted to strongly suggest that there were many other alternative A representative of the California Professional approaches to reduce the costs of public pensions Firefighters Association also addressed the board without causing these serious recruitment and about the reform proposals. She cautioned the retention issues for the university. Parsky's com- board about the morale issues and other difficulties ments were particularly interesting to many, given that cities would face in hiring and retaining public that he is a major player in Republican state safety employees, if the govemor's proposal were politics. to be adopted. League Alternatives Focus on Fairness, Long Both the governor and Richman have vowed to Term Cost Savings take their proposals directly to the voters if the Antiapating the importance of the pension Legislature fails to act on their measures. The Continued on Page 8 Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS/PAGE 7