AgdaPkt 2005-03-14 - Laserfiche WebLink

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� .�4 -- � (� LEAGUE PENSION REFORM GUIDELINES PENSION REFORM from page 7• ••••�-•• reform issue, late last year the League organized a • The defined benefit ptan modet for Pension Reform Task Force charged with coming public pension systems should be retained. �P �th a list of recommendations, including pos- sible altematives to the current reform proposals. • CuRent defined benefrt plan options that Comprised of aty managers, finance directors, human resources directors, elected officials and exceed a sound, actuarial based benefit level League staff, the goal of the task force is to de- ' as defined by a Cal PERS 2001 study and/or velop a plan that can demonstrate cost savings to the Aon Georgia State Comparison study local government in the long teRn. The task force shoutd be repealed and closed to future ultimately retained an actuary to anayze cost public employees. savings under various scenarios. • New and exclusive benefit levels should A subcommittee of the League's Employee be enacted for future public employees that Relations Committee recommended the task reduce excessive benefit tevels but establish force report to the board. a fair benefd level that maintains a career employee's standard �f living upon retire- All sides in this debate concede that there is no ment. The specifics of the benefit plan rec- method available to assist in immediate budget ommendations are as follows: shortfalls, at either the state or local level. All reforms are directed at putting some constraints on • Safetv Emplovees: 3% cLD 55 �e skyrodceting cosls of employee pensions. formula, offset by 50% of anticipated The League's Task Force report is designed to social security beneflt for safety grye cities solid recommendations for pension employees with social security cover- reform that are derived from an actuarial basis that age. Safety employees retain the tries to establish a fair, retirement benefit for career current cap on retirement at 90% of employees that will maintain their standard of living final compensation. in retirement. • MiscellaneousEmploveeslNon- �•�•••�••�•�•••••••��••�• safet : 2��0 � 55 formula ot�set by NET HUSTON APPOINTED TO 50% of anticipated social security � benefit for miscellaneous employees HOUSING AND COMMUNITY with social security coverage. A cap of DEVELOPMEWT POSITION 1 QO% of final compensation is placed on newly hired, miscellaneous (non- Janet Huston, Executive Diredor for the League safety) employees. of California Cities' Orange County Division, has been appoirrted by Govemor Schwarzenegger to • The above formulas incorporate a serve as director of communications and govem- "Three-Year-Average" for "flnal compensa- mental affairs for the Department of Housing and tion" calculation. All "Highest Final Year" Communiiy Development. compensation calculations are repealed for �aneYs years of dedicated service to the newly hired employees. League and the Orange County Division made her a much valued member of the League "family". • Any pension reform package should She also worked with the Orange County Council of retain transferability of retirement benefits Governments, where she established ongoing across public sector employers. No em- federal and regional funding for regional initiatives. ployee currently in a defined benefit plan should be required to involuntarily give up a We warmly oongratulate Janet, and look for- defined benefit formula before retirement. ward to working with her in her new position. PAGE 8/PRIORITY FOCUS Visit the League's Official Web Site -- www.cacities.org