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7'~" a PENSION REFORM from page 1 ...................................... Eklund thanked the govemor for listening to the Next Steps, It is likely that we will see dis- local government concerns, and for his continuing cussions occurring over the course of several leadership in working for reforms to help local months, with various proposals under consider- governments provide the services that Californians ation prior to any specific ideas appearing as need and deserve. (LeaQue-CSAC-CSDA Press amendments to ACA1X 1 or some other piece of Statement attached.) legislation. The recommendations provided by the League's Pension Reform Task Force will continue to serve as the League's basic frame- work from which to participate in discussions. We have also been working closely with CSAC, and will likely continue to do so in the weeks ahead. 'J .,;\ I' J W;," J~Jt-. ~ .~e ~. " tœ " ' " . , ~" liP. >:. ' ~ ,I ¥ ~""1> .. ~~x.J' for' -~; ~", ~ ~ ~ ' * ~ ' '. '".. T 1".' ~ , ,--' League President Pat Eklund at press conference on pension reform. The governor's proposal, carried in ACA1X 1 (Richman), has been circulating for signature gathering so that it could be placed on a ballot for a speciaí election next fall. His proposal essl3ntially woula require that new state and local government employees be provided a "defined contribution" pension package - a 401 (k) self-directed savings package - in lieu of the "defined benefit" pension currently available to virtually all public sector employees working in federal, state and local governments. The governor's decision to pull back his proposal came after several days of discussions with various local government and other parties about their concerns with the proposal as it is currently contained in ACA1X 1 (Richman). League representatives had met with the governor's representatives last week, discussing the recom- mendations of the League Pension Reform Task Force at some length. Those proposals call for retaining the defined benefit plan model for public pension systems, but with some key reforms. Visit the League website at www.cacities.orq for a copy of the task force report and an analysis of reform alternatives by the task force actuary. The governor has stated that he wants to engage all concerned parties - state and local employers, CalPERS, employees and their survivors, pension plan experts and legislators - in discussions on how best to reform the current state and local pension systems. Several speak- ers at the press conference also reiterated the importance of consulting with all parties, including employees. Key issues to be addressed include long term cost savings, reducing the financial risk of pen- sion systems to taxpayers, and reform of the disability payments system. The governor also stated that if an acceptable reform measure is not produced by the legisla- ture he is prepared to place a constitutional amendment on the June 2006 ballot. League President Pat Eklund confers with Assembly Member Keith Richman and Governor Schwarzenegger on the governor's pension reform announcement. Visit the League's Official Web Site--www.cacities.org PRIORITY FOCUS/PAGE 3 ,_... ..,.- 0......,. 0"'__" """'-'-""'--"'T""'-""'" ,. ....... .