Posts Tagged: pension

The leaders of two local pension reforms, former San Jose Mayor Chuck Reed and former San Diego Councilman Carl DeMaio, are working with a coalition on a statewide initiative to help local governments make cost-cutting pension reforms. During a break at the Reason Foundation’s third annual Pension Summit in Sacramento last week, the two men said they are “on the same page” and working with a coalition on the details of a proposed initiative for the November 2016 state ballot.

Capensions: The CalSTRS board told its staff and consultants last week to evaluate the risk of investments in thermal coal companies, jumping ahead of pending legislation that would require CalSTRS and CalPERS to divest thermal coal holdings.

Stockton out of bankruptcy, but pension legacy uncertain

A seal of the city of Stockton, Calf. (Photo: Astudio, via Shutterstock)

by ED MENDEL posted 03.02.2015

On the day that Stockton emerged from bankruptcy last week, ending 32 months of debt protection, the final court argument was about the “cram down” imposed on the only creditor that did not cut a deal.

Retiree health care debt: Brown and his accounting loophole

A physician flanked by the California flag. (Illustration: Niyazz, via Shutterstock).

by DAVID CRANE posted 02.16.2015

OPINION: Imagine your friend built up $10,000 of debt from buying Christmas presents on credit. When he announces an intention to eliminate that debt, you ask how. He answers that, from now on, he’s going to purchase Christmas presents only with cash. Confused, you ask, “How do you pay off debt by not incurring more debt?” His response: “I don’t know, but my accountant says it works!” Believe it or not, that is the proposal California Governor Jerry Brown just made to eliminate $72 billion in state retiree health care debt.

For the new plan the state this fiscal year is paying $63.2 million (24.6 percent of pay) for the pensions of 1,407 judges (1,352 active). Judges Retirement System II is 95 percent funded with a debt or “unfunded liability” of $41.2 million.

Legislative legacy: Big bucks for retirees’ health care

Cannery Row workers of the 1950s depicted in an artistic cutout. (Photo: Mr. Interior/Shutterstock)

by ED MENDEL posted 12.22.2014

The debt or “unfunded liability” state Controller John Chiang reported last week for state worker retiree health care, $72 billion, is larger than the unfunded liability for state worker pensions reported by CalPERS in April, $50 billion. It’s a legislative legacy, a debt for state worker services received by one generation that lawmakers decided to let the next generations inherit.

Calpensions: A new comparison with four other large public pension funds found that CalPERS, while scoring average on service, had high pension administration costs — $213 per member a year, nearly twice the average of $108 per member.

Calpensions: A small but affluent Orange County city, with a current staff of only a half dozen employees, would have to pay about $3.6 million to leave CalPERS, the giant state pension system estimated two years ago. “I almost feel like just handing this to a reporter and saying, ‘Look at this.’

A bill that started out as Gov. Brown’s proposal to restructure the CalPERS board emerged from the Legislature last week as a more modest change: a requirement that CalPERS board members receive 24 hours of education in pension fund operations.

Bankrupt San Bernardino announced an agreement with CalPERS last week to pay off an unprecedented pension debt owed for skipping payments to the pension fund for a year — $13.5 million, plus several million more in penalties and interest. Details of the agreement reached in closed mediation were not released. But the city said in a court filing the CalPERS agreement “will help form the basis” for a debt-cutting plan needed to exit bankruptcy.