Posts Tagged: pensions
News
CalPERS is considering small increases in employer and employee rates over decades to reduce the risk of big investment losses, a policy that also would lower an earnings forecast critics say is too optimistic. The proposal is a response to the “maturing” of a CalPERS system that soon will have more retirees than active workers. From two active workers for each retiree in 2002, the ratio fell to 1.45 to one by 2012 and is expected to be 0.8 to 0.6 to one in the next decades.
Opinion
The way our government accounts for public employee pension promises is nothing short of fraud, yet no public official has gone to jail or paid a price for what surely ranks among the largest muggings of citizens in US history. Let me explain. As the stock market reaches record levels, little is heard anymore from public officials who used to blame market declines for rising pension costs.
News
A San Bernardino plan to exit bankruptcy follows the path of the Vallejo and Stockton exit plans, cutting bond debt and retiree health care but not pensions. Then it veers off in a new direction: contracting for fire, waste management and other services. The contract services are expected to reduce city pension costs. Other pension savings come from a sharp increase in employee payments toward pensions and from a payment of only 1 percent on a $50 million bond issued in 2005 to cover pensions costs.
News
Calpensions: In the competition for top talent, the University of California has been able to offer something increasingly rare among leading private universities: a generous lifetime pension. Now a much lower cap on pensions for new UC employees is part of an agreement to freeze UC resident tuition for two years announced last week by Gov. Brown and UC President Janet Napolitano.
News
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.
News
Calpensions: A California plan to give private-sector workers a state-run retirement savings plan is nearing $1 million in contributions, the goal set to pay for a market analysis to help design the program. Although the California plan is still in the formative stage, last week the Illinois legislature approved a plan based on the California model, even using the same name, “Secure Choice.”
News
Calpensions: (UPDATE: Measure Q was rejected by a final vote of 55 percent “no” and 45 percent “yes.”) The city charter has forced San Bernardino to give police two pay raises since declaring bankruptcy, one costing $1 million and the other $1.3 million. Voters were asked to change the charter and prevent a third automatic pay raise.
News
Calpensions: A federal judge, who earlier ruled CalPERS pension contracts can be overturned in bankruptcy, yesterday outlined the difficulty of cutting pensions while approving Stockton’s plan to exit bankruptcy with pensions intact.
News
Calpensions: An appeal of a San Jose pension reform ruling that could cause the state Supreme Court to revisit “vested rights” may be halted by a settlement with unions, if candidates aligned with the policies of Mayor Chuck Reed are defeated next month. Labor unions opposed to the pension reform are backing a candidate for mayor to replace Reed and three candidates for open city council seats, more than enough to shift the power balance.
News
Calpensions: A federal judge ruled last week that Stockton’s CalPERS pensions can be cut in bankruptcy. But Stockton does not want to cut pensions, and the lone holdout creditor says it can be paid without cutting pensions. U.S. Bankruptcy Judge Christopher Klein may have clarified the legal issue of whether CalPERS pensions, widely regarded as untouchable, can be cut if any of the 1,581 local governments in the giant system take the drastic step of bankruptcy.
The CalPERS' governing board during a meeting several years ago at the pension fund's headquarters. (Photo: CalPERS board)
