Posts from 2017.

On May 28, in one of his final articles after 33 years and 9,000 columns at the Sacramento Bee, state political columnist Dan Walters opined in “Growing Retirement Costs Are Hitting New State Budget Hard” that although the 2017-18 budget proposed by Governor Jerry Brown references the large impact of pension liabilities, it still minimizes this impact.

Walters summarized how the proposed budget ...

Categories: Public Pensions

Last week, CalPERS issued Circular Letters informing school and state employers of their expected contribution rates for the 2017-18 fiscal year. These rates go into effect with the first payroll period that ends in July 2017.

School Employers

School employers will contribute 15.531% of compensation, an increase from the current 13.888%. Total contributions will rise from nearly $1.7 billion to $2 ...

Categories: Public Pensions

As reported by the Sacramento Bee, last week the California Senate’s Public Employment and Retirement Committee voted down by a three-two margin Senate Bill 32, which had been aimed at reducing public pensions’ unfunded liabilities. Republican Senator John Moorlach from Costa Mesa brought the bill; many union representatives testified against it.

SB 32 was modeled after last year’s climate change ...

Last week, the California Supreme Court agreed to review the California Court of Appeal’s December 2016 ruling in Cal Fire Local 2881 v. California Public Employees’ Retirement System, 7 Cal.App.5th 115 (Cal. Ct. App. 2016), that the Public Employees’ Pension Reform Act of 2013 (PEPRA) lawfully eliminated the right of CalPERS members to purchase up to five years of retirement service credit called ...

Two laws that went into effect on January 1, 2017 should help some CalSTRS and CalPERS members.

Special Needs Trusts May Be Designated Beneficiaries

Assembly Bill 1875 amended various sections of the Education Code to allow Defined Benefit Program members and Cash Balance Benefit Program participants to designate a special needs trust as an option or annuity beneficiary. A special needs trust shields the ...

Categories: Public Pensions

Last month, the Bay Area’s Mercury News published an editorial by Dave Low headlined “Opinion: CalPERS Pensions Are Just Fine, Thank You Very Much.” Low heads Californians for Retirement Security, an organization claiming a membership of more than 1.6 million public employees and retirees. Low’s editorial maintained that the pension reforms enacted in 2012 have bolstered the long-term health of ...

Categories: pension reform

In September, we reported on a significant case, Marin Association of Public Employees v. Marin County Employees’ Retirement Association, in which a California appellate court ruled that the government could make reasonable modifications to public employees’ pension benefits without infringing on their vested right to a reasonable pension. We predicted the case would be appealed to the California ...

Categories: Public Pensions

The California Public Employees’ Retirement System (CalPERS) Board of Administration recently approved new draft regulations concerning what types of compensation will be used to calculate pension benefits. These regulations will apply only to members hired on or after January 1, 2013, under the Public Employees’ Pension Reform Act (PEPRA). The regulations are meant to counter pension spiking ...

Categories: Public Pensions

On March 15th, the CalPERS Board of Administration declared the East San Gabriel Valley Human Services consortium in default for failing to pay over $400,000 to fund its pension plan.  According to CalPERS, the consortium’s contract will terminate in 60 days. At that time, the consortium will be liable for approximately $19.3 million, the amount needed to fully fund current and future payments of ...

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