Posts in Public Pensions.
02.21.2018

As reported in the Sacramento Bee, last week the CalPERS Board unanimously voted to shorten the amortization period of future gains and losses from 30 years to 20 years. The new policy will become effective as of the June 30, 2019 actuarial valuations, with the first payments due in 2021.

Categories: Public Pensions
02.01.2018

CalPERS has updated the 2018 compensation limits for classic and new members, effective immediately.

11.28.2017

Last week, CalPERS did something unusual: It wrote a retort to its critics. In an article titled “Critics Pick Their Facts but Ignore the Truth,” CalPERS responded to two editorials in two different newspapers. CalPERS called the editorial writers “serial critics of defined benefit plans” who “selectively mine the facts so they can advance their anti-pension platforms.”

An editorial ...

Categories: Public Pensions
11.13.2017

California Senate Bill 525, concerning public pensions, was signed into law in September and will take effect on January 1, 2018. The bill changes many provisions of the Government Code. Most of these revisions are minor “housekeeping” changes.

One substantial change affecting many public agencies is the amendment to Government Code section 20636, requiring public employers to report special ...

10.13.2017

On October 2nd, Stanford University’s Institute for Economic Policy Research published a 193-page article summarizing “case studies” of 14 public entities—the State of California, three counties, six cities, three school districts, and one Special District (Bay Area Rapid Transit). The article, charting the entities’ past and predicted pension costs from fiscal years 2002-2003 to ...

Categories: Public Pensions
09.27.2017

On September 23rd, Governor Brown signed Assembly Bill No. 1309, which provides for assessments on employers that fail to report the hiring and payroll information of California Public Employees’ Retirement System (CalPERS) members working in retirement. The fine is 200 dollars per month for each annuitant employee the employer fails to report. The law will go into effect on January 1, 2018.

Details of ...

09.07.2017

A new California appellate court decision affirmed the denial of retiree medical benefits and reinforced a 2011 California Supreme Court ruling that absent clear contractual language or convincing extrinsic evidence of intent, the presumption is that a Memorandum of Understanding (“MOU”) does not create rights that survive the term of the contract.

Specifically, the California Court of Appeal ...

09.01.2017

In a case successfully litigated by this firm, an administrative law judge for the Public Employment Relations Board (“PERB”) determined a school employer was within its rights to enforce long-standing, but previously unenforced collective bargaining language that limited the community college district’s (“District”) contributions for post-retirement health benefits for retirees in ...

07.17.2017

A recent Wall Street Journal article, “Ill-Funded Police Pensions Put Cities in a Bind,” discusses problems cities have experienced after cutting police pensions and other benefits.

According to the article, police and firefighter pensions are among the worst funded in the country, with a median of 71 cents for every dollar needed for future liabilities. In comparison, median funding for general ...

07.14.2017

Today CalPERS reported a preliminary 11.2% net return on investments for the fiscal year ending June 30, 2017. This new figure brings CalPERS’ Total Fund performance to 8.8% for the past five years, 4.4% for the past ten years, and 6.6% for the past 20 years.

Applying a seven percent discount rate (also known as the assumed rate of return), CalPERS estimates it is now 68% funded, a three percent increase from the ...

Categories: Public Pensions

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