California Public Agency Labor & Employment Blog

California Public Agency Labor & Employment Blog

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Category Archives: Pension

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Is Bankruptcy the Way Out of Pension Obligations?

Posted in Pension, Retirement
This blog post was authored by Paul D. Knothe We are all aware of the ongoing discussion over the rising cost of public pension benefits and whether they are sustainable in the long run. However, one unanswered question was lurking in the background: Is Chapter 9 bankruptcy a way for struggling municipalities to shed these … Continue Reading

The California Public Employees Pension Reform Act Of 2013 Will Be Addressed By The Legislature Tomorrow

Posted in Legislation, Pension, Retirement
This guest post was authored by Alison Neufeld Public sector pension reform has been a hot topic for months. But despite the public focus on the Governor’s 12-Point Pension Reform Plan, voter initiatives, charter amendments, litigation and bankruptcies fueled by unfunded pension liabilities, time seemed to be running out for pension reform during the current … Continue Reading

How the Latest Proposed Pension Reform Bill Will Impact Public School and Community College Employees Enrolled in CalSTRS

Posted in Legislation, Pension, Retirement
Pension reform might still have a fighting chance.  As we mentioned in yesterday’s Special Bulletin, Governor Brown announced that he had reached an agreement with Legislative Democrats to move forward on pension reform with the California Public Employees’ Pension Reform Act of 2013 (”CPEPRA”).   At the eleventh hour, the joint Conference Committee on Pension Reform … Continue Reading

Governor Announces Agreement on Comprehensive Pension Reform Pending Approval of Legislature by Friday

Posted in Legislation, Pension, Retirement
This guest post was authored by Steve M. Berliner Governor Brown issued a press release today indicating that an agreement was reached with legislative Democrats on public employee pension reform at the state level to take effect on January 1, 2013.  Details are sketchy at this point but it does appear that most of the … Continue Reading

Comprehensive Pension Reform For California’s Local Public Employers Will Only Happen At The State Level…But Not Any Time Soon

Posted in Legislation, Pension, Retirement
Does your public agency contract with, or a member of, CalPERS, STRS, or a ’37 Act system?  Have you exhausted all possible ways under those systems to reduce pension costs such as reducing benefits for new hires, eliminating or reducing employer paid member contributions, or reducing special compensation?  Do you want to achieve more cost … Continue Reading

The San Diego Superior Court Follows The Will Of The San Diego Voters And Denies PERB’s Request To Block Implementation Of The Comprehensive Pension Reform Initiative.

Posted in Labor Relations, Pension, Retirement
This guest post was authored by Alison NeufeldThe San Diego Superior Court has denied the Public Employment Relations Board’s request for a preliminary injunction preventing the City of San Diego from implementing Proposition B, also known as the Comprehensive Pension Reform Initiative (CPRI).  This local ballot measure was passed by a significant majority of voters … Continue Reading

Rescission Of Pension Benefits By City Held To Be Lawful

Posted in Pension, Public Safety Issues, Retirement
The vested nature of public employee retirement benefits is a hot topic. On the one hand, there are municipalities dealing with increasing pension costs and unfunded liabilities. On the other hand, there are often times a vested right to future pension benefits for employees and retirees cannot be impaired except under very limited circumstances.  Most … Continue Reading

CalPERS Reduces Employer Impact by Phasing-In Change in Contribution Rates

Posted in Pension, Retirement
On March 14, 2012, our Blog Post examined CalPERS’ decision to lower the discount rate from 7.75 percent to 7.5 percent in its assumption when determining employer contribution rates.  At a meeting of the CalPERS Board of Administration, staff were asked to study the possibility of phasing-in the increased employer contribution rates over a two … Continue Reading

CalPERS Approves Lowering The Discount Rate to 7.5%; CalPERS Employers Will Be Paying Higher Contributions

Posted in Pension, Retirement
On March 14, 2012, the Board of  Administration of the California Public Employees’ Retirement System (“CalPERS”) approved lowering the “discount rate” or “rate of investment return” from 7.75% to 7.5% in its assumptions when it determines employer contribution rates.  This means that employers who contract with CalPERS for pension benefits will see their employer contribution … Continue Reading

California Supreme Court Denies Review Of Court’s Decision That Orange County’s Retroactive Retirement Formula Enhancement Is Not Unconstitutional

Posted in Pension, Retirement
Yesterday, the California Supreme Court denied the County of Orange’s petition to review the decision in County of Orange v. Association of Orange County Deputy Sheriffs (2011) 192 Cal.App.4th 21.  This means the Court of Appeal’s decision stands holding that the County’s grant of a retroactive enhanced retirement formula for employees “all years of service” … Continue Reading