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Jerry Brown has plans to reform pensions that you did not know. In fact, he never mentioned them as part his State of the State speech. His is not serious about them, but wants the media to claim he has reforms.
Here they are:
"In addition to higher employee contributions and lower pensions for new hires, the Brown plan calls for:
–Considering longer vesting periods and more employee contributions for retiree health care, now costing the state $1.4 billon a year. No money has been set aside for promises made to current workers, expected to cost $50 billion over the next 30 years.
–An end to boosting or “spiking” pensions by manipulating final pay. Schwarzenegger vetoed a bill to curb spiking in county systems sparked by windfalls for two Contra Costa County fire chiefs, saying AB 1987 didn’t go far enough.
–An end to employer contribution “holidays” when investment earnings soar. CalPERS dropped the annual state pension payment from $1.2 billion to $150 million during a stock market boom a decade ago.
–An end to retroactive pension increases for retirees. Retirees in CalPERS and the California State Teachers Retirement System received pension increases of 1 to 6 percent, depending on length of retirement, when the market boomed a decade ago."
Is he asking the legislature to vote for them? No.
Is he touring the State asking for support for them? No.
Is he going to the media to promote them? No.
Good ideas, but it is like a bear in a forest--who knows and who cares. Bottom line: will his unions owners allow this?
More...
Here they are:
"In addition to higher employee contributions and lower pensions for new hires, the Brown plan calls for:
–Considering longer vesting periods and more employee contributions for retiree health care, now costing the state $1.4 billon a year. No money has been set aside for promises made to current workers, expected to cost $50 billion over the next 30 years.
–An end to boosting or “spiking” pensions by manipulating final pay. Schwarzenegger vetoed a bill to curb spiking in county systems sparked by windfalls for two Contra Costa County fire chiefs, saying AB 1987 didn’t go far enough.
–An end to employer contribution “holidays” when investment earnings soar. CalPERS dropped the annual state pension payment from $1.2 billion to $150 million during a stock market boom a decade ago.
–An end to retroactive pension increases for retirees. Retirees in CalPERS and the California State Teachers Retirement System received pension increases of 1 to 6 percent, depending on length of retirement, when the market boomed a decade ago."
Is he asking the legislature to vote for them? No.
Is he touring the State asking for support for them? No.
Is he going to the media to promote them? No.
Good ideas, but it is like a bear in a forest--who knows and who cares. Bottom line: will his unions owners allow this?
More...