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While this bill will not solve the major problems of the California pension system, it is a minor start.
"A plan by the Assemblys ranking member on pension and retirement issues would bar boosting a favored workers pay solely in order to inflate retirement benefits an action known as "bumping" or "spiking" -- and place local public pension systems under tighter state control.
It would apply to all public pension systems in the state, including the California Public Employees Retirement System, the State Teachers Retirement System and the pension systems in 20 counties that were setup by a 1937 public retirement law. The latter, which have their own boards and administration, include Los Angeles, Orange, Sacramento, Alameda, Mendocino, San Diego, Ventura and others. The full list of the county retirement systems is available here."
The real problem is that in 2-3 years CalPers is going to collapse--it is currently over $200 billion in unfunded liabilities. Finally government is firing employees and forcing many to take early retirement. That, while good, will also collapse the system under the weight of the newly retired.
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"A plan by the Assemblys ranking member on pension and retirement issues would bar boosting a favored workers pay solely in order to inflate retirement benefits an action known as "bumping" or "spiking" -- and place local public pension systems under tighter state control.
It would apply to all public pension systems in the state, including the California Public Employees Retirement System, the State Teachers Retirement System and the pension systems in 20 counties that were setup by a 1937 public retirement law. The latter, which have their own boards and administration, include Los Angeles, Orange, Sacramento, Alameda, Mendocino, San Diego, Ventura and others. The full list of the county retirement systems is available here."
The real problem is that in 2-3 years CalPers is going to collapse--it is currently over $200 billion in unfunded liabilities. Finally government is firing employees and forcing many to take early retirement. That, while good, will also collapse the system under the weight of the newly retired.
More...