Pension reforms reflect CSBA’s advocacy
Published: September 19, 2012
CSBA largely supported the pension reforms that Gov. Jerry Brown signed into law earlier this month, viewing them as important changes needed to shore up sound fiscal practices for state and local governments and public employees’ pension funds while recognizing and rewarding those workers for years of service.
CSBA’s Delegate Assembly and Board of Directors had studied the issue extensively, and a Pension Reform Task Force developed recommendations that guided CSBA’s advocacy efforts.
“The reforms mirror many of those recommended by CSBA’s task force,” CSBA Legislative Advocate Brian Rivas said of the final bill. “These reforms will help restore public confidence in public pension plans and improve the long-term sustainability of those plans serving California’s school employees.”
No one involved in the issue got everything they wanted. CSBA had favored a hybrid system that would have significantly reduced employer costs for new employees’ pensions, but that approach was dropped late in the negotiations that led to the authorizing legislation, Assembly Bill 340 by Member Warren Furutani, D-Long Beach.
CSBA was neutral on one of the most sensitive provisions of the final reforms, a cap on the amount of new employees’ pay to be used to calculate retirement benefits. For new teachers who participate in the CalSTRS retirement system, up to $132,000 of their annual salaries will be factored into their pensions; for new employees who participate in Social Security, the maximum will be $110,000.
CSBA has more information on pension reform and other issues on its Legislative News Web page: http://bit.ly/UPf28i.