On Jan. 1, 2008, the Public Employee Post-Employment Benefits Commission will deliver a report to the Governor and the Legislature, identifying the full amount of pension and retiree health care costs and propose ways to manage those costs. It is too early to predict what types of reforms will be proposed by the commission. One of the Commissioners, Curt Pringle, who is currently the Mayor of Anaheim and used to serve as the Speaker of the California State Assembly, stated at the Aug. 23 public hearing, “I believe in every instance, through state law, we can require certain best practices if the legislature passes that and the governor signs that. I think that those [pension reform] recommendations could be applied to every single entity.”

What that means for you is that the commission’s report will impact not only CalPERS, but all pension plans throughout the state, including local systems. As the fight in Orange County and the commission’s upcoming report may prove, the 3% at 50 system is severely in danger.

Keith Richman and John Moorlach are not waiting for the January report. As the year ends, Keith Richman and his pension cutting supporters are making a final push in support of yet another initiative designed to cut public employee pension benefits by as much as 60 percent. They have already moved forward with the Public Employee Benefits Reform Initiative.

Official wording of the proposal was approved by the state Attorney General’s office in mid-August, and Richman began collecting signatures shortly after. The initiative must collect more than 694,000 signatures before Jan. 10, 2008, to make the November 2008 ballot. Richman is aiming for the November election, fearing the lower voter turnout in the February and June elections could favor the unions.

Unlike the previous proposal, the Public Employee Benefits Reform Initiative doesn’t hide behind a false front of helping new employees. Besides attacking pensions in general, the proposal also cuts retiree health benefits for many newly-hired teachers, nurses, firefighters, peace officers, and other public employees.

Rolls back and caps retirement formulas. For public safety, it’s 2.2% at 55. Some public employees would get as little as 1% for every year of employment.
Caps maximum benefits at 60 to 70 percent of salary for 30-years of service.
Increases retirement age. Adds five years to minimum retirement age for firefighters and other public employees.
Removes benefits from collective bargaining. Employers could impose further benefit cuts on new employees.
Attacks long-term employees. Pension based on average of highest five consecutive years’ salary (currently one-year highest).
Harder to Improve Benefits. Requires voter approval on all benefit hikes.

If you see this initiative on the streets, in front of your grocery stores, at the local mall please do two very important things:

#1 Don’t sign the petition—and tell your friends not to sign it.

#2 Let the DSA know right away.

The statewide coalition, Californians for Health Care and Retirement Security, is working to keep the initiative from qualifying for the ballot next year. The coalition includes more than 30 unions representing police, firefighters, teachers, and other state and local employees.

Only by working together can we can track the efforts of pension cutters, see where they are attempting to gather signatures, and defeat Richman once again. Together, we will protect pensions and health care for California’s hard working public employees. 

The Public Employee Post-Employment Benefits Commission is meeting in San Diego on Friday. Dec. 7 from 9 a.m. to 3 p.m. at the San Diego City Council Chambers.