PENSION INFORMATION CENTER
::California pension debate
The battle to protect your retirement raging in Sacramento
On Jan. 5, Governor Arnold Schwarzenneger pledged in his “State of the State Address” to overhaul the pension system for all of California’s public employees. Assemblyman Keith Richman (R-Northridge) introduced a constitutional amendment to require that state and local workers hired after July 1, 2007, be eligible for only 401(k) plans.
California's current pension system is known as a defined benefit (DB) system. Under this, you're guaranteed a pension based on salary, years of service, and age at retirement. Under the governor's privatized plan, a defined contribution (DC) system, you and your employer make separate contributions (with rates capped at 4%) into a 401 (k) style plan, which requires you to manage your own investment.
On April 7, Schwarzenneger held a press conference to announce that he is withdrawing his support for the current pension reform proposals. This does not mean that the pension privatization is completely off the table; it only means that the current proposal will be reworked to address some of the current concerns.
THE PENSION WARS ARE NOT OVER! Just as soon as the Governor completed announcing that he was going to temporarilypull back his initiative, Richman put two more retirement bills across the desk for the special session. These bills, ACA 1 8X and AB 3X, were DEFEATED ON May 25.
Senator Roy Ashburn submitted approximately 12 bills that in one way or another will reduce your benefits, your rights to benefits, and even how safety positions may be classified. Senator Ashburn’s bills are SB 880 – SB 992.
The DSA is working with associations across the state to secure your retirement. As information becomes available, it will be posted here.
Latest News
San Diego Latest The Union Tribune keeps its eye on the San Diego City Pension Crisis
Richman Bills Fail AB 1X 3 and ACA 1X 8 fail 4-2 in the Assemby PERS&S Committee
Schwarzenegger's Approach Questioned LAPPL asks governor to pull misleading commercials
Governor Withdraws Support for Pension Reform
Video of Press Conference - KXTV News10 Sacramento
CLICK HERE TO DOWNLOAD FREE ADOBE ACROBAT READER.
Facts & Figures
SDCERA ANALYSIS Analysis of the Defined Benefit - Defined Contribution Debate by SDCERA
SDCERA ANALYSIS Analysis of the Richman/Jarvis Proposals
ACA 5 Text of the resolution proposed by Richman on December 6
ACAX 1.1 Text of the amendment proposed in Special Session by Richman on January 6
LAO Addresses Public Pension What Are the Issues Regarding "Defined Benefit" Retirement Plans? How Does the Governor's "Defined Contribution" Proposal Address These Issues? What Other Alternatives Are Available?
Jarvis initiative Statewide ballot initiative
Benefits and Costs The Legislative Analyst's Office Addresses Public Pension Benefits and Cost Concerns
Attorney General Statment one of the many responsibilities of the Attorney General is to prepare a title and summary for proposed initiative measures prior to the circulation of qualification petitions.
Questions And Answers About Privatized Pensions A California Professional Firefighters' review of some of the issues being raised by the supporters of privatized pensions and why they don't hold up.
Myths and Realities of Defined Benefit Plans A CalPERS examination of the relative merits of defined contribution and defined benefit.
NASRA Report - Myths and Misperceptions A comprehensive report from the National Association of State Retirement Administrators.
DB outperforms 401 (k) A report from respected Wall St. analyst Watson Wyatt showing that plans like CalPERS outperformed DC plans from 1995-2004.
Los Angeles County The county examines and opposes the proposed pension reform
California State Association of Counties A draft of what CSAC plans for pension reform.
Nebraska Why one state ditched public pension switch
How other States Fared From an L.A. Times article
Richman's Pension Package December 4, 2004
IMPORANT LINKS TO MORE PENSION DEBATE INFORMATION
PORAC PORAC provides links to several key websites and documents pertaining to the pension debate
CPF Califonia Professional Firefighters No on Privatization
CalPERS The CalPERS Pension Information Center
LAPPL Press Releases, Radio Spots, and new information
SDCERA San Diego County Employee Retirement Association handles the pensions for SDSO employees
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