CalPERS Action Favors CSAC Requests
May 18, 2018
The CalPERS Finance and Administration Committee tabled action on CSAC-opposed AB 1912, until their next meeting in June after lengthy discussion and extensive public comment at this week’s hearing. The action followed requests to do so from CSAC, the League of California Cities, and the California Special Districts Association.
As part of the decision, the Committee directed staff to work collaboratively with stakeholders over the next month and seek alternative solutions to secure pension benefits should a JPA dissolve. CSAC and other opponents expressed strong concern that any action on AB 1912 would be premature given the recently adopted amendments and unresolved issues of how JPA-members could be assigned retroactive pension debt.
The Finance and Administration Committee also voted to take a “support if amended” position on SB 1413 which would authorize CalPERS to establish a 115 Trust through which eligible California public agency employers may prefund their future annual pension contributions. This offers not-for-profit administrative pricing compared to other 115 Trust options. For more information, see CSAC’s joint support letter with the California Special Districts Association.
In other news, local agencies will be meeting with CalPERS staff next week to develop protocols allowing cities, counties, and special districts to seek a “hardship exemption” from the recently adopted 20-year amortization period plan to pay down pension obligations. The goal is to allow agencies that may endure exceptional cost pressures the option to remain at the previously established 30-year amortization period.