Employee Relations 07/09/2012
Pension Reform Discussion on Hold
Legislative leaders last week pledged their dedication to
presenting a public pension reform package upon their return from
summer recess (August 6). They then have until August 31 to
send the package to Governor Brown for signing.
Counties will that after Governor Brown released his 12-point pension reform proposal last October, a legislative conference committee was convened for the purpose of crafting comprehensive pension reform legislation. The Committee, made up of Assembly Members Michael Allen, Warren Furutani (Chair) and Beth Gaines and Senators Gloria Negrete-McLeod, Joseph Simitian and Mimi Walters, first met last October and has since held several meetings to discuss aspects of the Governor’s proposal and draft comprehensive reform language. That language must be introduced as a bill which will then go directly to its respective Floor for a vote.
Assembly Member Furutani last week noted that the leadership of the conference committee agrees with Governor Brown on the majority of his reform plan (including pension spiking), however, disagreement has arisen over other aspects, including the structure of the hybrid plan for new employees: lawmakers are hoping to create a plan that caps defined benefits at a certain level and then creates a cash balance plan for the remainder of what an employee earns. CSAC is working closely with legislative staff to ensure that the final language of a pension reform package recognizes the need for long-term sustainability of public pensions, the necessity of balancing the legitimate desires and needs of employees against the publics’ right to a fair and accountable government, and the need for counties to recruit and retain quality employees.
CSAC will keep counties apprised of further action.