Public employee unions push back with lawsuits over pension reforms

California unions, accustomed to getting their way in the Capitol, lost some ground last year when Gov. Jerry Brown pushed through the Legislature a series of public-pension cuts that affect their members. Now several labor groups have gone to court in an attempt to reverse some of the cuts, forcing Brown to defend legislation he used to persuade voters that he was being frugal with their tax money.
“Nobody expected [unions] to take this lying down,” said Dan Pellissier, president of the advocacy group California Pension Reform.
Read the complete story by reporter Chris Megerian in the Los Angeles Times.

Posted in News | Comments Off on Public employee unions push back with lawsuits over pension reforms

CalPERS Nets 0.14% Return on Investments for FYE 2011-2012

By Morgan Cook | Orange County Register — The giant investment fund that feeds the state’s public employee retirement system contributed far less than expected to the pension kitty last year, fueling a long-standing debate over how much the system can — or should — rely on investments to cover retirement costs in the long haul.
The California Public Employees’ Retirement System, or CalPERS, expects a 7.5 percent annualized rate of return on its more than $200 billion in investments. The expectation was revised downward last year from 7.75 percent, which was CalPERS’ expectation for more than a decade.
But in the fiscal year ending June 30, 2012, the system got just a 0.14-percent net return on its billions in investments, according to CalPERS’ Comprehensive Annual Financial Report for the 2011-12 fiscal year. Read the entire news story . . .

Posted in News | Comments Off on CalPERS Nets 0.14% Return on Investments for FYE 2011-2012

Fate of ballot measures often depends on the wording

Kamala HarrisBy Josh Goodman | Stateline.org — Just a couple of months ago, Dan Pellissier was leading an effort to ask California voters to overhaul the state’s public retirement system. The ballot initiative campaign looked like it had momentum, with polls showing a majority of Californians in support of pension changes. The stage appeared set for a November showdown between fiscal conservatives and public employee unions.
Then, says Pellissier, just as the campaign was gearing up to begin collecting signatures to gain a spot on the ballot, it came to a screeching halt in the office of California Attorney General Kamala Harris.  Read the entire article . . .

Posted in Analysis | Comments Off on Fate of ballot measures often depends on the wording

San Jose’s pension reform ballot measure featured on CBS Evening News

CBS News | The economy is slowly improving, but many cities in California and across the nation are struggling under a mountain of debt, much of it in pension obligations to public employees like policemen and firemen. The city council in San Jose voted yesterday to put a measure on the ballot that would slash the pensions of its union workers in June. CBS News correspondent Ben Tracy explores the issue:

Posted in TV News / Video | Comments Off on San Jose’s pension reform ballot measure featured on CBS Evening News

Attorney General distorts democracy to aid unions

By Steven Greenhut | Orange County Register — We expect all sides in politics to fight hard, given the stakes involved, but our system rests on the broad acceptance of a set of fairly applied rules. We know, for instance, that no matter how nasty the coming presidential election becomes, the loser ultimately will cede power after the final count is in. This isn’t a kleptocracy, where the only redress for the losing side is to take to the streets in a violent revolt.
Unfortunately, California Attorney General Kamala Harris’ recent misuse of power to provide a dishonest ballot title and summary for proposed pension-reform initiatives, which she opposes, comes right out of the totalitarian playbook, where those wielding power recognize no rules of decency or fairness.  Read the entire column . . .

Posted in Column | Comments Off on Attorney General distorts democracy to aid unions

California Pension Reform suspends campaign

The following is a statement from Dan Pellissier, president of California Pension Reform:
Dan Pellissier“California Pension Reform is suspending its effort to qualify an initiative for the 2012 ballot after determining that the Attorney General’s false and misleading title and summary makes it nearly impossible to pass. We will continue to push our elected representatives to reform our broken pension system and if they fail we will focus on qualifying an initiative for 2014. California taxpayers face more than $240 billion in pension debts that grow every year, a brutal math problem that requires courageous leadership instead of the special interest politics that is blocking meaningful reform today.”
BACKGROUND:
“..the title and summary of two pension-reform measures aimed at the November ballot could not have been cast more darkly – and, on some key points, deceptively – if they were written by the public-employee unions that oppose them.” (John Diaz, “Attorney General’s Role in the Initiative Process,” San Francisco Chronicle, January 29, 2012)
“The attorney general’s summary fairly well reflected the opponents’ anticipated arguments against pension reform. It did not represent any reasonable interpretation of impartiality. In fact, unlike the office’s title and boosterish summary of the governor’s tax measure, its selective and shaded characterization of pension-reform provisions did not attempt to accentuate any of the public benefits of reining in pension costs. It was, in a word, unfair.” (John Diaz, “Attorney General’s Role in the Initiative Process,” San Francisco Chronicle, January 29, 2012)
“The latest examples, under Democratic Attorney General Kamala Harris, are the very positive description of the Brown-sponsored tax-increase measure that unions support and the negative, and even misleading, way two proposed public pension initiatives that unions despise are described.” (Dan Walters, “California Politicians Use Power to Fix the Ballot Game,” Sacramento Bee, January 30, 2012)
“…the chosen words clearly make Brown’s measure more palatable to voters and the pension-reform measures more onerous.” (Dan Walters, “California Politicians Use Power to Fix the Ballot Game,” Sacramento Bee, January 30, 2012)
“Harris, like attorneys general before her, appears to have put her thumb on the scale, and issued titles and summaries that serve the political purposes of her political allies.” (Joe Mathews, “Who Should Write Ballot Measure Titles? The Voters,” Prop Zero, February 2, 2012)
“The fact that attorneys general follow their political bearings should not be a surprise to anyone. Not only is the attorney general’s office partisan, but also that particular office is seen as a jumping off point for higher office in the political food chain.” (Joel Fox, “Ballot Measure Titles and Summaries Should Not Be Written by Attorneys General,” Fox & Hounds, January 31, 2012)

Posted in News, Press Release | Comments Off on California Pension Reform suspends campaign

Clamor grows to rein in California's public pension benefits

By Patrick McGreevy | Los Angeles Times — Gov. Jerry Brown came to office promising to reduce the state’s burgeoning pension costs … Saying the system is not financially sustainable, the governor has laid out a 12-point plan to change it. He would raise the retirement age, require many employees to contribute more toward their benefits and stop allowing workers to buy retirement credit for years they don’t work, among other changes. … But key parts of the plan would apply only to people hired in the future — after the overhaul passed the Legislature and became law. … “The governor’s plan doesn’t go far enough,” said Dan Pellissier, president of California Pension Reform, a group led by former state officials that is proposing a ballot measure to rein in pensions further.
Read the entire news story . . .
California Gov. Jerry Brown

Posted in News | 3 Comments

A $2.5 billion pension tsunami in San Mateo County

By Chuck McDougald | Daily Journal — Gov. Jerry Brown is proposing deep cuts in health and welfare programs and warning of cuts to schools, universities and courts if voters refuse to pass tax hikes in November. Taxpayers might find that odd, given that this year’s projected tax revenue is flat or even slightly higher than last year.
Same or higher tax revenue, but draconian cuts in the budget. What are we missing?
Missing from Brown’s cuts versus taxes propaganda are pensions for state workers. A pension tsunami is rolling over California taxpayers, destroying all budgets in its path. Years of out of control pension grabs by politicians, unions and complicit managers have left California taxpayers on the hook for close to half a trillion dollars in unfunded state pension liabilities, according to a recent Stanford University study.
State, county and city budgets are also drowning in pension red ink. San Mateo County is one of the worst offenders. According to a study by Northwestern University’s Kellogg School of Management, our county’s taxpayers owe close to $2.5 billion in unfunded pension liabilities for current and future retirees. Read the entire op-ed . . .

Posted in Op-Ed | Comments Off on A $2.5 billion pension tsunami in San Mateo County

Legislative committee holds hearing on pension reform in Sacramento

Under increasing public and budget pressure to change retirement benefits for state and local government workers, the Legislature is finally holding hearings on a hybrid plan, which combines a 401(k)-type plan with public pensions. Nannette Miranda reports on KABC-TV:

Posted in TV News / Video | 1 Comment

CalSTRS reports 2.3% earnings in 2011

By Dale Kasler | The Sacramento Bee — CalSTRS said today it earned 2.3 percent on its investments in 2011, “a year of extreme market volatility.”  The announcement came a day after CalPERS reported its 2011 results, a gain of 1.1 percent.  Read the entire news story . . .

Posted in News | Comments Off on CalSTRS reports 2.3% earnings in 2011