Pension funds could lose some shareholder clout
With their massive stock holdings, CalPERS and CalSTRS have been leaders in pushing companies on issues such as sky-high executive pay, captive corporate boards that lack diversity, and hurdles to putting resolutions up for a vote by all shareholders. The two giant pension funds are out front again in a new climate-change wave pushing companies […]
Second chance for major ruling on pension cuts
A case that could result in the state Supreme Court reviewing the California Rule, which has overturned several voter-approved public pension cuts, is fully briefed and ready to be scheduled for oral arguments. As record-high pension costs take a growing bite out of government budgets, causing tax hikes and cuts in staff and services for […]
CalPERS loss triggers more debt payment reform
Investments earning 6.7 percent during the fiscal year that ended June 30 might seem like a good return, particularly after an alarming stock market drop at the end of last year. But for CalPERS it’s a loss that creates new pension debt. The big pension system currently needs earnings of at least 7 percent to […]
How CalPERS-sponsored bill increased pensions
The annual payment to CalPERS for state worker pensions next fiscal year is expected to be $7 billion, a jump from $6.4 billion this year — and a quantum leap from $160 million when a pension increase, SB 400, was approved 20 years ago. It was 1999 and CalPERS was in its golden years, thanks […]
A Tale of Two Cities and Blocked Pension Reforms
A San Diego city attorney urged an appeals court last week to order talks with unions on repaying 4,000 employees for pensions illegally replaced by 401(k)-style plans under an initiative, a cost some estimate could reach $100 million. If the talks result in agreement, the city attorney suggested the pact could go back to voters […]
New pension-cut rulings begin with little change
Voter-approved pension cuts were the first wave of court cases after public pension investment funds had huge losses in a stock market crash a decade ago, creating the need for big bites out of government budgets to pay alarming debt. Ballot measures in cities large and small were overturned by the courts, from a blunt-force […]
High Court to Hear Brown Pension Reform Dec. 5
As he requested, Gov. Brown will get a chance before leaving office to defend a public employee union challenge to his pension reform that some think could result in a ruling allowing pension cuts. The state Supreme Court yesterday announced oral arguments scheduled Dec. 5 in Los Angeles on a firefighter appeal to allow employees […]
Cities look at tax hikes to pay rising pension costs
El Segundo and Arcadia were among two dozen cities urging the CalPERS board last month to avoid another employer rate increase, the fifth in the last five years, when adjusting its $344 billion investment portfolio this month. Last week, the two well-funded cities, both with currently balanced budgets and high service levels, considered sales tax […]
In birth of new state program, what’s in a name?
It’s time to bring in some “Mad Men,” like those vintage Madison Avenue advertising professionals in the critically acclaimed television show, and run the name of a new state retirement savings plan up the flagpole and see who salutes. The current name, Secure Choice, doesn’t say much about a big new program that in five years could […]
CalPERS State Rate Doubles in Decade to $6 Billion
The annual cost of state worker pensions would increase to $6 billion in July in a recommendation from CalPERS actuaries, up $521 million from the current fiscal year and double the amount paid a decade ago. School districts would pay $2 billion next year for the pensions of non-teaching employees, up $342 million from the […]