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Moody's Cuts Rating on Orange County California's Pension Bonds

"Moody's Investors Service cut its rating on Orange County's pension obligation bonds by one notch ... Each January, the county sells 18-month bonds to investors, using the proceeds to prepay a year's worth of pension contributions to the Orange County Employee Retirement System. By prepaying, the county gets a 7.75 percent discount on what it pays OCERS ... Moody's said it believes pension bonds are less secure than prior estimates[.]"

Pensions Eat More of the Budget of Orange County, California

"If there ever were a time for reforming public-employee pension systems in Orange County, now is that time. There is momentum, there is opportunity, and there is renewed reason for urgency.... [T]he county's services and programs for [Orange County] residents may be cut if effective action is not taken. Given that the county's annual budget is $5.6 billion, the $4.4 billion in unfunded pension promises is nearly 80 percent of an entire year's spending."

California Governor Signs Two-Tier Pension Law for Orange County, CA

Excerpt: Gov. Arnold Schwarzenegger signed legislation late Sunday night that paves the way for a new two-tiered pension plan for county employees in Orange County, a move that county officials say will help reign in skyrocketing pension costs here. Under the plan current employees get to decide whether to keep their old benefits, or select a hybrid plan that features a reduced pension but also a defined contribution component, similar to a 401K. New employees will also get to choose between the two plans.

Orange County, CA Voters Overwhelmingly Support Effort to Block Public Pension Spikes

Excerpt: Voters overwhelmingly endorsed limiting the power of county supervisors to sweeten pension payouts for public employees. In early returns, Measure J was supported by a whopping 78 percent of the vote, among the absentee and early voting results being reporting as of 9:30 p.m. last night. The measure is a public rebuke of the stewardship that county supervisors have given the pension system, which is now only 73 percent funded and runs a $3 billion unfunded liability.

Fire Authority Liabilities Doubled to a Half-Billion Dollars in 7 Years in Orange County, California

"On top of pensions, [the Orange County Fire Authority] has piled what it owes workers for medical benefits once they retire, workers' compensation, and for vacation, sick and other leave time earned but not taken ... Here, then, is the picture that emerges: Over the last seven years, OCFA's total long-term obligations have more than doubled, to $558 million. That happens to be twice as much as its general fund budget this year ($282 million)."

Orange County, California, Officials Haven't Learned Yet from Troubling Results of Excessive Pension Increases for Government Workers

Excerpt: [T]he United States is facing massive financial problems caused by the granting of unsustainable pension and medical benefits to government workers and dependents.... The Bay Area city of Vallejo has been in the news lately for declaring bankruptcy and perhaps facing a state takeover after city officials gave government unions – especially police and fire unions – CEO-level pay and benefit packages that have consumed more than three-quarters of the city's $80 million general-fund budget and have led to massive shortfalls.... So what are local city officials doing in the face of this daunting evidence that pension-spiking is unsustainable? Spiking pensions, of course, and putting their taxpayers at risk of a Vallejo-like scenario.

Orange County, California, Supervisor Demands Audit of Deputy Sheriffs' Health-Insurance Fund

Excerpt: [The supervisor is] calling for a full audit of a multimillion-dollar health-insurance fund administered by union leaders with public tax dollars. And he wants the sheriff's deputies to accept the same trims on retiree medical benefits imposed on general employees this year.

Some 75 Cities, Counties and Public Agencies in California Trying to Adjust Their Pension Systems

Excerpt: As public ire rises over generous public employee pension systems, momentum for overhaul is rising as well.

Retiree Health Benefits Can Be Modified for Former California Public Employees

"California courts have made pretty clear that they consider pensions a promise that cannot be broken ... But the promises governments made to workers for lifetime health care? Are those different? Can governments alter this perk ...? Seems like the answer is yes. And Orange County was one of the test cases."

California Supreme Court Determines Local Governments Can Crack Down on Pension Spiking

"Reformers had hoped the court would use this case to strike down the California Rule, or conclude that it allows broader adjustments to pension formulas going forward. They didn't get that." [Alameda County Deputy Sheriff's Ass'n v. Alameda County Employees' Retirement Ass'n., No. S247095 (Cal. Jul. 30, 2020)]