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San Jose Police Department Losing Some of Its Best After Pension Reform

"[F]or the first time in the department's history more police officers are resigning -- primarily for jobs with other departments -- than are retiring.... After pension reform and pay cuts, officers can make more money and better benefits elsewhere, even at smaller departments."

Grand Jury Tells California's San Mateo County to Get a Grip on Soaring Pension Costs

"In the 2005-2006 fiscal year, the county paid $78 million in pension costs for current and former employees. Its contribution almost doubled to $146 million by 2011-2012.... The county's pension contribution likely will increase by an additional $13 million in 2013-2014 ... because the assumed rate of return on its investments was lowered by the San Mateo County Employees' Retirement Association in May from 7.75 percent to 7.5 percent.... [W]hile workers are supposed to pay part of their retirement costs, the county picks up a higher than required share of some employee groups such as management, attorneys and employees with more than 10 years of service. As a result, the county picked up 78 percent of some employees' pension costs in 2010-11 instead of 75 percent."

Twenty Percent of Proposed San Mateo County, California, Tax Hike Needed to Fund County Pensions

"[San Mateo] county employee pension costs will rise by $13 million in 2013-14, one fiscal year from now. If the sales tax hike is approved by the electorate, it would provide an anticipated extra $60 million in available revenues on an annual basis. Which means ... the boost in pension requirements would eat up just over 20 percent of the projected new dollars right out of the gate ... Once again, the long-term impact of generous public employee pension costs, not to mention retiree health benefits, remain among the most vexing fiscal realities confronting every taxpayer and public official in the county, and in the state."

Livermore, Calif., Police Agree to Pick Up More Pension Costs

"The city and its police union have reached an agreement on a new two-year deal that will save the city close to $400,000 over the life of the contract and require officers to begin paying a portion toward their pensions.... The contract includes a 2 percent raise for officers starting March 1, 2013 and requires members to begin paying 2.5 percent toward the employee portion of the California Public Employees' Retirement System fund, the state retirement fund, as of July 1 and an additional 2.5 percent by March 1, 2013. The city had been paying the full 9 percent of officers' pay required by the fund for the city's police union members."

Showdown Coming on Whether New Pension Law Ends Abuses in Contra Costa, California

"The Contra Costa retirement board members are being told by their lawyer that new state legislation requires them to finally end abusive and costly pension spiking practices they have allowed for years. The new law ... prohibits counting most payments at termination for unused vacation and sick leave as income when computing pensions. It takes effect Jan. 1, so board action could spark an end-of-the-year retirement rush by older county workers who want to grab fatter pensions before the rules change. Some labor representatives on the retirement board are balking at implementing the new law. And the Deputy Sheriffs Association has issued a veiled threat to sue on the grounds that the change would unconstitutionally violate past promises."

Health Insurance Rate Regulation Measure Qualifies for California's November 2014 Ballot

"An initiative that would bring health insurance rate regulation to California has qualified for the November 2014 ballot, setting the stage for a vigorous and costly battle between insurers and consumer groups. The measure ... would give the state insurance commissioner the power to deny certain premium increases if they are deemed excessive. The insurance commissioner has little control over such rate hikes now."

How Bad Pension Accounting Sunk Stockton

"This summer's bankruptcy filing by Stockton is a lesson that fiscal problems have to be dealt with; they don't just fade away. Why would any government think otherwise? Blame flawed assumptions about public pensions: The nationwide use of erroneous standards has papered over the truth about the size of the pension obligations of many states and municipalities."

GM Retirees' Dilemma: Pension or Buyout

"The former General Motors white-collar employees have been given a choice between a lump sum payout of their retirement account or a guaranteed monthly annuity check for the rest of their lives. According to recent published accounts, there is much agonizing over which lever to pull. Anxiety caused by analysis-paralysis is being replayed across all of big-company America as the baby boomer bubble moves into retirement. Corporations see this as a way to rid themselves of the loose cannons on their decks -- their underfunded pension plans."

New Mandatory Program for Private Employers Means California Doubles Down on Pension Promising

"With relatively little national attention, California Gov. Jerry Brown last month signed into law the first state defined benefit pension scheme for private workers.... Like the typical entitlement, this one was designed with modest benefits that can be increased down the road as the program matures. Employees are automatically enrolled in the retirement accounts (unless they opt out) and contribute 3 percent of salary. Employers don't have to contribute.... With automatic enrollment, a broad participant base and basic annuity this plan resembles something between Social Security and CalPERS. That is where the danger lies."

Pension Changes Are Unwarranted Attack on California's Middle Class

"[I]nstead of propping up the middle class, the so-called 'pension reform' proposal outlined by the governor and legislative leaders will undermine California's middle class and strike a blow at the economy when we can least afford it. It will do that by destabilizing a sound pension system that contributes some $26 billion to the state's economy a year, supports more than 90,000 jobs, and generates nearly $7 in economic activity for every $1 invested. By overreaching and proposing to roll back pensions to pre-Ronald Reagan levels, all of that is put at risk."