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Federal Judge Says Sacramento County Retirees Aren't Entitled to Permanent Health Care Subsidies

"As a cost-saving measure in tough economic times, the Board of Supervisors slashed the subsidy in 2010 by $100 a month -- from a maximum $244 to $144 -- and then, in 2011, to a maximum of $80.64 a month. The [Sacramento County Retired Employees Association] ... argued that the long history of the subsidies created an implied contract guaranteeing them in perpetuity.... [They] claimed that, under the terms of various contracts between the county and its medical plans, its retirement system was required to maintain a minimum level of funding for the subsidies. But U.S. District Judge Kimberly J. Mueller saw it differently, ruling that the association failed to back up its claims."

Sacramento City Manager Details Unfunded Retiree Healthcare Liability

"Most worrisome ... is $440 million in retiree medical benefits that the city has no plan to fund besides annual payments of $11 million from the already battered general fund budget, which funds core city services such as police protection, park maintenance and fire personnel. The total unfunded liability stemming from medical benefits has grown by $60 million in the past five years."

'Airtime' May Boost Sacramento County's [California] Pension Costs

Sacramento County employees are using a controversial perk to boost retirement benefits, possibly adding to the county's rapidly growing pension debt. They're purchasing up to five years' service credit for time they didn't work ? a benefit commonly referred to as 'airtime.'

Educators' Late-career Pay Raises Strain CalSTRS Pension System

A [Sacramento] Bee analysis detailed in a story last month found that the number of six-figure retirees in the CalSTRS system has increased sevenfold since 2005. Most $100,000 pensioners are former school administrators, and large pay bumps in the final years of their employment are a primary reason for the trend.

California Assembly OKs Bill for Workers at Small Firms to Get COBRA Subsidy

Excerpt: On Monday, the California Assembly voted unanimously to approve amendments to a bill (AB 23) that would allow laid-off workers from firms with fewer than 20 employees to qualify for federal subsidies for COBRA coverage, the Sacramento Bee reports (Sanders, Sacramento Bee, 5/12). The legislation applies to the Cal-COBRA program, which provides coverage for former workers from businesses with two to 19 employees (AP/San Francisco Chronicle, 5/11).

CalPERS Toughens Standards on Corporate Governance

Excerpt: The California Public Employees' Retirement System wants companies in its investment portfolio to be environmentally responsible and to have diverse boards of directors. The investment committee of the world's largest public pension fund voted to affirm those standards during Monday's meeting in Sacramento, adding them to the system's Global Principles of Accountable Corporate Governance.

Almost 9,000 CalPERS Retirees Receive at Least $100,000 in Annual Benefits, More Than Quadruple the Number in 2005

The rapid growth in the number of $100,000 pensions is largely a consequence of enhanced retirement benefits approved by local and state governments during the last decade. Tens of thousands of public safety workers, for instance, can retire at age 50 and get most of their annual salary for life.

California's Pension Debt Puts It $175.1 Billion in the Red

"Controller Betty Yee ... noted ... that the debts for 'postemployment benefits' will jump again in the report for the 2017-18 fiscal year, when state retiree health care must be included under GASB's rules. Gov. Jerry Brown's proposed 2016-17 budget pegs unfunded health care obligations at $71.8 billion, and he has been negotiating new contracts with state labor unions that compel employees to begin paying down those costs[.]"

Yet Another Benefits Boost at the California Capitol?

"[A bill now pending before the California Senate] removes the statute of limitations for job-related survivor death benefits for ... current firefighters, police officers, prison guards and other public safety workers but retirees as well.... Its practical effect is to give every police officer, every firefighter, every prison guard or park ranger a taxpayer-funded life insurance policy. To pay for that extraordinary benefit, services will have to be cut. In some jurisdictions, even police and firefighters could be laid off to pay for it."

San Jose Mayor Sues California Attorney General Over Ballot Summary of Pension Initiative

"The lawsuit ... accuses Attorney General Kamala Harris of writing a title and summary that 'uses false and misleading words and phrases which argue for the measure's defeat, is argumentative, and creates prejudice against the measure, rather than merely informing voters of its chief purposes and points' ... Organized labor also objected to Harris' title and summary ... The unions wanted Harris to emphasize the risk they believe the measure poses to the retirement security of both current and future public workers. Harris also should have cast the proposal as sanctioning the abrogation of contracts, labor leaders said, since pensions are normally negotiated and are considered deferred compensation."