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Recently the Governor released his 12-point pension reform plan for state and local government employees. Also, a state pension reform committee is traveling the state seeking input from local agencies and taxpayers about their idea for tax reform.
His proposals include:
- Increases the non-safety retirement age from 55 to 67
- Imposes a "hybrid" system for new workers -- part pension, part 401k-style
- Mandates a 50-50 employer-employee split of pension costs
- Adds three governor's appointments to the PERS Board
- Proposes a range of smaller changes aimed at spiking, state employee health costs
- Elimination of “Air Time” (That’s ARC time for us)
- Highest 3 year final average salary
The impact of this proposal on County retirement systems is unknown. While the Governor is saying his reform plan will affect all systems, he will have a long road fighting labor groups and the county retirement plans themselves to force these changes on our members.
At this time each proposal has a different road to travel. While the elimination of ARC time may come quickly because it may not be a vested benefit, the elimination of highest single year or imposing a “hybrid” pension plan can only be imposed on new employees.
Local 1014s’ position will remain consistent with all County labor groups – leave us alone. We have a well run pension system that is well funded. The county and its employees have spent generations balancing good pension benefits with the needs of the county in financing those benefits. Our benefits don’t need to be changed, our contributions don’t need to be changed and our board governance is fine.
Local 1014 will continue to carry that message to Sacramento and to the Governor. We are in contact with Gerry Browns offices, CPF and our legislative offices and are working hard to carry our message to our state offices.
We feel it is important to highlight the ARC time proposal. We will do all we can to protect this benefit, but whether this is seen as a vested benefit under the law is unknown. If you are considering buying ARC time, please contact LACERA soon and get an estimate.
Look for regular updates from the following links:
http://iaffloacl1014.org
http://local1014.org
http://www.facebook.com/Local1014
http://www.cpf.org
http://www.letstalkpensions.com/newsroom/press-releases/132--pension-truth-squad-public-employees-are-doing-their-part
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