Public Employee Pensions Under Attack

The Legislative Analysis Office has completed a review of Assemblyman Roger Neillo's pension reform bill and it is very clear that public employees are under attack in California.  These "reforms" affect current employees who are employed on or after the date this bill (if passed) takes effect. 

The SPOA and PORAC remain committed to protecting your rights and benefits.  If you ever wondered what the SPOA does for you - here is a perfect example.  There is a nationwide wave of public dissent towards public employees, SPOA and other public employee unions have teamed up to educate the voting public about the truth on "pension reform".  This bill is NOT pension reform.  It is an anti-worker, anti-union bill designed to break promises and destroy the financial security of working men and women like you and me.




**CLICK HERE FOR THE FULL REPORT**



Here are a few of the highlights of the report:



No "Full Retirement Age" Prior to 62.  For future public employees (as with public employees working on the effective date of this measure), full retirement ages of less than 62 would not be permitted.



No Pension Greater Than 60 Percent of Highest Three Years' Compensation.  Defined benefit pensions for future public employees could be no more than 60 percent of the highest annual average base wage of the employee over a period of three consecurive years of employment by a public agency.  For future public employees, only base wages could be included in the calculation of wages used in determining the pension benefits.  Payments received for unused sick leave, for example, would be excluded from calculations of the annual average base wage.



No Pensions for Part-Time Employees and Others.  Future public employees would be prohibited from receiving a defined benefit pension unless they had been "a full time employee of one or more public agencies for at least five consecutive years."  In the future, certain public employees who worked on a part-time basis for part of all of their careers - who may be eligible for defined pension benefits under existing laws and contracts - might not be eligible under this provision.



Future Employee Pension Contributions Must at Lease Equal Employer's.  As described above, many public employees make smaller pension contributions each year than their employerws.  Under this measure, future public employees' contributions to pension systems would be required to be at least equal to those of their employers.  This would tend to increase employees' contributions, thereby reducing employers' contributions.



Retroactive Pension increases prohibited.  This measure provides that public agencies may not provide retroactive pension benefit increases to "any public agency employee under any plan".



Likely to Be Challenged in the Courts.  This measure does not appear to provide a comparable new advantage for existing employees to offset the possible changes to the retirement age described above.  Accordingly, it is likely that this part of this measure-reducing retirement benefits for exting public employees- would be challenged in the courts.  This measure states that its various provisions are "severable," meaning that if one part of the measure is held invalid by the courts, this would not affect the other parts of the measure that can still be put into effect.



This measure would take effect on the day after it is approved by a vote of the people.  The measure would not affect benefits of persons who retired from public agency employment prior to the date this measure takes effect.



Folks, now is the time to rally around the SPOA.  Show your solidarity and support for one another.  SPOA is planning a large rally at 1600 hours on Tuesday, May 17; followed by a large showing of support at City Council during the Police Budget presentation.  Please plan on attending.



Sincerely,

Aaron Donato