Pension Reform Initiative Proposal Will Not Move Forward

Former legislator Roger Niello has pulled his statewide ballot initiative proposal to reform public employee pensions. The proposal would have applied to those public employees hired after the date voters approved the initiative and, among other things, would have:

• Set retirement age at 62 for all public employee classifications.
• Prohibited public agencies from providing retroactive pension increases.
• Limited retirement benefits for public agency employees to 60 percent of the highest consecutive three-year average; final compensation calculation cannot include overtime, bonus pay, severance pay or unused vacation and sick days.
• Required public employees to contribute an amount equal to the employer’s contributions to fund the retirement plan.
• Required public employees to be employed five consecutive years by a public agency to receive retirement benefits.

Counties will note that Governor Brown continues to move forward with his pension reform proposals he put forward in April.

CalPERS Provides Online Assistance for Public Records Act Requests

The California Public Employees’ Retirement System (CalPERS) on Monday announced that it has a new online tool that will assist members of the public in filing a Public Records Act (PRA) request. Individuals can submit their PRA request by filling out a form on the CalPERS website and submitting it online. The requests will then be tracked through to completion by the CalPERS Office of Stakeholder Relations. Click here for more information.

Senate Appropriations Committee Hears Suspense File

The Senate Appropriations Committee convened yesterday to hear legislation that had previously been placed on the Suspense File, which consists of bills that will cost the State $150,000 or more. The following bills of importance to counties passed off the Suspense File and will next be heard on the Senate Floor:

SB 46 (Correa) – Oppose
As Amended April 6, 2011

SB 46, by Senator Lou Correa, would require public officials to file annual compensation disclosure forms. SB 46 applies to those who file Statements of Economic Interest (also known as the Form 700), specifically state, county, and city elected officials and key state, county, and city appointed officials. The bill also applies to state and local officials who are designated employees under their agencies’ conflict of interest codes.

By October 1, 2011, the State Controller must adopt emergency regulations to implement the bill’s requirements. SB 46 requires the State Controller’s regulations to include the format of the compensation disclosure form, including: 

• The public agency’s cost of the public official’s annual salary or stipend.
• The public agency’s cost to provide benefits to the public official.
• The public agency’s reimbursements for the public official’s expenses.
• The public agency’s cost of the public official’s perquisites.
• When the public official completed ethics training, if applicable.

A public official must disclose any amounts received from another entity if the other governing board shares membership with the public agency. 

CSAC opposes SB 46 due to concerns that the new process created by the bill will be duplicative of current reporting requirements existing under the State Controller. Additionally, the bill will create a workload increase for county personnel due to the expansion of those who must file the compensation disclosure form. Lastly, CSAC argues that reimbursements are not considered compensation and are already subject to inspection under the Public Records Act, thereby making their inclusion in the compensation disclosure form unnecessary.

SB 27 (Simitian) – Oppose Unless Amended
As Amended March 11, 2011

SB 27, by Senator Joseph Simitian, amends the Public Employees Retirement Law and the State Teacher’s Retirement System law to limit those items that can be included in the calculation of final compensation for the purpose of prohibiting pension spiking; the bill also prohibits members who retire from public pension systems on or after January 1, 2013 from providing services to an employer covered by a state or local retirement system until the retiree has had a bona fide separation from service for at least six months. 

CSAC has an “Oppose Unless Amended” position on SB 27, requesting that the author delete the section of the bill requiring a six-month separation from service prior to a retiree returning to work. It is important that counties retain the ability to hire retirees as extra help in times of crisis and to fill short-term needs in all areas: public safety, health and human services, road maintenance, etc.

SB 27 will be heard in the Senate Public Employment and Retirement Committee on Monday, March 21.

SB 776 – Request for Comment
As Introduced February 18, 2011

SB 776, by Senator Mark DeSaulnier, would require local workforce investment boards (WIBs) to spend at least 50 percent of funds provided under the Workforce Investment Act on workforce training programs and supportive services for persons enrolled in training. Current law authorizes local WIBs to set local policies and allocate such resources in response to local markets to help the unemployed and underemployed obtain and retain employment.