2010 Annual Meeting Recap

Government Finance and Operations Policy Committee

Summary of Employee Relations Policy Presentation

The Government Finance and Operations (GFO) Committee accepted staff’s recommendation of no changes to the GFO section of the CSAC platform (changes were last adopted to this section in 2008). However, attending supervisors believed it would be helpful to include as an attachment to the GFO platform the restructuring guidelines and pension reform guiding principles adopted by the Board of Directors (BOD) earlier this year. The committee recommended the BOD readopt the GFO sections of the CSAC platform with the inclusion of the aforesaid documents as attachments. The Board will consider the complete platform at their next meeting in March 2011.

Staff presented a summary of activity across the state and in the Legislature on pension issues in 2010, and reviewed reform proposals that the County Administrative Officers Association of California adopted.

Staff also provided a summary of actions taken and those under consideration by policy makers in an effort to prevent the abuses seen in the City of Bell. Additionally, staff outlined the Controller’s new reporting requirement and warned that more will likely be included in legislation next year. The Committee recommended that staff develop an alternative legislative proposal to the varied requirements and legislative proposals now pending. The Committee will review the proposal and the Board will receive the proposal at their next meeting in March 2011.

For policy committee information specific to revenue and taxation policy, please click here.
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Other News

FPPC Proposes Optional Reporting Requirement for Public Officials

The Fair Political Practices Commission held a public meeting last Thursday in Sacramento to hear comments on their recent proposal regarding public official compensation reporting. 

On October 28, the FPPC proposed including an option for government officials to disclose their compensation in their Statements of Economic Interests, or Forms 700. This information, not currently collected by FPPC, would include stipends, car allowances, mortgage loans, bonuses and cashed-out sick leave. While the proposal is currently for an optional addendum to the Form 700, the FPPC has noted that it plans to approach the Legislature next year to make such reporting a requirement.

The FPPC will vote to adopt the plan at their meeting next month.

CalPERS Makes Changes to Health Plan Benefit Design to Comply with Federal Health Care Reform

The California Public Employees’ Retirement System (CalPERS) last week approved health plan benefit design changes intended to conform to national health care reform laws passed by Congress earlier this year. These changes include:

• Eliminating lifetime and annual dollar limits for speech, occupational and physical therapy beginning in 2011.
• Aligning the current list of preventive services with regulatory requirements with an implementation date of January 2011.
• Adopting proposed regulations to support enrollment flexibility to allow parents to enroll their children up to age 26 on their health insurance.

CalPERS Proposes to Suspend Member Home Loan Program

Last week, CalPERS staff recommended suspending new loans for their Member Home Loan Program and the Secured Personal Loan Program.

The Member Home Loan Program helps CalPERS members purchase homes and refinance existing loans. Loans typically have terms of either 30 years or 15 years and offer members a fixed rate of interest, although variable rates are available. The Secured Personal Loan Program allows members to pledge up to 50 percent of their accumulated retirement contributions as collateral for down-payment assistance.

CalPERS attributes the recommendation for suspension to changes in the mortgage marketplace, minimal usage of the programs, minimal investment returns and significant staff resource requirements.

A briefing on the suspension will be held on Friday, December 3, from 1:30-3:00 p.m. at CalPERS Headquarters, 400 Q Street, Lincoln Plaza West Room 1512, or you may join by conference call at 1-800-369-1617, pass code: 5679447. Please RSVP tolaura_enderton@calpers.ca.gov or by calling (916) 795-0944. Stakeholder feedback is requested. The CalPERS Board of Directors will consider the suspension at their meeting in December.