AB 1606, by Assembly Member Henry Perea, would clarify that that
the factfinding procedure, established in last year’s AB 646
(Chapter 680, Statutes of 2011), may be sought by a union even if
mediation is not required by local dispute procedures.
Little Hoover Commission Reviews Proposal to Move PERB to LWDA
The Little Hoover Commission met over three days this week to
discuss Governor Brown’s proposal to reorganize several state
departments and agencies. Of interest to County Human Resources
and Labor Relations professionals is the proposal to move
the Public Employment Relations Board (PERB) under the umbrella
of the Labor and Workforce and Development Agency (LWDA).
PERB currently operates independent of any state agency.
CalPERS Adopts Phase-In Approach for Employer Contribution Rate
Increase
Last month, CSAC
reported that the California Public Employees’
Retirement System (CalPERS) Board (Board) voted to reduce the
discount rate used for actuarial valuations from 7.75 percent to
7.50 percent.
State Mediation and Conciliation Services to Move to PERB
Secretary of the Labor Workforce Development Agency Marty
Morganstern is planning to move the California State Mediation
and Conciliation Services (SCMS) under PERB (SCMS is currently
under the purview of the Department of Industrial Relations).
SCMS will continue to mediate bargaining and disputes between
labor and employers as well as administer elections to decertify
or certify unions as exclusive bargaining agents and run card
check procedures.
Workers’ Compensation System Reform Discussed in Joint
Legislative Hearing
Legislators convened a joint hearing of the Assembly Insurance
and Senate Labor and Industrial Relations Committees on Wednesday
to hear testimony from various stakeholders regarding the impact
of SB 899 (Chapter 34, Statutes of 2004) on the workers’
compensation permanent disability rating schedule (PDRS).
AB 2039 (Swanson) – Pending
As Introduced on February 23, 2012
AB 2039, by Assembly Member Sandre Swanson, amends the Family
Rights Act to permit an employee to take leave to care for an
independent adult child with a health condition or a seriously
ill grandparent, sibling, grandchild or domestic partner. AB 59
also expands the definition of “parent” to include a
parent-in-law.
This bill is a rerun of AB 59, which was introduced by Assembly
Member Swanson last year and was held in the Assembly
Appropriations Committee.
The California Public Employees’ Retirement System (CalPERS)
Board of Administration (Board) on Wednesday voted to reduce the
discount rate used for actuarial valuations, last changed 10
years ago, to 7.5 percent. Actuarial valuations are performed
annually to determine a plan’s liabilities and contribution rates
necessary to fund them.
The Pension and Health Benefits Committee of the California
Public Employees’ Retirement System (CalPERS) next week will
consider changes to the 7.75 percent discount rate currently used
for actuarial valuations. Actuarial valuations are performed
annually to determine plan liabilities and the contribution rates
necessary to adequately fund them.
The Conference Committee on Public Employee Pensions held its
fourth meeting on Tuesday in Sacramento to examine the impact of
Governor Brown’s proposal to increase the normal retirement age
for public employees.
CSAC Board of Directors Adopts Revised Pension Reform Principles
Recognizing that the long-term sustainability of public pensions,
the need to balance the legitimate desires and needs of employees
against the publics’ right to a fair and accountable government,
and the need for counties to recruit and retain quality
employees, the CSAC Board of Directors yesterday adopted revised
CSAC Guiding Principles on Pension Reform that portray CSAC’s
recognition of a need for statewide reform to ensure that public
retirement systems are sound and fiscally responsible
CalPERS Releases Analysis of Governor’s Hybrid Pension Proposal
In a response to a request by the legislative Conference
Committee on Public Employee Pensions, the California Public
Employees’ Retirement System (CalPERS) on Wednesday released an
actuarial staff analysis of the impact on state employee
retirement costs of implementing a hybrid plan for all new hires,
a proposal included in Governor Brown’s 12-Point Pension Reform
Plan.
California Pension Reform Group Suspends Initiative Campaign
The group, California Pension Reform, this week announced its
decision to suspend its campaign to place two initiatives on the
November 2012 ballot to cut public pensions. The group’s
president, Dan Pellissier, stated its commitment to convincing
Governor Brown and legislators to address public pension reform
and its intent to put an initiative on the November 2016 ballot
should the Legislature not act.
Governor Releases Proposed Language for Pension Reform Plan
Governor Brown yesterday released statutory language to the
Legislature in an effort to place his
pension reform plan on the November 2012 ballot. Since
the proposal, which has not yet been introduced, would amend the
state constitution, a two-thirds vote of the Legislature is
required for its passage.
CalPERS Advises Public Agencies on 960-Hour Work Limit for
Retirees
The California Public Employees’ Retirement System (CalPERS) on
Thursday distributed a
memorandum to all public agencies regarding the
employment of retired annuitants.
The Office of Administrative Law on December 29 approved
emergency regulations filed by the Public Employment Relations
Board (PERB) to implement provisions of AB 646 (Chapter No. 860,
Statutes of 2011).
CalPERS Offers Preliminary Analysis of Governor’s Pension Plan
The California Public Employees’ Retirement System (CalPERS) last
month released a preliminary analysis of Governor Brown’s
12-point pension reform proposal. CalPERS makes it clear that the
analysis does not address all issues that may arise from the
Governor’s plan and will most likely evolve as any legislative or
initiative proposals come forward.
The analysis lists legal and fiscal concerns as well as potential
pros and cons of the Governor’s proposal, including:
The Public Employees Relations Board (PERB) on Thursday adopted
proposed emergency regulations to implement AB 646 (Atkins).
Counties will recall that the bill, as signed by Governor Brown,
authorizes an employee organization, beginning January 1, to
request an advisory factfinding panel regarding impasse before a
public agency may implemen its last, best and final
offer.
Pension Reform a Hot Topic at this Year’s CSAC Annual Meeting
As county officials around the state convene in San Francisco
City and County this month for the CSAC 117th Annual Meeting, the
issue of public pensions has become a hot topic in state
politics. Several proposed initiatives and a reform plan
introduced by Governor Brown last month have furthered the
discussion and Annual Meeting attendees will be able to gain
further knowledge about the issue by attending the following
meetings:
Government Finance & Operations Policy
Committee Meeting
In a report issued
last week, the nonpartisan Legislative Analyst’s Office (LAO)
iterated its opinion that a defined benefit system for public
employees isn’t necessarily bad, but that the deferral of
retirement benefit costs by public employers and employees to
future generations, the lack of flexibility provided to
government agencies to alter benefit and funding formulas and the
disparity between the retirement benefits offered to
Two New Pension Reform Initiative Proposals Submitted
Citing the need to “provide fiscally responsible and adequately
funded pension benefits for all past, current and future
government employees and retirees,” the group “California Pension
Reform” this week submitted requests to the Attorney General’s
Office for titles and summaries for two pension reform proposals.
The Attorney General now has 15 days to provide the titles and
summaries before signature-gathering may begin.
Government Employee Pension Reform Act of 2012, Version #1
Pension Reform Conference Committee Holds First of Three
Meetings
Counties will recall that AB 340, by Assembly Member Warren
Furutani, was amended last month to state legislative intent to
convene a conference committee for the purpose of crafting
comprehensive pension reform legislation. SB 827, by Senator
Joseph Simitian, is the Senate version of AB 340. The Conference
Committee on Public Employee Pensions held its first hearing at
the Carson City Hall in Los Angeles County on October 26.
AB 646, by Assembly Member Toni Atkins, authorizes an employee
organization, if a mediator is unable to effect settlement of a
contract impasse within 30 days of his or her appointment, to
request that the matter be submitted to a factfinding
panel.
Governor Signs Bill to Disallow Prohibition of Project Labor
Agreements
The Governor has signed SB 922, by President Pro tem Darrell
Steinberg, which specifies what must be included in a
project labor agreement (PLA) and that a charter ordinance cannot
be passed that would prohibit the use of PLAs. The following
now must be included in a PLA:
The Institute for Local
Government (ILG) this week released a plain-language
glossary it prepared to assist local officials as they engage in
conversations with constituents, bargaining representatives and
each other.
CalPERS Weighs In on Proposed GASB Pension Accounting Rules
In July, CSAC provided counties with
information pertaining to the new post-employment
benefit accounting and financial reporting proposed by the
Governmental Accounting Standards Board (GASB).
AB 22, by Assembly Member Tony Mendoza, was substantially amended
last week to clarify exemptions to credit reports and clarify the
definitions of “consumer credit report” and “managerial
position.” As counties will recall, AB 22 restricts prospective
employers from using consumer credit reports for employment
purposes. The bill now exempts the following from this
restriction:
Legislation Brings Labor Compliance Monitoring Regulations to
Forefront
AB 436, by Assembly Member Jose Solorio, was gutted and amended
on Tuesday and now contains language allowing California
Department of Industrial Relations (DIR) regulations pertaining
to labor compliance monitoring, passed in a 2009-10 budget
trailer bill, to move forward.
The following bills are awaiting a vote on the Senate Floor; they
are of utmost important to counties, as both will have a
significant impact on the collective bargaining process.
CSAC is in strong opposition to both pieces of
legislation, and urge counties to contact their respective
Senators to relay concern.
AB 646 (Atkins) – Oppose
As Amended on June 22, 2011
The California Public Employees’ Retirement System (CalPERS)
Board of Administration on Wednesday approved changes to its
Terminated Agency Pool (Pool). The Pool contains the assets and
liabilities of public agencies that terminate their CalPERS
pension plan. Funds from the Pool are used to pay benefits when
employees of those public agencies separate from
service.
AB 646 (Atkins) – Oppose
As Amended on June 22, 2011
AB 646, by Assembly Member Toni Atkins, would authorize an
employee organization, if a mediator is unable to effect
settlement of a contract impasse within 30 days of his or her
appointment, to request that the matter be submitted to a
factfinding panel.
Legislation Brings Labor Compliance Monitoring Regulations to
Forefront
AB 436, by Assembly Member Jose Solorio, was gutted and amended
on Tuesday and now contains language allowing California
Department of Industrial Relations (DIR) regulations pertaining
to labor compliance monitoring, passed in a 2009-10 budget
trailer bill, to move forward.
Bill to Prescribe Composition of Personnel Commissions Vetoed by
Governor
Governor Jerry Brown on Monday vetoed AB 455 by Assembly Member
Nora Campos. The bill would have provided that when a local
public agency has established a personnel commission or merit
commission to administer personnel rules or a merit system, the
public agency employer and the employee organization recognized
as the exclusive or majority bargaining agent would each be
required to designate half of the members of the
commission.
SB 2X 9 Labor Compliance Program Regulations Suspended
The Department of Industrial Relations (DIR) last weekend filed a
request with the Office of Administrative Law for an extension of
an emergency action to suspend the operation of last year’s
regulations pertaining to labor compliance programs (LCPs). DIR
noted that the request is in response to questions regarding the
legality of the fees required for bond-funded projects. If
granted, the extension will suspend the effects of the
regulations for 90 days.
GASB Issues Drafts of Proposed Pension Accounting Rules
The Governmental Accounting Standards Board (GASB) last week
issued its Exposure Drafts (proposed versions of a document
issued for open discussion before its release as a final
document) regarding post-employment benefit accounting and
financial reporting. The release of the drafts was the next step
of GASB’s broad effort to improve accountability and transparency
of financial reporting in regard to the financial effects of
employers’ commitments and actions related to pension
benefits.
CSAC Calls Upon Senators Boxer and Feinstein to Support Early
Retiree Reinsurance Program
CSAC has sent a letter to
Senators Barbara Boxer and Dianne Feinstein, requesting their
co-sponsorship of legislation that would provide additional
funding for the Early Retiree Reinsurance Program (ERRP).
AB 325 (Lowenthal) – Oppose Unless Amended
As Amended on June 14, 2011
Assembly Bill 325, by Assembly Member Bonnie Lowenthal, would
provide employees (including temporary, seasonal and part-time) a
right of up to four days of unpaid bereavement leave for the
death of a spouse, child, parent, sibling, grandparent,
grandchild, or domestic partner with a three-month time allotment
to complete the leave allowance.
CalPERS Adopts 2012 Rate Package for Health Care Benefits
Package includes overall 4.1 percent annual premium increase
The California Public Employees’ Retirement System on Wednesday
adopted its 2012 health care rate package, which includes an
overall 4.1 percent annual premium increase. The rates will take
effect for the 2012 calendar year beginning next January 1.
AB 1203 (Mendoza) – Oppose
As Amended on April 27, 2011
AB 1203, by Assembly Member Tony Mendoza, would require local
public agencies to provide paid leaves of absence to public
agency employee representatives of recognized employee
organizations when they are participating in the following
activities:
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:
Labor Agreements for State Employees Head to Governor’s Desk
SB 151 (Chapter No. 25, Statutes of 2011) has been signed by
Governor Brown. The bill contains the negotiated labor agreements
for roughly 60,000 state workers, specifically:
Organization Puts New Pension Reform Proposals Forward
The California Foundation for Fiscal Responsibility (CFFR)
recently released two new pension reform proposals that amend the
state constitution. The proposals have not yet been submitted to
the office of the Secretary of State, the first step in putting a
measure on the state ballot.
Citing the need for fiscally responsible solutions to what the
organization terms a broken pension system, both alternatives do
the following:
California Congressman Introduces Public Pension Transparency
Bill
Representative Devin Nunes (R-CA) last Thursday introduced H.R.
6484, the “Public Employee Pension Transparency Act.” The
legislation finds that nationwide, state and local pension
benefit plans have a total unfunded liability of about $3.23
trillion, but that current government accounting rules obscure
the actual underfunded amount.
Update on Federal Collective Bargaining Legislation
Senate Majority Leader Harry Reid was expected to introduce
a cloture vote this week on Senate Bill 3194, the Public Safety
Employee Cooperation Act (Act). A cloture vote essentially ends a
filibuster in the Senate.
