Fact Check: Pension Givebacks

To:        Interested Parties
From:   Steven Maviglio, Californians for Health Care and Retirement Security
Re:       Fact Check: Pension Givebacks

In addition to the $400 million in savings from public employee unions in last year's repeal of SB 400 -- which then-Governor Schwarzenegger praised -- unions have been making significant concessions in local jurisdictions across the state.

"All I'm asking is for them to reform and roll it back and we will be home free."-Governor Arnold Schwarzenegger, referring to the retirement benefits contained in SB 400.
According to an independent report by the League of Cities -- not exactly a shill for labor -- there have been major changes across the state in public employee pensions.

The League has found that:

  • 22% (almost 1 in 4) cities have implemented a 2nd pension tier, most in the last 2 years
  • 38% (nearly 4 in 10) have implemented cost sharing, most over the last two years
  • 57% of cities who have increased cost sharing have increased employee contributions for fire up to maximum of 9%. 10% have also asked fire agencies to pick up a portion (2-4%)of the employer’s contribution
  • 73% increased police employee contributions, most going up to 9%.1% of POAs have also negotiated picking up 1-4% of the employer contribution
  • 12% of cities have negotiated highest three vs. highest single year.


Conclusion: There is a strong indication that we will continue to see changes adopted at the local collective bargaining table.