Republican Lawmakers Play Politics with Pensions Rather than Seeking Real Solutions

For Immediate Release
Wednesday, April 11, 2012
Californians for Retirement Security

Republican Lawmakers Play Politics with Pensions Rather than Seeking Real Solutions

Following is a statement by Dave Low, Chairman of Californians for Retirement Security, on the politically motivated fist thumping by Republican lawmakers:

SACRAMENTO - "It's unfortunate but predictable that some legislative Republicans are more interested in rushing to play politics with the issue of pensions than in providing long-lasting solutions. It is particularly disappointing that conference committee member Senator Walters, who has uttered nothing but empty sound bites during the committee's deliberations, is so eager to brush aside the concerns of her Republican Assembly colleague on the conference committee about the Governor's proposal as well as experts from around the nation and throughout California who have proposed alternatives to the Governor's plan. Unlike Senate Republicans, public workers whose retirement security depends on wisely-crafted legislation believe that the bipartisan conference should improve the Governor's proposals instead of rubber stamping them."

Californians for Retirement Security is a coalition representing more than 1.5 million public employees and retirees.

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Pensionomics 2012: Defined Benefit Pensions Support $1 Trillion in U.S. Economic Activity

A new national economic impact study finds that DB pension benefits have a significant economic impact: 6.5 million American jobs and $1 trillion in economic output.

The analysis finds that the benefits provided by state and local government pension plans have a sizable impact that ripples through every state and industry across the nation.

According to the report, state and local pension plans in California supported 324,761 jobs that paid $17.4 billion in wages and salaries in 2009, as well as supporting $52.5 billion in total economic output the same year.

Each dollar “invested” by California taxpayers in these plans supported $6.67 in total economic activity in the state, NIRS reports.

Read California's Fact Sheet here: http://www.nirsonline.org/storage/nirs/documents/factSheetsPreviews/Factsheet_CA.pdf

Find the entire report here: http://www.nirsonline.org/index.php?option=com_content&task=view&id=684&Itemid=48

Californians for Retirement Security Applauds Suspension of Pension Measures

For Immediate Release
Wednesday, February 8, 2012
Californians for Retirement Security

Californians for Retirement Security Applauds Suspension of Pension Measures

SACRAMENTO _ Statement from Californians for Retirement Security on the decision to suspend thepension ballot measures:


"We have always believed that changes in California's pension system are best addressed at the bargaining table and through the legislative process, not the ballot box. These sloppily written initiatives were dead on arrival because they were costly and undermined retirement security for millions of middle class Californians. While we are pleased these ballot measures will not go forward, we will continue to work with the Governor to work on real solutions to stop abuses and provide savings in our state's pension systems."

Californians for Retirement Security is a coalition representing more than 1.5 million active and retired public employees.

Gov. Jerry Brown Details Unacceptable Assault on Current and Future Public Employees

For Immediate Release
Thursday, February 2, 2012
Californians for Retirement Security

Gov. Jerry Brown Details Unacceptable Assault on Current and Future Public Employees

A statement from Californians for Retirement Security, a coalition representing more than 1.5 million public employees and retirees, regarding the details from the governor’s pension proposals:

“Governor Brown’s pension proposals amount to an unprecedented and unacceptable assault on current and future California teachers, firefighters, peace officers, school employees, and other public employees. They abrogate the very collective bargaining laws he first enacted, attempt to violate Constitutional rights of current workers, severely harm middle-class and low-wage workers and will force workers in back-breaking manual labor jobs to work 30 to 40 years, until age 67, only to receive 50 percent less in secure defined benefits.
Nonpartisan analyses already have found these sloppy proposals won't yield the savings promised and are full of major legal and constitutional minefields. Research from the University of California, Berkeley, released today, concludes that forcing public employees in California into risky retirement plans like the one the governor proposes will disproportionately harm low and middle-income workers – further crumbling California’s middle class.
We implore the Legislature to reject the Governor's attempts to subvert the collective bargaining process entirely by locking these ill-considered proposals into our state’s Constitution. We urge the Legislature to consider facts instead of Republican-created political rhetoric when examining retirement safety for California workers.

Pensions make up a tiny fraction of the state budget, less than 3 percent, and public employees who already pay up to 12 percent of their salaries into their own retirement plans have made hundreds of millions of dollars in concessions to help save taxpayers’ money. The nonpartisan Legislative Analyst has determined that two proposed ballot measures that contain some of the same proposals outlined by the governor would cost taxpayers at least $1 billion a year for the next three decades. Meanwhile, pension costs are one of the smallest growing costs in all of state government while recently approved tax breaks for corporations are costing taxpayers a billion dollars a year.
Governor Brown and the Legislature should focus on meaningful, legal, and fair pension changes.  We will continue to support them in that endeavor. But we will use everything at our disposal to fight any attempts to rescind collective bargaining rights or break promises to this state’s middle class working families.”

Californians for Retirement Security represents 1.5 million public employees and retirees. Its executive committee includes: California School Employees Association; California Federation of Teachers; California Professional Firefighters; California Faculty Association; California Teachers Association; American Federation of State, County and Municipal Employees; Orange County Employees Association; Peace Officers Research Association of California; Retired Public Employees Association of California; SEIU California; SEIU Local 1000; California Association of Professional Scientists; Professional Engineers in California Government; Glendale City Employees Association; Organization of SMUD Employees; San Bernardino Public Employees Association; San Luis Obispo County Employees Association; Santa Rosa City Employees Association; Association of Orange County Deputy Sheriffs; Fraternal Order of Police Lodge, State of California; Long Beach Police Officers Association; Los Angeles County Professional Police Officers Association; Sacramento Deputy Sheriffs Association; Santa Ana Police Officers Political Action Committee

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New Research: Pension Gutting Proposals will Unduly Harm Low-Wage Workers and cost Taxpayers More

For Immediate Release
Thursday, February 2, 2012
Californians for Retirement Security

New Research: Pension Gutting Proposals will Unduly Harm Low-Wage Workers and cost Taxpayers More

SACRAMENTO - New national and academic research reveals that the hybrid pension plans that Gov. Jerry Brown and Republicans want to force on California’s public employees would strap taxpayers with higher costs and place an unfair burden on the state’s lowest paid public employees.

According to a new University of California, Berkeley, study, the hybrid pension plan included in Gov. Jerry Brown’s pension proposals would “have a disproportionate impact on the retirement security of lower wage workers and those in occupations requiring higher levels of physical activity.” The governor’s plan, along with a pair of proposed pension-gutting ballot measures, would force public employees into a hybrid plan that combines stable defined benefits with risky 401 (k)-style investment plans. “401(k) type plans entail a host of risks and costs that lower-wage workers are ill-equipped to absorb,” the Berkeley study reports.

The analysis also finds that Brown’s proposal to raise the minimum retirement age to receive a full California pension to 67 could “have significantly greater impacts on workers at the bottom of the wage spectrum.”

“When combined with important differences in career timing and life expectancy by income and occupation, the costs of this policy will be borne disproportionately by low-wage workers and blue collar workers who start their working lives earlier and who die younger than professional workers,” the study finds.
 
A full copy of the report is available at http://www.letstalkpensions.com/newsroom/memos. For more information, contact study author Nari Rhee, Ph.D., Associate Academic Specialist, UC Berkeley Center for Labor Research and Education at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Ken Jacobs, Chair, UC Berkeley Center for Labor Research and Education Institute for Research on Labor and Employment at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Meanwhile, a new national report concludes that defined benefit pension plans with reasonable fixes, including many long supported by public employees in California, are the best option for taxpayers. According to the Center for American Progress Action Fund, “the smart money in any state pension-reform plan would go toward smaller-scale changes.”

“While proponents argue that these alternative defined-contribution plans are good for taxpayers, in most cases taxpayers are better off making relatively minor reforms to the current defined-benefit pension system rather than scrapping it entirely. Why? Because the defined-benefit pensions held by public employees are much more cost effective than 401(k)-style retirement plans, costing roughly half as much to provide the same level of retirement benefit to workers such as police officers and firefighters, librarians and teachers, and other public-sector workers.”

Read the entire the issue brief at http://www.americanprogressaction.org/issues/2012/02/pdf/defined_benefit.pdf

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Public Employees Respond to Gov. Jerry Brown’s State of the State Address

For Immediate Release
January 18, 2012
Californians for Retirement Security
Public Employees Respond to Gov. Jerry Brown’s State of the State Address

A statement from Dave Low, chairman of Californians for Retirement Security:

“Governor Brown called for the Legislature to analyze, improve and pass pension reform today. We have been, and continue to be, committed to doing exactly as he asks -evaluating California’s pension system and supporting reasonable, meaningful and legal changes.  We will continue work with the Legislature in its efforts to make this happen.”

California's Bain Capital Connection: "Vulture Capitalists" Funding

For Immediate Release
Tuesday, January 17, 2012

 
SACRAMENTO -- Nearly 60 percent of the contributions to a political committee that hopes to put two pension measures on November ballot come from three Silicon Valley venture capital firms, including one tied to Bain & Company, the controversial firm formerly headed by Mitt Romney whose practices of terminating workers and businesses has become a major issue in the Republican presidential campaign.
 
According to records filed with the California Secretary of State, "California Pension Reform" has collected $128,000, including $25,000 from Jesse Rogers. Mr. Rogers, who is the co-founder of Palo Alto-based Altamont Capital Partners, spent 16 years (1984-2000) at Bain & Company. According to the bio on the Altamont website, Mr. Rogers "founded, built, and served as the Global Head of Bain's Private Equity Group...He also served as the West Coast head of Bain's consumer products practice. He was a Director and was elected to the firm's Governance Committee." (Mr. Rogers was at the firm during the same time period that Mitt Romney was CEO of the company.)
 
Two other Silicon Valley venture capitalists contributed $25,000. They both are Managing Directors at the same firm, Sutter Hill Ventures, also based in Palo Alto.
 
"It's bad enough that these vulture capitalists have a track record of putting people out of work, but now they also want to strip millions of Californians of a secure retirement," said Dave Low, Chairman of Californians for Retirement Security, a 1.6 million member coalition of teachers, firefighters, school employees, police officers, and retire public employees. "Their pension proposals will have the same effect of what Mitt Romney while did at Bain Capital: punish working people and create financial hardship for the middle class while rewarding CEOs with excessive salaries and perks."
 
In its review in late December, the nonpartisan Legislative Analyst (LAO) reported that both of the ballot measures being funded by the venture capitalists would cost California taxpayers more than $1 billion per year for the next 30 years. The LAO also noted they were likely unconstitutional and would face legal challenges, and would not result in any short-term state budget savings.
 
The group sponsoring the measure, led by ex-Schwarzenegger aide Dan Pellissier, has 142 days to collect 807,615 signatures from registered voters to qualify one of the two measures they are proposing for the November ballot. According to independent analysts, it will cost approximately $2 million to qualify the measure.
 
"These sloppily-written measures are turkeys that will be bad for taxpayers and bad for the state's middle class," added Low. "Now that the LAO has concluded that they are costly and fraught with legal and constitutional problems, it would be silly for campaign contributors to put this on the ballot. The proper way to address abuses in the pension system is at the bargaining table and through the effort being made in the Legislature, not with flawed ballot box proposals."
 

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Sacramento Bee: Backers of Calif. public pension overhaul lag in fundraising effort

January 10, 2012

The Sacramento Bee is reporting that an "effort to place a public pension overhaul before California voters this November has moved into a new and challenging phase."

Here is an excerpt from the Bee story:

"Backers have reported contributions from but a handful of donors, and on Tuesday bashed Attorney General Kamala Harris for what they said was a "grossly misleading" official description of their measures.

The Sacramento-based California Pension Reform reported raising $128,600 late last month, mostly from Silicon Valley venture capitalists.

Experts say the group needs a huge infusion of cash quickly to have a chance to put one of its two proposals before voters. They are competing with up to a dozen serious initiatives also in play for the November ballot, and changes to districts and new election rules could siphon off even more money.

"It's a crowded environment," said Tim Rosales, a Republican political consultant with the Wayne Johnson Agency in Sacramento, "and a depressed economy."

The law sets a 150-day deadline from Monday for the group to collect 807,615 signatures from registered voters to qualify one of the two measures for the ballot.

All but $1,100 of the money the group raised came in the last two weeks of December. Three Silicon Valley venture capitalists contributed $25,000 each: Jesse Rogers, co-founder of Altamont Capital Partners, and Tench Coxe and G. Leonard Baker Jr., both managing partners of Sutter Hill Ventures."

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Public Employees’ Statement on Pension Measure Titles and Summaries

For Immediate Release
Tuesday, January 10, 2012
Californians for Retirement Security
                                  
Public Employees’ Statement on Pension Measure Titles and Summaries

Dave Low, Chairman of Californians for Retirement Security, on the newly released title and summaries of two pension-gutting ballot measures:

"Just a few short hours after the Attorney General issued the title and summaries for two ballot measures to gut public pensions, backers already are complaining that the facts are getting in their way. The summaries provide straight-forward snapshots of propositions that would strap taxpayers with tens of billions of dollars in new costs in coming decades and break promises to firefighters, teachers, nurses, and other public employees who make up the heart of this state’s middle class.

The proposals’ ultra conservative engineers can’t hide from the facts. These measures will increase costs, harm workers and probably be overturned by the courts for violating Constitutional protections. Backers grasp at straws by attacking the messengers - California’s Attorney General and Legislative Analyst - when they cannot dispute the message.

No amount of finger pointing, sugarcoating or obfuscating can change the fact that these measures are bad for taxpayers and bad for California.  Anyone choosing to fund this ill-advised and poorly drafted campaign will be wasting their money.”

LAO: GOP Pension-Slashing Measures Would Mean "Large Uncertainty" and $1 Billion a Year in New Costs for at Least 30 Years

Tuesday, December 27, 2011
For Immediate Release

LAO: GOP Pension-Slashing Measures Would Mean "Large Uncertainty" and $1 Billion a Year in New Costs for at Least 30 Years
Legislature's Fiscal Watchdog Says Proposals Threaten Massive Legal Challenges, Reduced Returns and Would Hurt CalPERS and CalSTRS

 SACRAMENTO -- The Legislative Analyst’s Office has found that ballot measures being sponsored by leading state Republicans would bring "large uncertainty" to the state's pension systems, cost governments $1 billion more per year for the next 30 years, and likely would force state and local governments to pay more to compensate teachers, firefighters, police officers, and other public employees.

 

"The LAO hit the nail on the head about these sloppily-drafted and extreme ballot measures being advanced by right-wing Republicans," said Steven Maviglio, spokesperson for Californians for Retirement Security, a coalition of more than 1.6 million retired and current public employees. "These unworkable initiatives will be an economic disaster for our state, be tied up in the courts for years, result in no significant savings for decades, and squeeze California's middle class even more. It's exactly why the Legislature should do what the LAO suggested last month: take the time to craft a proposal that will be legal, stop abuses, and result in real savings without decimating the retirement security of millions of hardworking Californians."

 

The LAO reviewed two ballot measures: A.G. Initiative Files 11-0063 and 0064. Both were filed by Dan Pellissier, president of California Pension Reform. Mr. Pellissier is a former Schwarzenegger and Republican legislative aide.

Read more: LAO: GOP Pension-Slashing Measures Would Mean "Large Uncertainty" and $1 Billion a Year in New Costs for at Least 30 Years

Public Employees Respond to Stanford Report

For Immediate Release: Tuesday, December 13, 2011
***For Immediate Release***
Public Employees Respond to Stanford Report

SACRAMENTO – Following is a statement by Dave Low, chairman of Californians for Retirement Security, about the latest so-called study on pensions:

“This so-called academic study is an irresponsible exercise in manipulating numbers and relying on faulty data to support a political agenda. California Common Sense, one of the groups behind this latest attack on public employees, was co-founded by a Tea Party and right-wing former Assembly candidate, and is no more credible than an earlier report by the same group of student researchers that was widely discredited ( See http://www.calpersresponds.com/issues.php/response-stanford-policy-brief).

In its latest hit piece, which also is full of inaccuracies and false assumptions, facts and input from several groups that did not support the study's preset conclusions were roundly ignored.

The state’s largest, internationally respected pension funds are built to weather tough economic times and carry out the promise made to our state’s public employees of a secure retirement. They do not have to invent theoretical mathematical models. The cold, hard facts show that CalPERS earned a 20.7 percent return last fiscal year and an average 8.4 percent return for the last 20 years. CalSTRS rate of return for last fiscal year was more than 21 percent.

The facts also show that modest public employee pension make up a tiny percentage of the state budget. As we watch the dismal news today that our state’s finances continue to crumble and services are cut, it is critical to remember the role that the millions of public employees play in this economy and in providing the very services we are watching devastated. Public employees already have agreed to concessions to cut $600 million in the past two years from pension costs. We challenge you to find another group who has stepped up willingly in such a way to be a part of the solution.”

Californians for Retirement Security is a coalition representing 1.5 million firefighters, teachers, nurses, scientist, engineers, school employees and other public employees across California.

Public Employees Respond to Field Poll on Pensions

For Immediate Release
Wednesday, December 7, 2011
Californians for Retirement Security

Public Employees Respond to Field Poll on Pensions

Dave Low, Chairman of Californians for Retirement Security, on new Field Poll results about public employee pensions:

“It is very revealing that even after an intensive and sustained political campaign attacking public employees, about half of voters believe that public employee pensions are just right or too little while just four in 10 think they are too high. We believe voters have yet to hear meaningful details about the governor’s pension proposals to make an informed decision, and our own polling demonstrates that, given specifics, some of his proposals are very unpopular. Although voters might think it sounds unfair to single out new employees, it is illegal and unconstitutional to impair benefits for current employees. Given all the facts, Californians will not stand for our state government breaking the law and breaking promises to those who have dedicated their careers to serving the public.

Our goal remains simple: We will continue our hard work with the Governor and the Legislature on reasonable, common sense measures to sustain California's retirement system, rebuild our state’s working class, provide adequate retirement benefits, eliminate abuses and confront fiscal realities.”

Californians for Retirement Security represents 1.5 million public employees and retirees.

Public Employees and Retirees Share Stories, Dispel Myths

Thursday, December 1, 2011
Californians for Retirement Security

Pension Truth Squad Appears at Capitol Today Prior to Legislative Hearings
Public Employees and Retirees Share Stories, Dispel Myths

SACRAMENTO _ As lawmakers scrutinize Gov. Jerry Brown’s pension plan, firefighters, engineers, teachers and others from the Pension Truth Squad gathered at the State Capitol today to set the record straight about politically motivated attacks on public worker pensions.

“Gold-plated public pensions are a myth, unless you consider $26,000 a year in California extravagant. The same Wall Street bankers who caused our fiscal crisis now are targeting the retirement security of those who keep our families’ safe, teach our children, inspect the safety of our bridges, schools and hospitals, maintain our highways and so much more,” said Susan Sears,  a retired forklift operator and truck driver for the California Department of Forestry and Fire Protection.

According to the Legislative Analyst’s Office, pension costs are among the smallest and slowest growing costs in all of state government. Pensions make up less than 3 percent of the total budget, while corporate tax loopholes amount to billions. And even as Wall Street misdeeds wreck our fiscal health, public employee pensions inject money into the economy. In Sacramento County, CalPERS pension payments generated $1.1 billion in economic activity last year, according to a study by the pension fund.

Today, several public employees invited to testify at a special legislative hearing planned to tell lawmakers and the governor that they welcome fair and thoughtful changes to California's public pension system and changes to curb abuses. But they warned against forcing millions of working Californians into gambling on risky 401(k)-style retirement plans.
Elk Grove Teacher Maggie Ellis, who spoke at the press conference and testified at the hearing, urged lawmakers to steer clear of quick fixes for political gain.

“California teachers are as concerned as everyone else about our state’s financial situation. But slashing away at public retirement benefits is not the way to solve the problem and could make the situation worse,” Ellis said. “Teachers contribute 8 percent of our salaries to our pensions, do not receive Social Security and most teachers over the age of 65 do not receive retiree health care benefits either.  We earn the retirement benefits we receive and we put that money back into the local economy.”

Many state employees have agreed over the past two years to pay more toward their pensions and to other changes that have saved California $600 million, according to CalPERS. Overall, California public employees’ pension contributions have climbed to as much as 11 percent. In at least 200 California cities, counties and local districts, firefighters, police and other public employees have agreed to increase pension contributions and lower public costs.

“Making changes to the public employees’ retirement system should be done with great care.  Eliminating abuse is arguably necessary but should be done with surgical precision so as not to unfairly impact the innocent. And in the end, anything done should not result in the death of the patient,” said retired El Dorado county employee Sam Koch.

The Pension Truth Squad tour has appeared in 11 California cities and is sponsored by Californians for Retirement Security, which represents 1.5 million public employees and retirees. Speakers today also included: Retired San Joaquin County teacher Helen Holt, state engineer Matt Hansen, retired CalPERS employee Harvey Robinson and Sutter County Child Support Specialist Terry Barber.

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Californians for Retirement Security Statement on LAO Analysis of Governor’s Pension Proposals

Californians for Retirement Security www.LetsTalkPensions.com
For Immediate Release: Tuesday, November 8, 2011
Contact: Steve Maviglio, This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 
Californians for Retirement Security Statement on LAO Analysis of Governor’s Pension Proposals

Following is a statement by Dave Low, chairman of Californians for Retirement Security, a coalition representing 1.5 million public employees in California, on the Legislative Analyst’s Office review of Gov. Jerry Brown’s pension proposals:

"The LAO's mixed assessment of the Governor's pension proposals hits the nail on the head when it says that the Legislature should move forward in a deliberate and reasoned fashion to craft solutions to California's complex pension systems.  There are far too many unanswered questions and lack of details to fairly and accurately evaluate the impact of these proposals.  Those proposals that impair the negotiated benefits of current employees are a legal dead end. As the report points out, these are matters that should be settled at the bargaining table, not in courtrooms. We will continue to work in the upcoming Legislative session, just as we have for the past several years, to achieve the spirit of the Governor's reforms without taking a wrecking ball to the retirement security of California's teachers, firefighters, police officers, and other public workers."

 For the latest news and developments, please visit www.LetsTalkPensions.com and on Facebook (www.facebook.com/LetsTalkPensions) and Twitter (www.twitter.com/PensionFacts).

Public Employees Respond to Governor’s Pension Proposals

***For Immediate Release***
October 26, 2011
Contact: This e-mail address is being protected from spambots. You need JavaScript enabled to view it , Californians for Retirement Security

SACRAMENTO – Following is a statement by Dave Low, chairman of Californians for Retirement Security, about Gov. Jerry Brown’s pension proposals:

Read more: Public Employees Respond to Governor’s Pension Proposals