SB 32 establishes the California Public Employees' Pension Reform Act of 2017 (PEPRA II) which continues substantial reform to California’s broken public employee pension system began in 2012.
SB 32 will specifically establish a Citizens' Pension Oversight Committee to review pensions year by year, and report to the public on actual pension costs and obligations; base final compensation for all public employees on an average of five years of highest years’ salary; prohibit or “freeze” the ability for cost-of-living adjustments until CalPERS and CalSTRS are 100% funded; require pension boards to create a defined benefit/defined contribution hybrid pension plan for new employees who opt-into the system; require that any employee who separates from the state pension system for a different job and returns after more than one year be re-classified in that pension system as a “new employee”; require CalPERS to limit special compensation categories by significantly narrowing their list of special compensation; define pensionable pay as “the normal monthly rate of pay or base pay” for all public employees; require pension boards to narrow the “safety employees” classification to include only employees who regularly perform their duties at great risk and who are in harm’s way; require CalSTRS and CalPERS to build/increase funding levels by 10% each year until the systems are 100% funded; require CalPERS to reduce its unfunded liabilities to 1980 levels; to be achieved by 2030.
- SacBee: California’s unfunded pension debts may be larger than acknowledged
- Unions kill bill to cut cost-of-living increases for CalPERS pensions, Adam Ashton, April 25 2017
- Orange County Register: Moorlach wants to take pension reform back to the future
- East Bay Times : Why are we crippling our kids with our retirement?
- Bloomberg: California Drivers Pay for Underfunded State Patrol Pension
- John and Ken Show: Sen. John Moorlach on CHP pensions
- The Mercury News: Jerry Brown’s pension reforms have done little to rein in costs
Eric Dietz, (916) 651-4037