ACCCA Town Hall Meeting. Pension reform highlights. Does the need for pension reform exist? Myths about pension reform Legislative proposals Working for public agencies after retirement ACCCA position on pension reform. The scope of the issue. Baby boomer impact on the retirement system
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ACCCA Town Hall Meeting
Pension reform highlights
Does the need for pension reform exist?
Myths about pension reform
Working for public agencies after retirement
ACCCA position on pension reform
Baby boomer impact on the retirement system
Retirement systems not actuarially sound
Decrease in future working population
Perceived fraud in the system (spiking etc.)
Retirees life expectancy increasing
Who pays what toward retirement systems
Management of retirement systems
Retirees receive excessive retirements
The system cannot be changed (vesting)
Hybrid pensions are not the answer
All public retirement systems are the same
Everyone who retires double dips
The retirement system never changes
Initiative Process (6 proposals out 2 still seeking signatures)
Brown Proposal and Republican support
Exemptions for STRS end July 2012 (AB 758)
SB 450 Independent Contractor status
Legislative Pension Reform Committee
When can changes be expected?
Equal Sharing of Pension Costs: All Employees and Employers *
“Hybrid” Risk-Sharing Pension Plan: New Employees *
Increase Retirement Ages: New Employees *
Require Three-Year Final Compensation to Stop Spiking: New Employees *
Calculate Benefits Based on Regular, Recurring Pay to Stop Spiking: New Employees *
Limit Post-Retirement Employment: All Employees
Felons Forfeit Pension Benefits: All Employees
Prohibit Retroactive Pension Increases: All Employees
Prohibit Pension Holidays: All Employees and Employers
Prohibit Purchases of Service Credit: All Employees
Increase Pension Board Independence and Expertise *
Reduce Retiree Health Care Costs: State Employees
* Included in Republican Proposal
Employee Shares in Pension Cost
ACCCA can support the employee contribution toward their pension benefits of at least 50% provided other employee contributions such as Social Security payments are factored into the employee share.
Increase retirement age
ACCCA can support a change in retirement age consistent with changes in the federal social security rules.
Prohibit purchase of service credits
ACCCA can support the elimination of service credit purchase in both STRS and PERS.
Prohibit Pension Holidays
With clarification of the Governor’s intent, ACCCA can support the prohibition of “Pension Holidays.”
Prohibit retroactive pension increases
ACCCA takes a “Watch” position on this aspect of the Governor’s proposal.
Prohibit pension spiking
ACCCA can support the prevention of spiking and the elimination of Creditable Compensation as currently defined.
Require 3 year final compensation average
ACCCA can support the three year calculation of base pay but opposes a five year computation.
ACCCA can support this position
Prohibit employers from making employee retirement contributions
ACCCA can support this provision within the proposal
All other proposals relate to pension system management