Mayor Reed calls for deeper reforms

Steven Greenhut: California’s Democrats have become sudden believers in pension reform now that it’s clear that Gov. Jerry Brown’s tax-increase proposal probably won’t pass in November unless Californians see some governmental reform. The Democratic plan mainly deals with new hires and rejects 401(k)-style plans. San Jose Mayor Chuck Reed, who has championed real pension reform in his city, issued this statement today:

“This pension reform agreement is a significant accomplishment for the Governor that will have a positive impact for many jurisdictions. I agree with the Governor that there is more work to be done.

“California needs a constitutional amendment to ensure that the changes aren’t undone by future legislatures and to affirm the ability to make changes to retirement benefits for future work while protecting vested rights employees have already earned.

“California needs to reform the governance of pension funds to ensure independence, accountability, and transparency.

“I look forward to seeing the details of the pension reform legislation as they become available.”

Don’t bet your pension investments that Brown and Co. will follow this advice.

AUGUST 28, 2012

15 comments

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  1. Mike
    Mike 28 August, 2012, 20:33

    Funny how when the barn has already burned down, they figure they might install a fire hydrant.

    Reply this comment
  2. Queeg
    Queeg 28 August, 2012, 22:46

    This ain’t gonna be pretty…..your masters are not going down that easily!

    Reply this comment
  3. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 August, 2012, 23:23

    There is not now and wont be pension reform. A CaAP at $110K!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Hahahahhahaa…that is no cap, that is a fraud.

    $110K is 400% HIGHER than what the AVERAGE CA employee earnes in a year- which ha snow dropped down to $29K. These dorks are nuts, Prop 30 and 38 are DOA, no way they will pass, no way.

    Reply this comment
  4. Tax Target
    Tax Target 29 August, 2012, 06:30

    Bankruptcy here we come! Oh please please please democraps let it fail you bunch of morons. This way you have no choice but to clean up and an absolute memorial to your failed policies! Oh yes, happy days may be here again.

    Reply this comment
  5. Ulysses Uhaul
    Ulysses Uhaul 29 August, 2012, 09:06

    If your so miserable. PACK AND SHIP!

    We have Sept specials on twine, tape and bubble wrap for ya!

    Reply this comment
  6. Rex the Wonder Dog!
    Rex the Wonder Dog! 29 August, 2012, 16:43

    Teddy how much do trucks run from here to Texas or Michigan????

    Reply this comment
  7. Queeg
    Queeg 29 August, 2012, 17:27

    Surcharges up the gazoo for Adelanto boys and Randsburg posers!

    Try Romney Rentals.

    Reply this comment
  8. Queeg
    Queeg 29 August, 2012, 17:29

    Surcharges up the gazoo for Adelanto boys and Randsburg posers!

    Try Romney Rentals.

    Reply this comment
  9. Rex the Wonder Dog!
    Rex the Wonder Dog! 29 August, 2012, 18:52

    Teddy-that comment was for your other sock puppet 😉

    Reply this comment
  10. eatingdogfood
    eatingdogfood 30 August, 2012, 10:45

    Dear Public Sector Employee or Retire : I would like to meet up with you for some Companionship and maybe even some Romance! I need a little Support at this time in my life cause I worked in the Private Sector for a Major Corporation for 45 Years and my Pension is frankly, Pathetic. I guess I’m Lucky to even have a Pension as Pathetic as it is. And the Private Sector Pension that I have, has NO COLA Provisions. So the longer that I am retired, the Pension Check remains the Same. I don’t have any Medical either, Except paying through the nose for Medicare. I know that you Guys and Girls in the Public Sector don’t have those Problems. I helped you Guys and Girls out for 45 Years by again Paying through the Nose in Taxes which supported you Guys and Girls in the Public Sector so that you would be Comfortable. Even though I’m in my 70’s, I can still get it up, so don’t worry about that. And if need be; there are always Chemicals to take care of that kind of Problem. Hoping to hear from you soon.

    Reply this comment
  11. TheBeachBum
    TheBeachBum 30 August, 2012, 10:48

    It’s been smoke and mirrors all along. Always has been and always will, as long as the union controlled legislature is in Sacramento. Same at the local level, too.

    Reply this comment
  12. SeeSaw
    SeeSaw 30 August, 2012, 10:59

    EDF: You should get together and have a cryfest with my spouse. His DB carpenter’s pension was frozen in 1986, when the illegals came and caused the union contracts to collapse. It never gained another pennny until 2008 when he finally got to collect. It doesn’t even cover the medical insurance premium. As you say, anything is better than nothing.

    Reply this comment
  13. Al Moncrief
    Al Moncrief 30 August, 2012, 14:57

    REED’S REFORMS WILL BE STRUCK DOWN IN THE COURTS, RETROACTIVE, UNCONSTITUTIONAL.

    WHY ARE CALIFORNIA PUBLIC SECTOR UNIONS NOT SUPPORTING THE BREACH OF THEIR RETIRED MEMBER’S PENSION CONTRACTS LIKE PUBLIC SECTOR UNIONS IN COLORADO? (THE GREATEST ACT OF TREACHERY IN THE HISTORY OF THE U.S. UNION MOVEMENT.)

    PROOF THAT COLORADO’S GOVERNMENT LIES: COLORADO PERA’S ATTEMPT TO TAKE CONTRACTED RETIREE BENEFITS.

    When I was young I held the belief that public service in the United States is honorable, that the United States of America was exceptional in the world, that governments in the United States, while flawed, deserved the respect of citizens.

    Now that I am old, I see that I was naive . . . that governmental entities in the United States will intentionally deceive to achieve their goals, and that over two centuries our soldiers have died for a country that will countenance, and even celebrate, base behavior on the part of its public sector instrumentalities. It saddens me, but if this state of affairs persists in the United States . . . Honor is dead.

    Some background . . .

    You may know that an entity of Colorado state government, Colorado PERA, is attempting to breach its public pension contracts with its retirees. Colorado PERA is attempting a retroactive taking, a “clawback” of accrued, fully-vested pension benefits that were earned by retired PERA members over decades.

    Colorado PERA public pension benefits include a “base benefit” that is set at retirement and a “COLA benefit” that adjusts pensions annually to compensate for inflation. The “base benefit” and the “COLA benefit” are set forth in Colorado statutes with identical force of law and legal status.

    In its attempt to breach retiree contracts Colorado PERA has created a contrivance. The contrivance that Colorado PERA is using is that somehow the “base benefit” is a contractual obligation, but the “COLA benefit” is not a contractual obligation, in spite of the fact that both pension benefits are set forth in law in an identical manner. What this boils down to is attempted, unabashed, theft by government.

    Whether or not Colorado PERA’s attempt to take fully-vested public pension benefits from PERA retirees is ultimately successful in the courts, one fact has been incontrovertibly established . . . Colorado PERA, as an instrumentality of the State of Colorado, is an organization that will lie to achieve its policy goals.

    This is a sad fact for the many employees of Colorado PERA, for the trustees that have served on the Colorado PERA Board of Trustees over 80 years, and for the thousands of PERA members and retirees.
    And now, the proof of the deceit . . .

    Colorado PERA has told us, in writing, that the PERA COLA benefit IS a contractual obligation of PERA . . . and then, after initiating their attempt to breach contracts, Colorado PERA has told us, in writing, that the PERA COLA benefit IS NOT a contractual obligation of PERA. Both of these statements cannot be true.

    Colorado PERA in a written document, to the Colorado General Assembly’s Joint Budget Committee on December 16, 2009 states that the PERA COLA benefit IS a contractual obligation of PERA:

    “The General Assembly cannot decrease the COLA (absent actuarial necessity) because it is part of the contractual obligations that accrue under a pension plan protected under the Colorado Constitution Article II, Section 11 and the United States Constitution Article 1, Section 10 for vested contractual rights.”

    Link:

    http://www.kentlambert.com/Files/PERA_JBC_Hearing_Responses-12-16-2009_Final.pdf

    Colorado PERA on page 23 of its May 6, 2011 “Reply Brief” in the pension case Justus v. State states that the PERA COLA benefit IS NOT a contractual obligation of PERA:

    “Plaintiffs seek to create a contract right that has never existed—an unchangeable COLA for life triggered (inconsistently) by either the date of their retirement or ‘full vesting.’”

    Link:

    http://saveperacola.files.wordpress.com/2011/06/2011-05-06-pera-defendants_-reply-in-support-of-summary-judgment.pdf

    That is simply unbelievable.

    In one document PERA writes “the contract right has never existed.” In the other they write that the COLA benefit is a contractual obligation protected under the Colorado and US constitutions.

    When PERA writes that they need “actuarial necessity” to take the COLA benefit, they are not denying that it is a contractual obligation, in fact, it is an admission of the contractual nature of the COLA benefit.

    For further information regarding Colorado PERA’s attempt to take fully-vested pension benefits from retirees visit saveperacola.com or Friend Save Pera Cola on Facebook.

    Reply this comment
  14. eatingdogfood
    eatingdogfood 30 August, 2012, 15:24

    You really didn’t think that Gov. Moonbeam and his Double Dealing Democratic Cohorts would Stab their Union Bosses in the Back, Did Ya ??? Only one way out of this !!! Declare Martial Law and Nationalize the National Guard and Arrest All the Democrats and Union Bosses on RICO Conspiracy Charges !!!

    Reply this comment
  15. SeeSaw
    SeeSaw 30 August, 2012, 15:37

    The Governor has been trying to appease all you whiners. It doesn’t matter what he puts forth–nothing will be good enough for you. The proposed changes are statuatory, and can be amended, if necessary.

    Reply this comment

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