AT THE MOMENT.
WE DON'T HAVE A QUORUM SO WE
WILL BEGIN AS A SUB COMMITTEE
AND I THINK THEY'RE MORE LIKE
FOR FOR BEING HERE.
WE WERE BOTH THE BNP AND GOT
EVER SINCE POSSIBLE. SO WITH
THAT.
WELCOME EVERYONE.
WE ARE OF GOING IN SIGNED AN
ORDER AND I BELIEVE I CENTER
VITE ACT.
THANK YOU GOT HERE FIRST SO
WELCOME.
RIGHT ACTION BEFORE YOU BEGIN
SINCE WE DO HAVE A QUORUM LET ME
GO AHEAD AND CALL ROLES LIKE
ESTABLISHED CORE.
THEY'RE CAN PRESENT MORAL LEYVA.
MORLOCK PRESENT FOR LIKE
PRESIDENT PORTANTINO. HERE
PORTANTINO PRESENT.
OKAY WE HAVE A QUORUM.
WELCOME GETS ENTERPRISE WILL
GOOD AFTERNOON MISTER CHAIR AND
MEMBERS.
HIS NINETEEN NINETEEN OUR STATE
IS REQUIRED ALMOST ALL PRIVATE
EMPLOYERS TO PAY THEIR EMPLOYEES
AT LEAST TWICE A MONTH. THE
STATE HOWEVER EXCLUDED ITSELF
FROM THIS REQUIREMENT AND THAT'S
HOW IT'S BEEN FOR THE PAST ONE
HUNDRED YEARS. I PERSONALLY
THINK THAT ONE HUNDRED YEARS IS
LONG ENOUGH. THE STATE NEEDS OF
ALL THE SAME RULES IT REQUIRES
OF ALL OTHER EMPLOYEES. S. B.
TWELVE THIRTY FOUR WOULD REQUIRE
ALL STATE EMPLOYEES TO BE PAID
AT LEAST TWICE A WEEK. TO HELP
ALLEVIATE THE CONCERNS FROM THE
STATE COMPTROLLER'S OFFICE HAVE
AMENDED THE BILL TO DELAY
IMPLEMENTATION UNTIL TWO
THOUSAND TWENTY TO GIVE THEM
TIME TO MAKE THE NECESSARY
CHANGES.
MANY COMPANIES LARGE AND SMALL
MANAGED TO COMPLY WITH OUR LABOR
LAWS APPLE INTEL AND EVEN OUR
LEGISLATIVE PATH STAFF OR ALL
PAID TWICE A MONTH. HECK EVEN
OUR STATE UNEMPLOYMENT INSURANCE
IS PAID OUT TWICE A MONTH SO I
CAN OUR STATE PAYROLL DO THE
SAME I RESPECTFULLY ASK YOUR
ABOUT CERTAIN.
AND THANK YOU.
DEAL WITH IT BUT THIS IS A
SUPPORT.
OKAY.
WITNESS IN OPPOSITION.
ALRIGHT QUESTIONS FROM COMMITTEE
MEMBERS.
RIGHT OKAY SO IT'S BEEN MOVED BY
SPARE MORE LOCK SO I. CAN
SURVIVE ECHO AT LE THANK YOU FOR
BRINGING THIS BILL FORWARD.
I DO NOT APPRECIATE WHAT YOU
FOR A TESTIFIED TO.
I THINK ONE OF THINGS THOUGH.
CERTAINLY HERE IN THE STATE OF
CALIFORNIA.
YOU KNOW WE DO HAVE. A
COLLECTIVE BARGAINING BY
EMPLOYEES THE ADMIT THAT.
SFAR'S I'VE KNOWN.
WHILE CERTAINLY APPRECIATE YOUR.
SENSITIVITY TO.
ATIV WHY THIS IS IMPORTANT FOR
SOME PEOPLE IS NOT SOMETHING
THAT.
HAS BEEN.
REQUESTED.
IS THIS PART OF COLLECTIVE
BARGAINING. SWELL AND I I DO.
PERSONALLY FEEL THAT.
THAT'S SOMETHING I WANT TO
RESPECT AS WELL AS WELL.
AND SO.
UNFORTUNATELY I AM NOT ABLE TO
SUPPORT THE BILL TODAY BECAUSE
OF THAT BUT I DO APPRECIATE
WHERE YOU'RE COMING FROM HER
AND.
SO.
PAY LIKE THAT DO YOU WISH TO
CLOSE YOUR EYE OUT BLOOD TO
CLOSE IN AND THAT IF I MAY JUST.
BURKE VIRTUALLY DESTROYED TOUCH
A LITTLE BIT ON THE COLLECTIVE
BARGAINING PART O IT. I
UNDERSTAND THAT TOTALLY AND.
AND COLLECTED BY GETTING I THINK
IT'S A GIVE AND TAKE BETWEEN
EMPLOYERS AD EMPLOYEES. AND I
THINK THAT.
.
THAT PUTS ME IN A IN A
PREDICAMENT WHERE I'M SAYING WHY
DO STATE EMPLOYEES HAVE WHITE
WHY DON'T THEY HAVE PARITY WITH.
WORKERS IN THE PRIVATE SECTOR
AND THE PRIVATE UNIONS WHY
SHOULD WE TAKE A CHIP AWAY FROM
THEM. A WHEN THEY GO INTO CLICK
MARJORIE AND WITH THAT I ASKED
HER ABOUT THANK YOU.
WELL THANK YOU THANK YOU VERY
MUCH AND.
BUT THEN AGAIN I APPRECIATE YOU
PRESENTING THE BILL SO THE
BILL'S BEEN MOVED BY CENTER MORE
LOCK AND US SECRETARY OF PLEASE
CALL THE ROLL. ADMISSION IS TO
PASS IN A REFER TO SLIDE
APPROPRIATIONS COMMITTEE PAN OUT
NOW PIANO MURROW.
LEYVA NO LEYVA NO MORE LOCK OUR
PUBLIC AYE PORTANTINO.
PORTANTINO.
OKAY AND I UNDERSTAND THAT US A
SUMMER ELLIS ABSENT TODAY SO THE
VOTERS. ONE TO THREE AND THE
BILL BILL FAILS I DO WISH
RECONSIDERATION.
OKAY AS ANY OBJECTION TO
RECONSIDERATION OKAY WILL BE
PLEASED TO GRANT RECONSIDERATION
THANK YOU THANK YOU MIGHT
CENTER.
OKAY SO THE NEXT ITEM IS GOING
TO BE.
ITEM NUMBER TWELVE AS SHE ARE A
TWENTY FOUR BY CENTER JACKSON
WELCOME.
THERE.
ISN'T.
GOOD AFTERNOON MR RICHER AND
MEMBERS I AM HERE TODAY TO
PERCENT SJR TWENTY FOR. A
RESOLUTION CALLING ON CONGRESS
AND THE PRESIDENT TO ADOPT A
COMPREHENSIVE ASSAULT WEAPONS
BAN. AND ALSO CALLING ON CALPERS
TO DIVEST ITS GUN HOLDINGS.
RAPID FIRE ASSAULT WEAPONS.
WITH LARGE CLIPS OF AMMUNITION
HAVE ONLY ONE PURPOSE.
THE MASS SLAUGHTER OF LARGE
NUMBERS OF HUMAN BEINGS.
THEY WERE DESIGNED FOR MILITARY
USE TO ACHIEVE THAT MISSION IN
COMBAT.
FOR NEARLY EIGHTY YEARS FEDERAL
LAW HAS BANNED MACHINE GUNS
GRENADES AND BOMBS OTHER WEAPONS
OF WARS OF WAR LIKE ASSAULT
WEAPONS. THAT ARE SIMPLY TOO
DANGEROUS TO BE IN CIVILIAN
HANDS.
CONGRESS PASSED AN ASSAULT
WEAPONS BAN AS PART OF THE
VIOLENT CRIME CONTROL AND LAW
ENFORCEMENT ACT IN NINETEEN
NINETY FOUR.
BUT IT EXPIRED IN TWO THOUSAND
AND FOUR. BEFORE ITS EXPIRATION
THE FEDERAL ASSAULT WEAPONS BAN
REDUCE THE NUMBER OF SCHOOL
SHOOTING VICTIMS BY FIFTY FOUR
POINT FOUR PERCENT. ACCORDING TO
A QUINNIPIAC UNIVERSITY STUDY.
COMPARED WITH THE TEN YEAR
PERIOD BEFORE THE BAND WAS IN
PLACE THE NUMBER OF MASS
SHOOTINGS DURING THE BAND FELL
BY THIRTY SEVEN PERCENT.
AND THE NUMBER OF PEOPLE DYING
FROM MASS SHOOTINGS.
FELL BY FORTY THREE PERCENT BUT
AFTER THE BAN LAPSED INTO
THOUSAND AND FOR THE NUMBER SHOT
UP AGAIN AN ASTONISHING ONE
HUNDRED AND EIGHTY THREE PERCENT
INCREASE. IN GUN MASSACRES AND
TWO HUNDRED AND THIRTY NINE
PERCENT INCREASE IN DEATHS.
THE ONLY GUN CONTROL MEASURE
THAT IS HAD A STATISTICALLY
SIGNIFICANT EFFECT.
ON THE NUMBER AND SEVERITY OF
SCHOOL SHOOTINGS HIS THE FEDERAL
ASSAULT WEAPONS BAN.
ITS GOAL IS TO STEM HORRIFIC
MASS SHOOTING INCIDENTS.
IT WON'T STOP EVERY GUN MASSACRE
BUT IT WILL CUT DOWN ON THEIR
CARNAGE.
IT WILL ALSO REDUCE THE PROBLEMS
OF POROUS BORDERS FOR STATES
LIKE CALIFORNIA THAT HAVE PASSED
TOUGH GUN CONTROL LAWS.
IN LIGHT OF THE STATISTICAL
SIGNIFICANCE I BELIEVE IT'S TIME
FOR CALIFORNIA'S INVESTMENT
POLICIES COMMANCHE THE VIEWS OF
THE STATE'S CITIZENS AND STAND
WITH THE VICTIMS OF THESE
HORRIFIC CRIMES.
HELL STIRS HAS ALREADY TAKEN THE
STEP OF THE VESTING ITS HOLDING
IN GUN MANUFACTURERS PERHAPS
REALIZING THE DISCONTENT BETWEEN
ITS RETIREE INVESTMENTS. AND
TEACHERS MISSIONS OF KEEPING
STUDENTS SAFE IN THE CLASSROOM.
FURTHER WE KNOW THE PRESSURE IS
MOUNTING ON WALL STREET TO DO
SOMETHING ABOUT GUN VIOLENCE
INDEED. INVESTMENT FIRMS ARE RE
EXAMINING THEIR PORTFOLIOS
DROPPING GUN STOCKS AND ASKING
WEAPONS MANUFACTURERS WHAT
THEY'RE DOING TO MAKE SURE THEIR
PRODUCTS. DON'T END UP IN A MASS
SHOOTING.
SEVERAL MAJOR RETAILERS
INCLUDING DICK'S SPORTING GOODS
HAVE DECIDED TO STOP SELLING A
STOP ASSAULT WEAPON. CLUB STYLE
WEAPONS ALTOGETHER.
AND OTHERS LIKE WALMART WILL BE
REACHING THE AGE TO PURCHASE A
FIREARM IN THEIR STORES TO
TWENTY ONE. IN SHORT GUNS ARE
BAD FOR BUSINESS.
IN THE SPIRIT OF THE STUDENTS
FROM PARK LAND WHO HAVE BEEN
VILIFIED IN MARGINALIZED IN
THEIR QUEST FOR COMMON SENSE GUN
REFORMS. I RESPECTFULLY ASK FOR
YOUR AYE VOTE.
THANK YOU SENATE JACKSON.
WITNESSES IN SUPPORT.
OKAY SEE NO ANY WITNESSES
OPPOSITION.
PACING NINE.
COMMITTEE MEMBER OF CUTS
QUESTIONS AS THEIR MORE LIKE
WORK MORE OF A COMMENT BECAUSE I
KIND OF HAD A CONCERN ABOUT
TELLING INVESTMENT PROFESSIONALS
AT THE RETIREMENT SYSTEMS.
TO DIE BEST A PART THAT'S FROM
HAVING DIFFICULTY WITH THE WITH
THE RESOLUTION.
THANK YOU MISTER CHAIR.
OKAY FILLED UNVEILED BY. A OKAY
WHO FOR THE RESOLUTION OF THE
MOVE BY SIR LEYVA. A SCENE NO
OTHER QUESTIONS FROM COMMITTEE
MEMBERS IT'S WHAT FIRST OF ALL
THANK YOU SENATOR JACKSON UP FOR
BRING THIS RESOLUTION FORWARD
AND FOR TAKING I UNDERSTAND
THEM.
THEIR AMENDMENTS AS WELL. OF
COURSE THIS COMMITTEE HAS BEEN
WRESTLING WITH THE ISSUE.
AROUND.
ENGAGEMENT.
AND DIVESTMENT AND APPRECIATE
YOU WORKING WITH THE COMMITTEE
AND.
GIVING IN THIS HELPS PROVIDE
GUIDANCE TO BUY CALPERS AND
CERTAINLY I THINK A SENDS A
MESSAGE ABOUT WHAT OUR VALUES
ARE HERE INSTEAD OF CALIFORNIA'S
APPRECIATE THE WORK THAT YOU'VE
DONE WITH COMMITTEE ON THAT
BRING THIS FORWARD. TO WITH THAT
OF THE BILL'S BEEN MOVED BY
ASTER LEYVA AND THE MOTION IS TO
BE ADOPTED AND EXITS RIVER. GETS
APPROPRIATIONS OKAY RESOLUTIONS
GOES APPROPRIATIONS.
ALRIGHT IT'S GOING TO
APPROPRIATIONS OKAY.
SO.
SIX A PLEASE CALL THE ROLL.
PM I CAN AYE MORRELL LEYVA AYE
LEVER AYE MORE LOCK. MORE LIKE
NO PORTANTINO. PORTANTINO AYE.
OKAY THAT BILLS OUT THREE ONE
THANK YOU MISTER CHAIRMAN VERSE
THANK YOU. OKAY.
NEXT UP IS A. BAD NUMBER TEN SP
FOURTEEN THIRTEEN BY CENTER
NIELSEN WELCOME.
KEVIN FOR AN AND MEMBERS OF THE
COMMITTEE.
THANK YOU FOR. AN OPPORTUNITY TO
OFFER.
A LITTLE WAY THAT WE CAN.
CHIP AWAY AT OUR PENSION.
LIABILITIES AND PROBLEMS IN
CALIFORNIA.
BUT BEGIN BY ACCEPTING THE
PROPOSED AMENDMENTS OF THE
COMMITTEE.
THESE WOULD HAVE THE INVESTMENT
OPTIONS PROVIDED IN PARALLEL
WITH THOSE OF CALIFORNIA
EMPLOYEES RETIREMENT BENEFITS
TRUST TO WE'RE. VERY PURSUE.
THIS GIVES SEA HAVE THIS BILL
GUEST CALPERS THE AUTHORITY TO
ESTABLISH ONE FIFTEEN TRUST
THROUGH WHICH ELIGIBLE
CALIFORNIA PUBLICATION SEE
EMPLOYEES HERB IS COMPLETE FUND
THEIR FUTURE ANNUAL. PENSION.
OBLIGATIONS.
AND AN ADDITIONAL OPTION FOR
EMPLOYERS TO PAY DOWN THERE
UNFUNDED LIABILITY TO A DEFINED
BENEFIT PLAN GIVING THEM SOME
REPS RESPONSIBLE OPTIONS.
BE PROACTIVE I WOULD SAY.
PRIVATE SECTOR PROVIDERS HAVE
DEVELOPED AT THE INTERNAL
REVENUE SERVICE CODE SECTION ONE
FIFTEEN YEAR VOCAL TRUST.
BUT PUBLIC AGENCIES THAT THEY
USE TO PRE FUND THEIR PENSION
COSTS.
AND HELP PRODUCE THE UNFUNDED
LIABILITIES.
THIS IS TRUST. PROVIDED IN
SENATE BILL FOURTEEN THIRTEEN
WOULD ALLOW SIMILAR CALPERS
EMPLOYERS RETIREE BENEFITS
TRUST.
CURRENTLY IS LIMITED.
THE P. FUNDING EMPLOYERS ANOTHER
POST EMPLOYMENT BENEFITS.
LIABILITIES BUT NOT.
FOR PENSIONS.
IBM AVID FUND BECAUSE THEY'RE
ALL OF THE SAID TONGUE TWISTING
HAS.
ACRONYMS AND THEN THE
DESCRIPTION OF THE WORD IT'S
IT'S KIND OF FUN WE HAVE SO MANY
OF THE. CURRENT MARKET TRENDS IN
THE RECENT CHANGES AND THE
GENERAL ACCOUNTING ACCEPTED
STANDARDS.
AND THEN THE MORLOCK MUST
UNDERSTAND WHAT THOSE ARE I CAN
ONLY ASSUME BY THE VIRTUE OF THE
WORD.
ACCEPTED STANDARDS.
BUT THEY THESE PENSIONS OR THE
STANDARDS HAVE RESULTED IN
DEMAND AMONG PUBLIC AGENCY
EMPLOYER COMMUNITY FOR CREATION
OF A TRUST FOR PRE FUNDING.
PENSION COSTS THAT ARE THEIR
OBLIGATION.
STRUCTURE AVAILABLE ON THE
PRIVATE MARKET.
THE COST OF THE PUBLICATIONS
USED THAT WOULD BE LOWER IF THE
TRUST WERE OFFERED BY CALPERS.
AND WOULD PROVIDE A MORE COST
EFFECTIVE USE OF OUR TAXPAYER
DOLLARS.
IT WOULD BUDGET NICK DRESS
SIGNIFICANT TOOL FOR PUBLIC
AGENCIES TING UTILIZED
IRRESPONSIBLY AND RESPONSIBLY
MANAGE THEIR PENSION
OBLIGATIONS.
DOES NOT HAVE ANY KNOWN.
OPPOSITION.
I THINK THIS MIGHT BE A SMALL
BUT NOT IN CONSEQUENCE BILL
CHIPPING AWAY. AND PROVIDING
ANOTHER OPTION. THAT I HAVE WITH
ME DILLON GIVENS CALIFORNIA
SPECIAL DISTRICTS ASSOCIATION.
WELCOME WITNESSES SUPPORT.
A CHAIR AND MEMBERS OF THE
COMMITTEE DELEGATE AS WITH
CALIFORNIA SPECIAL DISTRICTS
ASSOCIATION.
LIKE TO THINK AS THE SENATOR
FOR AUTHORING THE BILL.
COMMITTEE STAFF.
LABOR AND CALPERS FOR WORKING
WITH US ON.
CRAFTING THIS MEASURE.
AND TO INDICATE THAT WE WERE
COMMITTED TO CONTINUING TO WORK
WITH ALL STAKEHOLDERS TO ENSURE
THAT.
ANY CONCERNS WHO MAY BE MAY
EXIST WITH THE BILL.
WOULD BE ADDRESSED.
AND SO WHILE CURRENTLY THERE IS.
ONE FIFTEEN TRUST OPTIONS
AVAILABLE TO PUBLIC AGENCIES
THEY ARE ONLY AVAILABLE ON THE
PRIVATE MARKET.
ONE DOES NOT EXIST AT CALPERS
FOR.
REGULAR ANNUAL CONTRIBUTIONS
ONLY FROM.
AS THE SENATOR MENTIONED FOR
OUR OPAP.
LIABILITIES.
AND.
WHERE WHILE YOU'RE VERY AWARE OF
THE?
PENDING IN RATE INCREASES AT
CALPERS SIR RESULT OF.
MANY YEARS OF.
ECONOMIC DOWNTURN ACTUARIAL
ADJUSTMENTS OVER AS.
HE CALPERS WHO WE'VE BEEN
SEEKING IS PUBLIC AGENCIES TOOLS
TO HELP US PROACTIVELY ADDRESS.
THE CONCERNS WITH OUR. MAKING
PAYMENTS ARE PENSION
LIABILITIES.
AND THE PRE FUNDING TRUST WOULD
BE ESTABLISHING CALPERS UNDER
THIS ONE FIFTEEN TRUSTS WITH. I
HOPE THE STOOGES THAT.
THE FUNDS INVEST IN THE TRUST
COULD ONLY BE USED FOR PENSION
OBLIGATIONS.
THAT'S THAT'S.
INVESTED FUNDS CAN BE USED TO
OFFSET UNFUNDED LIABILITIES ARE
REPORTED UNDER GOD BE SIXTY
EIGHT.
AND MAY IMPROVE OUR AGENCIES
BOND RATINGS ADDITIONALLY
AGENCIES THAT UTILIZE THE TRUST
WILL BE ABLE TO DRAW ON FUNDS.
THEN I CAN TRANSFER TO OFFSET
THEIR ANNUAL PAYMENTS.
SO IN YEARS WHERE THERE WOULD
BE A RATE INCREASE.
AGENCY COULD PULL DOWN FUNDS.
FROM THE TRUST TO OFFSET THAT
THAT INCREASE IN REDUCE THEIR
THEIR GENERAL FUND PAYMENTS.
TO CALPERS.
FURTHERMORE THERE'S A DOWNTURN
IN THE ECONOMY MAJOR
INFRASTRUCTURE PROJECT OF THE
AID AGENCIES WORKING ON. OR
OTHER FOR SEEN.
FACTORS. A PUBLIC AGENCY CAN
DRAW THOSE TRUST FUNDS AGAIN TO
OFFSET THEIR GENERAL FUND
OBLIGATIONS.
SO WELL AS BE FOURTEEN THIRTEEN
ISN'T THE BE ALL END ALL
SOLUTION TO.
ADDRESSING OUR PUBLIC PENSION
LIABILITIES IT IS AN EFFECTIVE
TOOL FOR MANY OF OUR AGENCIES TO
USE.
AS.
WITH THE OPEC LIABILITIES IS
CURRENTLY OVER FIVE HUNDRED
PUBLIC AGENCIES ARE USING THAT
THAT PRE FUNDING MECHANISM AND
WE WOULD.
WE CAN AS SOON THAT WE WOULD
HAVE ROUGHLY THE SAME AMOUNT
THAT WOULD BE ABLE TO.
USE THIS PROGRAM TO DRESS THEIR
ACTUAL LIABILITIES AND FOR THOSE
REASONS I ASK FOR YOUR AYE VOTES
FOR THE BILL.
GOOD AFTERNOON MISTER CHAIRMAN
RESTORE THE JOBS OFTHE
CALIFORNIA STATE ASSOCIATION OF
pREASONS MY COLLEAGUE FROM THE
SPECIAL DISTRICTS SAID THIS IS A
TOOL IN THE TOOLBOX FOR COUNTY
PENSION OBLIGATIONS MEAGER DRIVE
OUT. AND KILL.
THANK YOU OTHER WITNESSES A
SUPPORT.
GOOD AFTERNOON CHAIR MEMBERS
DEREK CLINICS ON BEHALF THE
SMALL SCHOOL DISTRICTS
ASSOCIATION IN THE SCHOOL BOARDS
ASSOCIATION OF CALLA CALIFORNIA
ALSO IN SUPPORT.
CHAIRMAN SENATORS JERRY BROWN
AND.
I WAS WAITING COUSIN ACTUALLY
TWEENER UP OKAY WE APPRECIATE
THE CONCEPT IN THE EFFORT I
APPRECIATE THE WORK WITH THE
COMMITTEE STAFF ON THE
AMENDMENTS.
OUR CONCERN IS CALPERS NOT
GETTING INTO A BUSINESS THEY ARE
NOT.
FULLY.
DESIGNED FOR THE CURRENTLY HAVE
THOSE OPAP TRUSTS THAT ARE VERY
SIMILAR THESE ARE ESSENTIALLY
JUST SAVINGS ACCOUNTS THERE'S NO
ACTUARIAL CALCULATION. THERE'S
JUST SEPARATE A ASSET CLASS.
CHOICES.
WE WANNA MAKE SURE THESE ARE%
RESTRICTED TO THE SAME ASSET
CLASS CHOICES AND SAYING RISK
PROFILES. THAT CURRENTLY EXIST
SO WE'RE NOT REINVENTING THE
WHEEL JUST FOR THE ONE FIFTEEN
TRUST THANK YOU.
CONNECTION LECTURE I DON'T KNOW
WHO YOU ARE.
NAME AND ORGANIZATION HAVE A
RECORD OF PERFORMS FORGET TERRY
BRENDA BEHALF S. YEAH CALIFORNIA
THANK YOU. THANK YOU.
OKAY ANY OTHER WITNESSES AND
SUPPORT HURT WIENERS OKAY
WITNESSES IN OPPOSITION.
PRICING NINE QUESTIONS FROM
COMMITTEE MEMBERS.
THURMOND LIKE.
THANK THANK YOU MISTER CHAIR.
.
MISTER GIVENS ONLY.
ARE YOU MENTIONED THAT THERE
WERE NO OTHER OPTIONS EXCEPT FOR
ONE.
IT'S YOURS OR SOME KIND OF FIRM
OR A COMPANY THAT'S PROVIDING
THESE ONE FIFTEEN TRUSTS.
YES SIR ISN'T THERE ARE OPTIONS
ONE FIFTEEN TRUSTS ARE AVAILABLE
IN THE PRIVATE MARKET AND PUBLIC
AGENCIES ARE USING THEM.
HOWEVER WE BELIEVE THAT WITH
CALPERS IF THEY WERE TO BE
RUNNING A ONE FIFTEEN TRUST THEY
COULD.
REDUCE THE.
FEES THAT MIGHT BE ASSOCIATED
WITH THAT AS OR NOT NOT FOR
PROFIT A STATE AGENCY SERVE LIKE
THE ECONOMIES OF SCALE CORRECT
WHO WITH THE FUNDS BE INVESTED
JUST LIKE.
OTHER FUNDS WHICH WOULD THEY
JUST BE IN THE PORTFOLIO SO IT
WOULD B SIMILAR TO THE.
AS AS.
DEAR BETTER WITH THAT YEAH YOU
MENTIONED THE THE WAY THAT THE
SERVER IS.
ALLOCATED THEREFORE ASSET
CLASSES.
IN AGENCY CAN DETERMINE WHICH
LEVEL OF RISK THEY WANT TO TAKE
WITHIN THAT WOULD THAT AND.
INVEST THEIR FUNDS WITHIN ONE
OF THOSE FOR ASSET CLASSES.
WITH VARYING LEVELS OF RISK.
SO THE CITY DECIDES
ALL BONDS ARE ALL STOCK OR
SOMETHING HAS SAID IT WAS
CLEARLY ASSET CLASS THREE AND
WE'RE WE'RE GOING TO.
PUT FIFTY PERCENT OF OUR FUNDS
IN THERE MAYBE MAYBE THEY GO
FIFTY PERCENT THERE TWENTY
PERCENT AND AN ASSET CLASS ONE
BLANDON THAT THEY COMPLETED IT'S
THE IT'S THEIR MONEY THAT GOES
INTO THE TRUST AND ANY OF THE.
INTERESTS THAT IS IN THERE IS
THERE MONEY THAT CAN ONLY BE
USED FOR PENSION OBLIGATIONS.
OKAY AND SO HAVE YOU.
DISCUSS WITH CALPERS WHETHER OR
NOT. THEY WOULD BE WILLING TO
GIVE SOME KIND OF INCENTIVE TO
JUST MAKE UP PREPAYMENT PERIOD.
AS OPPOSED TO. SENDING THE
FUNDS.
THERE.
WE'VE FOR FUTURE PAYMENTS.
I HAVE NOT HAD THAT DISCUSSION
WITH CALPERS TO ONE OF THE
BENEFITS OF THE ONE FIFTEEN
TRUST IS THAT IT DOES. ALLOW THE
ABILITY FOR A PUBLIC AGENCY TO
BETTER MANAGE THEIR FUNDS.
AND PLAN FOR THE FUTURE WHERE.
THEY THEY HAVE UNFUNDED
LIABILITIES IN THIS ONE FIFTEEN
TRUST COULD BE APPLIED TO THOSE
THEY HAVE THEY CAN MAKE.
EARLY PAYMENTS ON THE ACCRUED
LIABILITIES.
AND AND THEY'RE ABLE TO DO THAT
THEY'RE CURRENTLY ISN'T A
MECHANISM TO.
SEND A CHECK TO CALPERS BOOK
FOR A BILL IS DUE.
BUT IT IT'S OF THIS THIS WOULD
REALLY JUST HELP THEM AND. AND
PLANNING FOR THE FUTURE AND
SMOOTH OUT THEIR THEIR ANNUAL
PAYMENTS IF THAT'S WHY THEY
CHOOSE TO DO IT. THANK YOU
PROBABLY.
OKAY IT'S BEEN MOVED BY CELLMARK
OTHER QUESTIONS FOR COMMITTEE
MEMBERS.
RIGHT.
SO IT SENATORS AND I THANK YOU
FOR BRINGING THIS BILL FORWARD
AND ALSO TAKING THE COMMITTEE
MINUTES WORKING ON THE COMMITTEE
ON THIS AND.
ALSO WHICH LIKE CLOTHES YES YOU
MISTER WE'VE WE HAVE AND WILL
CONTINUE TO WORK WITH OTHER.
LIKE IT'S BRENNAN THAT SHE AYE
USES FOR SCENES THAT I BELIEVE
THAT THERE'S AN ACCEPTABLE. PATH
TO THE TO THE FORE AND I JUST
THINK IF YOU SEE ANOTHER OPTION
THE VERY POSITIVE OPTION.
TO GIVE SPECIAL DISTRICTS FOR
EXAMPLE AND I COULD SAVE CORRUPT
LET NINETEEN DIFFERENT COUNTIES
OVER THE YEARS THAT I REPRESENT
MORE SPECIAL. THAN ANYBODY
THEY DO HAVE A NEED THERE WILL
OTHERS WHO WOULD BENEFIT FROM
THIS. BUT WE'D LIKE TO SEE THIS
PROCEED AND THANK YOU FOR YOUR
CONSIDERATION.
ALRIGHT THANKS VERY MUCH US IN
THEM RECOMMENDING SUPPORT SO THE
SPIN MOVES BY SENATOR MORE LOCK
IN THE MOTION IS TO PASS AS
AMENDED AND REFERRED TO SENATE
APPROPRIATIONS SECTOR PLEASE
CALL THE ROLL. PAN HIGH PAN AYE
MORRELL LEYVA I BELIEVE I
MORLOCK. MORE LIKE AYE
PORTANTINO AYE PORTANTINO AYE
OKAY THAT THOSE AT FOUR ZERO
THANK YOU MEMBERS. THANK YOU.
ALRIGHT.
I THINK.
CENTER SKINNER IS NOT HERE.
BY SEE SENATOR DODD IT OUT.
WELCOME.
SO WE'RE GOING TO BE BRINGING UP
THIS IS ITEM NUMBER SIX SP
ELEVEN FORTY FOUR SENATOR DODD.
THANK YOU MISTER CHAIRMAN AND
MEMBERS LAST YEAR. I INTRODUCED
S. B. THREE THREE FOUR WHICH
PASSED THE LEGISLATURE
UNANIMOUSLY AND WAS SIGNED BY
THE GOVERNOR.
IT EXTENDED ENHANCE INDUSTRIAL
DISABILITY LEAVE E. IDEA HOW TO
CAL FIRE FIREFIGHTERS INJURED ON
THE JOB INCLUDING DURING
TRAINING.
S. B. ELEVEN FORTY FOUR IS A
CLEANUP BILL TO THAT
LEGISLATION.
THIS BILL THAT EXTENDS ANY
SALARY INCREASES GIVEN ACT OF
FIREFIGHTERS FOR THOSE ON E.
IDEA HOW. THIS EXTENSION OF
SALARY INCREASES TO THOSE ON EID
AL IS NOT UNPRECEDENTED UNDER
CALIFORNIA LAW IN FACT LOCAL
FIREFIGHTERS LOCAL POLICE. THE
CALIFORNIA HIGHWAY PATROL AND
OTHER STATE AGENCIES.
ALREADY HAVE THIS.
AFTER THE DEVASTATING FIRES MY
DISTRICT LAST YEAR I'VE SEEN
FIRST HAND THE AMAZING HARD WORK
FIREFIGHTERS DO. THIS BILL IS
ANOTHER IMPORTANT STEP
TO GIVE THEM SOME PARITY WITH
OTHER LAW ENFORCEMENT AGENCIES
AND FIREFIGHTERS.
SB ELEVEN FORTY FOUR IS NO
OPPOSITION IS SPELT SPONSORED BY
CAL FIRE LOCAL TO EIGHT EIGHT
ONE WITH ME TODAY IN SUPPORT.
IS.
ERA READ RESPECT CLASSROOMS.
THANK YOU WITNESSES SPORTS
FIGURES CHAIRMAN MEMBERS AND
READ REPRESENTING CAL FIRE LOCAL
TWENTY EIGHT EIGHTY ONE.
WITH THE SPONSORS IT'S A CLEAN
UP BILL. INADVERTENT ERROR THAT
IF YOU'RE ON A DISABILITY LEAVE
AND THEN THE OTHER ACTIVES GETA
AB AN INCREASE IN THEIR PAY THAT
HAD BEEN PREVIOUSLY NEGOTIATED
THEY DON'T GET IT THIS IS FIXES
THAT.
THANK YOU OTHER WITH THIS IS A
SUPPORT.
IN A WITNESSES OPPOSITION.
OKAY COMMITTEE MEMBER QUESTIONS.
OKAY SENATOR MORE LOCKED HER
ABOUT CERTAINLY BUT I DON'T.
COME THROUGH DODD YOU KNOW WHEN
WINNER WHEN SOME OF THOSE ON.
STABILITY AND AND FOR FOR AN
INCIDENT AND YOU KNOW THE RETURN
RATE. I DID DO.
DID A HUNDRED PERCENT COME BACK
NINETY PERCENT EIGHTY PERCENT. I
DON'T KNOW THAT'S MY MY OF WHAT
YOUR STUFF. IT'S A VERY HIGH
PERCENTAGE OF RETURNS AND THE
FIREFIGHTERS GETTING WILDLAND
FIREFIGHTER THAT ONE OF TE MOST
DANGEROUS THERE IS.
THEY HAVE LOTS OF INJURIES BUT
BUT THEY WANT TO GET BACK TO
WORK AS FAST AS THEY CAN BECAUSE
THEY THEY GONNA FIRE THEY'RE OUT
FOR A MONTH AT A TIME. THEY DO
MAKE A LOT OF EXTRA MONEY WITH
OVERTIME BECAUSE WE'RE SO SHORT
STAFFED FOR ALL THE SHORT
STAFFED.
SO THEM THEY GET A LOT OF MONEY
ON OVERTIME SO THEY MY
EXPERIENCE AND I'VE BEEN DOING
IT FOR FORTY YEARS REPRESENTING
THE SCRIPT FOR FORTY YEARS THIS
YEAR.
IS THEY WANT TO GET BACK TO
WORK AS FAST AS THEY CAN. AND TO
MY KNOWLEDGE I THEY OFTEN GO
BACK AND THEY SHOULDN'T.
SOMETIMES YOU'RE JUST NOT FULLY
READY BUT YOU KNOW THEY SAID I
CAN TAKE IT BACK AND GET IT BACK
THEY REALLY HAVE A CAN DO
SPIRIT.
I'D SAY THE PERCENTAGE IS VERY
HIGH I DON'T KNOW THE EXACT
PERCENTAGE BE HAPPY TO ASK THE
DEPARTMENT FOR THAT. OF THE
COULD PROBABLY GIVE YOU THE
EXACT. PERCENTAGE BUT I THINK IS
VERY HIGH.
MEXICANS ARE JUST WONDERING
INSTEAD OF.
GIVING THE REYES AND THEN THEY
DON'T COME BACK.
THAT THEY GET THE REYES IF THEY
DO COME BACK.
WELL I JUST RESPOND THAT I I
GUESS I'VE I FEEL VERY STRONGLY
IF YOU HAVE HARD WORKING
FIREFIGHTERS AND THEY GET
INJURED ON THE JOB.
AND THEY'VE CONTRACTED WITH BIKE
THROUGH COLLECTIVE BARGAINING OR
HELP WHATEVER METHOD.
THAT THEIR DO THAT.
YA THAT REYES IF THEY NEVER
COME BACK.
YEAH THAT'S PERHAPS THE A BASIS
FOR FUTURE.
YOUR DISABILITY OR SOMETHING OF
THAT NATURE BUT I THINK IT IT'S
SEEMS TO ME. THAT'S FAIR AND
IT'S ALSO IN PARITY WITH WHAT
OTHER STATE AGENCIES SOBRE STATE
AGENCIES AND LOCAL AGENCIES ARE
GETTING AT THIS TIME.
WELL THEN THEY WOULD GET IT
WOULD JUST BE RETROACTIVE.
I'M NOT SAYING THEY SHOULDN'T
GET IT THAT'S THAT'S WHY I WAS
ASKING THANK YOU MISTER CHAIR.
AND THE QUESTIONS ME MEMBERS.
OKAY A SILENT THANK YOU SO MUCH
FOR BRINGING THIS BILL FORWARD
AND I THINK I SAID SOMETHING
THAT WE'D FIX AND US IN
RECOMMENDING A SUPPORT ON THIS.
THAT'S BEEN MOVED BY CENTER
LEYVA.
I WOULD LIKE TO CLOSE
RESPECTFULLY ASK GRAB. OKAY
THANK YOU CENTER DOT SO THE
MOTION.
OKAY SO THIS IS A MOTIONS TO
PASS.
AND REFERRED JUST
APPROPRIATIONS COMMITTEES BEEN
MOVED BY SARAH LABOR SECRETARY
PLEASE CALL THE ROLL PAN HIGH
THEN I MORRELL LEYVA AYE LIVER
AYE MORLOCK.
PORTANTINO AYE PORTANTINO AYE.
OKAY THAT BILLS OUT THREE ZERO
IF YOU EXTRA MY ANSWERS AND I
SEE CENTER SKINNER HERE SO NEXT
ITEM UP.
WILL BE ITEM NUMBER FOUR SP TEN
EIGHTY FIVE BY SENATOR SKINNER.
WELCOME.
GOOD AFTERNOON NO CHAIR AND
MEMBERS OF THE COMMITTEE. SP TEN
EIGHTY FIVE RECOGNIZES THAT
EMPLOYEES WHO ARE STEWARDS FOR
THEIR UNION OR HAVE ANOTHER ROLE
LIKE THAT SOMETIMES NEED TO TAKE
TIME OFF FROM THEIR REGULAR JOB
DUTIES TO PERFORM THEIR UNION
RESPONSIBILITY.
SO TO PROTECT THAT EMPLOYEES JOB
PUBLIC SECTOR UNIONS NEGOTIATE
LOST TIME ARRANGEMENTS AND UNDER
THAT ARRANGEMENT. THE UNION
ITSELF COVERS THE COST OF THE
EMPLOYEES THEY PAY BACK THE
EMPLOYER FOR THE WAGES AND
BENEFITS AND THE EMPLOYERS ABLE
TO BRING IN A TEMPORARY WORKER
TO COVER. THE JOB DUTIES.
NOW UNFORTUNATELY SOMETIMES
EMPLOYERS AREN'T WILLING TO
NEGOTIATE THAT LOST TIME EVEN
THOUGH THE UNION IS PAYING ALL
THE COST COVERING ALL THE COSTS.
SO SB TEN EIGHTY FIVE SOLVES
THAT PROBLEM BY REQUIRING PUBLIC
EMPLOYERS TO GRAN LEVON OUT OF
ABSENCE FOR THE EMPLOYEE TO DO
THEIR UNION BIZ THEIR WORK.
WITHOUT LOSS OF COMPENSATION
BENEFITS AND MAKES CLEAR THAT
THE UNION COVERS ALL OF THE
EMPLOYEES COSTS.
AND ALLOWS THE LEAVE OF ABSENCE
TO BE FULL TIME OR PART TIME.
AND GIVES THE EMPLOYEE THE RIGHT
OF REINSTATEMENT.
SO THAT'S THE YEAR THAT'S WHAT
THE BLL DEBTS AND I HAVE.
MITCHELL CASTRO WITH ME TO.
TEST FIND SUPPORT MICHELLE CAST
MICHELLE CAST OF THE SERVICE
EMPLOYEES INTERNATIONAL UNION ON
THIS BILL BUILDS OFF OF THE LAW
THAT WAS ENACTED IN NINETEEN
EIGHTY SEVEN THE PROVIDE SCHOOL
COMMUNITY COLLEGES THE SLEEVES
OF ABSENCES. CIVILLY WHAT WE'RE
DOING HERE IS JUST FINALLY
PUTTING THESE EMPLOY OTHER
PUBLIC EMPLOYEES ON PAR WITH
THEM A PROVIDING THEM EQUAL
TREATMENT. AS SENATOR SKINNER
SAID TO SIMPLY PROVIDES A
REASONABLE.
AMOUNT OF TIME OFF AND
EVERYTHING ELSE IS SUBJECT TO
BARGAINING SO THAT EMPLOYERS AND
EMPLOYEES CAN MEET THE UNIQUE
CIRCUMSTANCES OF THEIR OWN.
SITUATION THEIR OWN COUNTY ON
THE BILL IS CONSISTENT WITH
CURRENT LAW POLICIES AND
PRACTICES AND WE ASK FOR YOUR
VOTE THANK YOU.
THANK YOU OTHER WITNESSES IN
SUPPORT.
THE CABINET MEMBERS GUYS THE
PLEASURE OF HIS COMPANY
SCHOOLBOYS APPRECIATION OFFER.
ANYTHING RECENTLY.
MISTER CHAIRMAN FOUNDER SOFT
RUMBLE HERE ON BEHALF OF THE
CALIFORNIA TEACHERS
ASSOCIATION FINGERS.
WE SANTA SLEEPERS LOCAL PARK
MAINTENANCE SUPPORT PULSE ON
BEHALF OF KAREN KISSED WORKERS
UNABLE TO BE HERE LOS ANGELES
COUNTY PROFESSIONAL PEACE
OFFICERS ORGANIZATION OF SMART
EMPLOYEES SAN DIEGO KEPT COR
EMPLOYEES ASSOCIATION. AND
UNITED PUBLIC EMPLOYEES. THANK
YOU.
WHAT'S YOUR MEMBERS KOBE BECAUSE
IT WITH CALIFORNIA ASSOCIATION
OF PSYCHIATRIC TECHNICIANS AND
SUPPORT.
KEEP.
SECURE MEMBERS PET RIGHT THERE
AND READING ASSOCIATE
REPRESENTING THE ORANGE COUNTY
EMPLOYEES ASSOCIATION IN SUPPORT
THANK YOU THANK YOU.
THANK YOU MISTER CHAIRMAN
MEMBERS TRISTEN BROWN OF THE
CALIFORNIA FEDERATION OF
TEACHERS HERE IN SUPPORT THANK
YOU YOU.
GOOD AFTERNOON MISTER CHAIRMAN
SENATORS TALKS WILL VOCAL WITH
THE AMERICAN FEDERATION OF STATE
COUNTY AND MUNICIPAL EMPLOYEES
AND SUPPORT THANK YOU.
GOOD AFTERNOON RANGE FROM WITH
THE RIVERSIDE SHERIFF'S
ASSOCIATION IN SPORT ADVOCATE.
MISTER CHAIRMAN MEMBERSHIP
GUSMAN ON BEHALF OF THE
TEAMSTERS HIM OUT OF MADE A
TRANSIT UNION THE MACHINIST AND
I AM PT LOCAL TWENTY ONE
EXPORT. THANK YOU.
THE CHAIRMAN MEMBERS KRISTIE
BELL ON BEHALF OF CALIFORNIA
PROFESSIONAL FIREFIGHTERS IN
SUPPORT.
OKAY.
WITNESSES OPPOSITION.
XENA QUESTION FOR COMMITTEE
MEMBERS US THERE LEYVA.
NO QUESTION I JUST WANNA THINK
THE AUTHOR FOR BRINGING THIS
BILL FORWARD.
WHEN I RAN MY LOCAL UNION FOR
TWELVE YEARS WE HAD THIS
PRACTICE IN OUR UNION OUR IN OUR
CONTRACT AND IT'S JUST A WIN WIN
FOR BOTH OF THE M. REMEMBER THE
EMPLOYEE AND THE EMPLOYER. THE
EMPLOYER USED TO TELL US THAT
WHEN THE.
MEMBER CAME BACK TO WORK THAT
THEY WERE EVEN BETTER THAN THEY
HAD BEEN BEFORE AND FROM A UNION
STANDPOINT THERE'S NOTHING
BETTER THAN HAVING SOMEONE WHO'S
ACTUALLY WORKING. TO OUT TALK TO
OTHER MEMBERS SO THANK YOU FOR
BRINGING THIS FORWARD I LOOK
FORWARD TO SUPPORTING IT WILL
MOVE IT WHEN APPROPRIATE.
THE OTHER QUESTIONS UPS ARE MORE
LIKE.
I'M.
CENTER SKINNER YOU SAID THAT THE
EMPLOYER PAYS FOR ALL THE COSTS
I JUST WANNA FEEL OF THE UNION
THE UNION CONTRACT REIMBURSES
THE EMPLOYER FOR ALL THE
BENEFITS AND THE WAIT FOR THAT
WOULD BE FOR THE EMPLOYEES. ERIC
WHAT ABOUT THE REPLACEMENT
EMPLOYEE THAT HAS TO FILL THE.
THE VACANCY DURING THE HOURS OR
DAYS OR WEEKS THAT THAT
EMPLOYEES WELL SINCE THE.
EMPLOYERS NOT FEARING ANY COST
DURING THE TIME THAT THE.
EMPLOYEE IS DOING THEIR YOU
KNOW RESPONSIBILITIES.
IF THE EMPLOYER OPS
TO USE A TEMPORARY WORKER THEY
COULD UTILIZE THE REIMBURSEMENT
THAT THE UNION IS. PROVIDING
THEM CONNECTS RECOVER YES RK AND
THEN.
HOW HOW DOES THE EMPLOYER?
I GUARANTEE THAT.
THE EMPLOYEE IS JUST FOCUSED ON.
BARGAINING IN AND IT BIG FIGHT
SCENE IT'S THE SAYS.
WORD THERE'S JUST A SMALL AMOUNT
OF WORK TO BE DONE FOR THE DAY
IT'S HAD AN IMPASSE. BUT THE
EMPLOYED TAKES THE WHOLE DAY OFF
AND I'M JUST WONDERING HOW DOES.
WHEN IT COULD TAKE LIKE AN HOUR
GAUDY AND WHAT KIND OF SOUL INTO
MORE WHAT KIND OF. TOOLS DOESN'T
EMPLOYER HAVE TO SAY I WANT TO.
PAY YOU DON'T NEED THE
REIMBURSEMENT FOR THE OLD THAT
LIKE TO HAVE YEAR.
SO WHAT WHAT THEY DO IS USUALLY
IT'S A UNION OFFICER OR A
STEWARD AND IT'S ACTUALLY. A
LEAVE OF ABSENCE SO COULD BE
LEAVE OF ABSENCE FOR A WEEK
COULD BELIEVE ABSENCE FOR TWO
WEEKS.
SO DURING THAT TIME TO PRETTY
MUCH OUT FOR YOU KNOW FOR THE
FULL DURATION SOMETIMES IT EVEN
BE A DAY JUST DEPENDS ON WHAT
THEY'VE AGREED UPON.
OKAY.
THANK YOU THANK YOU MISTER.
YES SECOND CURLY AND I WOULD
JUST SAY SENATOR MORLOCK I'M IN
MY EXPERIENCE BUT THROUGH THE
CHAIR SORRY.
IN MY EXPERIENCE WHEN WE RARELY
HAD WE ACTUALLY NEVER HAD THAT
EXPERIENCE THAT YOU REFER TO USE
IT WITH THE OPPOSITE WE'RE
TRYING TO KEEP THEM WITHIN AN
EIGHT HOUR DAY BECAUSE THERE WAS
SO MUCH WORK TO BE DONE. AND IT
TO YOUR FIRST QUESTION OF THE
AUTHOR.
MOST THE TIME THAT ONE WAS
REPLACED WHEN YOU PULL SOMEONE
OUT THE PLAYER HAS TO AGREE TO
THAT SO IF THEY THINK THAT THEIR
WORK CAN'T RECOVER THEY WON'T
RELEASE THAT PERSON TO GO.
SO THEN THROUGH THE.
THROUGH THE CHAIR OPEN. WHO
WEARS THE RESISTANCE COULD YOU
EXPLAIN?
WHY THERE'S RESISTANCE?
SOMETIMES EMPLOYERS.
ARE CONCERNED ABOUT BEING
IDENTIFIED SO WE'VE INCLUDED
INDEMNIFICATION THE BILL SO
ANYTHING HAPPENS WILL EMPLOYEES
OUT ON THE LEAVE. THE EMPLOYER
IS NOT HELD LIABLE UNDER HELD
HARMLESS SO THAT'S BEEN THE
PRIMARY CONCERN. WE'VE
ENCOUNTERED.
THANK YOU.
ALRIGHT WELL I WANT TO THANK YOU
SO MUCH US ARE GOOD FOR BRINGING
THIS BILL FORWARD I WOULD POINT
OUT THAT IN TERMS OF ANYONE
SLACKING OFF IT'S ACTUALLY THE
UNION THAT'S PAYING HAS SO
THEY'LL BE ON THE HOOK FOR THAT
ANYWAY SO I'M SURE THAT.
THEY WERE YOU KNOW BE SURE THAT
THE PERSON OR PULLING OUT HIS.
KEEPING VERY BUSY. DOING THEIR
UNION REPRESENTATION WORK.
BUT AGAIN I HAVE YOU TO SUPPORT
THE BILL.
IT'S BEEN MOVED BY SENATOR
LEYVA AND THE MOTION IS TO PASS
BUT REFER TO A SEPARATE BRIDGES
AS YOU WISH TO CLOSE. THANK YOU
I'M CHAIR I THINK WE COVERED IT
AND I APPRECIATE.
.
OUR COLLEAGUES QUESTION BECAUSE
IT ALLOWED THE INDEMNIFICATION
PART COME OUT WHICH I'D AILED
TO STATE MY OPENING SO I ASK
YOUR AYE VOTE.
OKAY THANK YOU SEE AGAIN THE
MOTION IS TO PASS REFER TO SET
APPROPRIATIONS COMMITTEE ACEKARD
PLEASE CALL THE ROLL. PAN BY
PENN AYE MORRELL LEYVA AYE LEAVE
I'D MORE LOCK.
PORTANTINO AYE PORTANTINO AYE.
THAT BUILDS UP THREE ZERO THANKS
VERY MUCH THANK YOU.
OKAY.
SEEING NO OTHER NINE COMMITTEE
AUTHORS AT THAT POINT.
SO.
THERMAL LIKE NOW YOU ARE FIRST
ON THE LIST YOU HAVE SEVERAL
BILLS THAT YOU WANT TO GO FIRST
OR SHOULD WE HAVE SEEN OUR LEYVA
WHO HAS JUST ONE DEL THE PRESENT
STEVEN. CARTER LEYVA ALRIGHT.
OKAY FOR OKAY WE'LL SEE A CENTER
GLAZER SHOWS UP BUT HE DOESN'T.
CONSIDER GOING THROUGH YOUR
BILLS TO
OKAY SO LET'S MOVE ON TO ITEM
NUMBER FIVE SP ELEVEN TWENTY
FOUR BY CENTER LEYVA.
THANK YOU MISTER CHAIR THINKING
MEMBERS.
CHRISTY.
GOOD AFTERNOON S. B. ELEVEN
TWENTY FOR PROTECTS THE
RETIREMENT SECURITY OF CALPERS
MEMBERS BY ENSURING THAT ANY
AGREED UPON COLLECTIVELY BARGAIN
COMPENSATION. THAT COUNTS TOWARD
RETIREMENT CANNOT BE ASKED TO BE
PAID BACK BECAUSE OF INCORRECTLY
REPORTED INFORMATION. THAT'S
MAJOR RESPONSE TO INCIDENTS
WHERE EMPLOYEES RETIREMENT
INFORMATION HAS BEEN INCORRECTLY
REPORTED TO CALPERS BY THEIR
EMPLOYER. IN THESE CASES THE
RETIRED MEMBERS ARE ASKED TO PAY
MONEY BACK TO THE RETIREMENT
SYSTEM AND TAKE A PERMANENT CUT
TO THE MONTHLY RETIREMENT.
RETIREES PLAN AND RELY ON A
FIXED INCOME AND SHOULD NOT BE
FORCED TO TAKE UNPREDICTABLE AND
UNFAIR CUTS
FOR EXAMPLE AFTER BRIEFLY
SERVING THE PUBLIC FOR NEARLY
THIRTY YEARS. A FIREFIGHTER
EMPLOYED BY CALPERS CONTRACTING
AGENCY DECIDED TO RETIRE.
NEARLY FIVE YEARS AFTER
RETIREMENT CALPERS NOTIFY THE
RETIRED FIREFIGHTER THAT HER
EMPLOYER HAD REPORTED INCORRECT
COMPENSATION NUMBERS. CALPERS
THEN DETERMINE THAT THE
FIREFIGHTER NOT ONLY OD LUMP SUM
OF FORTY TWO THOUSAND DOLLARS.
BUT WOULD ALSO BE FORCED TO TAKE
A SIGNIFICANT REDUCTION IN HER
MONTHLY RETIREMENT CHECK. THIS
IS ONE OF SEVERAL EXAMPLES THAT
HAVE COME TO LIGHT THAT
DEMONSTRATES THE NEED FOR THIS
BILL. SP ELEVEN TWENTY FOUR STEP
WISHES FAIR PRODUCT PROCEDURES
FOR ALL CALPERS RETIREES IN
CASES WHERE THEIR BENEFITS ARE
INCORRECTLY CALCULATED. I
REPORTED TO CALPERS BY THEIR
EMPLOYER. THE BILL ALSO SETS
FORTH PARAMETERS FOR RESOLVING
FUTURE ISSUES IN THE CASE OF
INCORRECTLY REPORTED
INFORMATION.
WITH ME TO SPEAK IN SUPPORT AS
CHRISTY BOUND UP WITH THE FOR
PROFESSIONAL FIREFIGHTERS THE
SPONSORS OF THE BILL
RESPECTFULLY ASK FOR AN AYE
VOTE.
I THINK KEY WITNESS SUPPORT.
MISTER CHAIRMAN MEMBERS OF THE
COMMITTEE CHRISTY BELMONT BE
HAVE THE CALIFORNIA PROFESSIONAL
FIREFIGHTERS.
A PLEASED TO BE SPONSORS OF THIS
MEASURE.
I AS THE AUTHOR AND SENATOR
MENTIONED WE HAVE MULTIPLE
FIREFIGHTERS HAVE COME FOR BUT
THIS PARTICULAR EXAMPLE. A WAS A
FIREFIGHTER WHO DEDICATED THIRTY
YEARS OF HER LIFE TO THE FIRE
SERVICE. A METER* AND
RETIREMENT CONTRIBUTIONS AS
IDENTIFIED BY HER EMPLOYER AND
CALPERS. BASED ON A COLLECTIVELY
BARGAINED.
ABOUT OF COMPENSATION THAT WAS
PENSIONABLE. SHE EVEN WENT SO
FAR AS TO REQUEST A PRE
RETIREMENT CONSULTATION WITH THE
PURSE COMMITTEE. THAT WHO THEN
ARABS ARE THE THE PERSISTENT WHO
TOLD HER WHAT HER BENEFIT WOULD
BE IN RETIREMENT. BUT ONLY TO BE
SURPRISED FIVE YEARS POST HER
RETIREMENT. THAT THE EMPLOYER
HAD REPORTED PAY ITEM THE
CALPERS SUBSEQUENTLY DISALLOWED.
AND THEY JUST REQUESTED FROM
THIS RETIREE THAT THEY GIVE
BUT SHE MAIL A CHECK OF A
SUBSTANTIAL AMOUNT TO PAY BACK
ALL OF THE. RETIREMENT ALLOWANCE
IT SHE RECEIVED OVER THE
PREVIOUS FIVE YEARS THAT THEY
WOULD PERMANENTLY REDUCED
RETIREMENT ALLOWANCE FOR THE
REST OF HER LIFE.
BUT WE THINK THIS IS A REALLY
FAIR BILL.
INTHAT IT ONLY REQUIRES PAYMENT
TO THE RETIREE FOR A PROMISED.
PROMISED AND PAID FOR BENEFIT A
COUPLE DETAILS I JUST WANT TO
HIGHLIGHT THAT THIS BILL. DOES
OBLIGATE THE EMPLOYER TO MAKE UP
THE DIFFERENCE IS NOT A COSTS
THAT WILL BE SOCIALIZED ACROSS
THE SYSTEM.
THE EMPLOYER BARGAIN FOR THE
EMPLOYER WILL PAY FOR IT OF
CALPERS DETERMINES THAT SOMEHOW
IN THE CONTRIBUTION AMOUNTS TO
CALPERS WAS DEMANDING PREVIOUSLY
DID NOT ADEQUATELY. COVER THAT
INCREASED AMOUNT THAT IS THE
EMPLOYER'S OBLIGATION I THINK
THAT'S AN IMPORTANT POINT. A BUT
ALSO THEN THIS BILL. OF CREATES
A PROCESS WHEREBY GOING FORWARD
AND FUTURE MO USE THAT THERE IS
A WAY FOR EMPLOYERS TO PROTECT
THEMSELVES AGAINST THE.
LIABILITY IN THAT IS TO CHECK
OFF ON THE FRONT AND WITH
CALPERS THAT IF THEY'VE
BARGAINED FOR A BENEFIT.
THAT IS ALLEGED TO BE COMPOSED
COMPENSABLE THE CALPERS AND THE
EMPLOYER CAN AGREE THAT IN FACT
THAT IS SO AND IN THAT CASE.
BEEN THE EMPLOYER IS REAP IS
PROTECTED FROM HAVING TO PAY
BACK ANY SUBSEQUENT OVER
PAYMENTS AND THE RETIREE OF
COURSE WOULD NOT BE ABLE TO MAKE
THE SAME CLAIM.
PROMISED AND PAID FOR BENEFIT TO
PROTECT RETIREES WHO DO
NOT-RECEIVE SOCIAL SECURITY WE
ASK
FOR YOUR SUPPORT.
THANK YOU.
OTHER WITNESSES A SUPPORT.
MISTER CHAIRMAN MEMBERS AARON
READ REPRESENTING. A PEACE
OFFICERS RESEARCH ASSOCIATION OF
CALIFORNIA POOR ACT AND CAL FIRE
LOCAL TWENTY EIGHT EIGHTY ONE IN
SUPPORT.
THANK YOU.
LIBBY SANTA'S LABOR'S LOCAL
SEVEN NINE TWO ALSO ON BEHALF OF
CARING KIESLER ORGANIZATION OF
* EMPLOYEES PICK PICK YOU.
RANCHER WITH THE RIVERSIDE
SHERIFF'S ASSOCIATION SUPPORT.
THANK YOU.
ALRIGHT.
I ANY WITNESSES IN OPPOSITION.
I SAY NONE QUESTIONS REMEMBERS.
SEVERAL.
I WAS HAVING SOME DIFFICULTY
WITH THE CODE SECTION BUT IT AND
APPARENTLY SAYS THAT.
IT'S THREE YEARS. A STATUTE BUT
IT'S THREE YEARS AFTER PAYMENT
NOT NECESSARILY A MISTAKE SO.
SO I'M ASSUMING THAT THIS
FIREFIGHTER ACTUALLY HAD A PAPER
THREE YEARS WORTH OF.
.
OVERPAYMENTS NOT FIVE THE OTHER
IN THAT CASE THE EMPLOYER IN THE
SYSTEM AGREED TO COLLECT.
WHICH WAS FORTY FIVE THOUSAND
DOLLARS RATHER THAN THE FULL SIX
A FIVE YEAR AMOUNT. BUT THE
STATUTE ALSO ALLOWS APPEARS TO
MAKE A DETERMINATION ABOUT A
DIFFERENT STATURE LIMITATION.
FOR I AM TRYING TO APPRECIATE
YOUR TRYING TO DO WHAT'S FAIR.
SO HOW DO WE SO SO IT IT IS
THIS BULL BUILDING TRYING TO
FORCE.
EMPLOYERS TO PROVIDE BETTER
QUALITY CONTROL TO WORK WITH
CALPERS TO SAY OKAY. WE WANT TO
BE ABLE TO SIGN OFF ON THAT.
DOLLAR AMOUNT GIVES WITH THEIR
HR DEPARTMENT JUST TO MAKE SURE
BUT HE'S GOT IT RIGHT THE FIRST
TIME.
MISTAKES WILL HAPPEN AND IT'S
JUST IT'S JUST LIFE WHAT WE'RE
SAYING IS WE WANT TO MAKE SURE
THE PERSON WHO'S GIVEN ALL THE
GOOD YEARS OF THEIR LIFE TO THAT
JOB ARE THE ONES WHO HAVE TO PAY
FOR THE MISTAKE RIGHT. RIGHT.
SO THIS. OTHER CONCERN IS GOING
TO CALPERS AND HAVING THEM.
REVIEW THE MO USE WOULD THAT BE
LIKE UGH I CAN IRIS PRIVATE
LETTER RULING WORRIED. IF IF YOU
HAVE BARGAINED FOR SOMETHING
BEEN CALPERS COULD ISSUE A
NOTICE SAYING WE'VE AGREED TO
ACTS.
THAT WE DO NOT EVERY EMPLOYER
HAS TO GO TO CALPERS THEY COULD
JUST.
REVIEW THE LISTING OF RULINGS.
YEAH.
I SUPPOSE WE COULD DO THAT.
AND SEEMS LIKE IT WOULD BE A
LITTLE TIME SAVING OPPORTUNITY.
I THINK THIS PARTICULAR
FIREFIGHTER ACTUALLY TRIED TO DO
THAT BY GOING TO THEIR PRE
RETIREMENT CONSULTATION WHICH.
THE TRUST FUND I SAID ON WE
ALWAYS DID THAT WITH OUR MEMBERS
WE ARE GOING TO DO PRE
RETIREMENT CONSULTATION WITH AND
THEY HAVE TO THEY NEED TO BUILD
A PLAN THEIR LIFE IF YOU'RE WITH
THE GOING TO BE MAKING AS A
RETIREE.
THANK YOU MISTER THANK YOU
SENATOR.
WE. THING ANOTHER QUESTION SO I
I DID SO I THANK YOU FOR
BRINGING THIS BILL FORWARD I.
AYE I APPRECIATE BEYOND THAT
THAT THE SITUATION WHERE REALLY
THE RETIRE YOU DID EVERYTHING
THAT THEY COULD COULD BE
REASONABLY EXPECTED DUE TO DO
THEIR DUE DILIGENCE RIGHT AND SO
PEOPLE ARE MAKING LIFE DECISIONS
ABOUT AND I'VE PRAYED TO RETIRE
WHAT'S MY RETIREMENT HOW MY
SAVINGS IN THE LAST. YOU KNOW
THE YOU KNOW THROUGHOUT MY
REMAINING YEARS ETCETERA. AND
PEOPLE ARE BEING GIVEN
INFORMATION THAT'S INCORRECT.
THAT AND THIS AND THAT
SHOULDN'T BE ON THEIR BACKS TO I
HAVE TO MAKE UP FOR THAT
ESPECIALLY SINCE IT'S BUT I
THINK IT ALSO. THE TYPE OF
INFORMATION THEY WOULD NEED TO
KNOW IS NOT REALLY IN THEIR
HANDS EITHER RIGHT THE DETAILS
OF.
YOU KNOW USE THINGS LIKE THAT.
SO THEY CAN ONLY TRUST THAT
WHEN YOU GO ASK YOUR EMPLOYER
YOU GO ASK CALPERS WHO'S
ACTUALLY THE MINISTER. THAT THAT
PERSON KNOWS WHAT THEY'RE
TALKING ABOUT THE SO I THINK
THIS.
THE DEFINITELY ADDRESSES THIS
ISSUE AND ENSURES THAT THE
SYSTEMS IN PLACE TO HELP HEAL
THE RETIRING SYSTEM AND THE
PLAYERS ARE WORKING TOGETHER TO
BE SURE THERE'S ACCURATE
INFORMATION. AND THAT IF THE.
EMPLOYEE DID DEAR DUE DILIGENCE
STATION BE HELD HARMLESS OUT
FROM THAT SIDE OF SAFETY DONE
THEIR DUE REASONABLE DUE
DILIGENCE IN TRYING TO DETERMINE
THAT'S I CERTAINLY.
PLEASED TO SUPPORT THE BILL I
THINK ABOUT THERE'S A MOTION
FROM CENTER PORTANTINO.
AND SO.
THE MOTION IS.
DO IS TO PASS AND REFERRED
CENTER PROCREATION IS COMMITTEE.
SECRETARY PLEASE CALL THE ROLL.
KAREN. ONE CLOSE TIGHT RESPECT
US FROM ABOUT FIVE OKAY THANK
YOU ARE VERY SICK OF THESE CALL
THE ROLL PENS BY THEN I RURAL
LABOR. AYE LEYVA AYE MORLOCK.
I WOULD LIKE AYE PORTANTINO.
PORTANTINO AYE.
OKAY SETTLES OUT FOUR ZERO THANK
YOU. CARETAKING RIVERSIDE OKAY.
SEEN THAT THERE'S OTHER AUTHORS
THERMAL.
I THINK FOR WE GO AHEAD AND.
TO JUST TAKE THEM ORDER.
THAT'S FINE OKAY SO WE'LL START
OFF WITH ITEM NUMBER ONE S. B.
TEN THIRTY ONE.
SIR MORLOCK.
JOHNSON I HAD A LOOK.
THANK YOU MISTER CHAIR.
COLLEAGUES ARE.
RECENTLY I ATTENDED A A DINNER
AT THE OTHER WAS HOSTED BY THE
GOVERNOR AT THE MANSION BRENDA
HAD THE PRIVILEGE OF EXIT EXIT
AND GUESSED IT WAS A.
LOVELY EVENING.
.
AFTER PRESIDENT PRO TEM ATKINS
AND REPUBLICAN LEADER BATES
SHARED A FEW THOUGHTS THAT THE
GOVERNOR TURNED TO US AND WATCH
ALL GIVE A LITTLE. TALK AND THEN
HE GOT UP AND TALKED HIMSELF FOR
A LITTLE BIT AND HE WAS
CONCERNED ABOUT TIED TO.
BOMBS ON THE HORIZON THE PENSION
BOMB IN THE CLIMATE CHANGE BOMB
AND WE HAD.
QUITE INTERESTING A
CONVERSATION COLLEAGUES SAID
GOVERNOR BROWN IS CORRECT ON HIS
CONCERNS FOR PUBLIC. EMPLOYEE
PENSIONS AND I I APPLAUD HIM FOR
HIS EFFORTS.
IN REGARDS TO PEPPER.
IN JANUARY THE LEAGUE OF
CALIFORNIA CITIES RELEASED A
RETIREMENT SYSTEM SUSTAINABILITY
STUDY IN FINDINGS
THE THREE KEY KEY FINDINGSWERE
AS FOLLOWS ONE. CITY PENSION
COSTS WILL DRAMATICALLY INCREASE
THE UNSUSTAINABLE LEVELS.
TWO RISING PENSION COSTS WILL
REQUIRE CITIES TO NEARLY DOUBLE
THE PERCENTAGE OF THEIR GENERAL
FUND DOLLARS THEY PAY THE
CALPERS. AND THREE CITIES HAVE
FEW OPTIONS TO ADDRESS GROWING
PENSION LIABILITIES.
THE COLLEAGUES BOTH CALPERS AND
CAL STIRS ENJOYED A NICE TRUMP
BOB THIS LAST YEAR WITH THE
STOCK MARKET BUT IF THE STOCK
MARKET CONTINUES TO HOLD FLAT OR
DECLINE BEFORE JUNE THIRTIETH.
THE NUMBERS FOR THIS FISCAL YEAR
WILL NOT BE PRETTY.
CONSEQUENTLY THE LEGISLATURE
NEEDS TO GET IN FRONT OF THIS.
SUSTAINABILITY CONCERN AND SOON.
ONE CITY IN MY DISTRICT A
HUNTINGTON BEACH HAS REDUCED
STAFFING BY FIFTEEN PERCENT.
BUT IT'S CALPERS CONTRIBUTIONS
HAVE STILL GONE UP EIGHTY EIGHT
PERCENT.
MOST SAVVY UNION LEADERS KNOW
THAT IN ORDER TO PROTECT
RETIREMENT BENEFITS YOU HAVE TO
PROTECT THE EMPLOYER.
LAST FALL I REQUESTED ACTUARIAL
ASSISTANCE ON THE IMPACT OF A
MODIFICATION TO COST OF LIVING
ADJUSTMENTS FROM CALPERS.
PENNANT INSTEAD OF RESPONDING TO
MY LETTER THEY. WENT AHEAD AND
HAD A. OF FINANCING
ADMINISTRATIVE COMMITTEE EDGED
OUT MEETING AND HAD ON THEIR
AGENDA.
SOME DOZEN PLAN SPONSOR SHOWED
UP MANY CITIES CITY MANAGERS.
STARTED TO EXPLAIN WHAT MONTH
AND WHAT YEAR THEY BE OUT OF
CASH
BASED ON PROJECTIONS HOW MANY
HAVE ALREADY REDUCED THEIR.
POLICE DEPARTMENTS BY TWENTY
FIVE PERCENT THEIR FIRE
DEPARTMENTS FOR TWENTY FIVE
PERCENT. THAT PLEADED FOR AN
OPTION IN THEIR EMPLOYEE
NEGOTIATIONS TOOL BOX
FUNDING CURRENTLY HAS THREE
SOURCES THE EMPLOYER MAKES THE
CONTRIBUTIONS WHICH ARE RISING.
TO THE EMPLOYEE MAKES
CONTRIBUTIONS WHICH ARE ALSO
RISING AND THREE THE NET
INVESTMENT EARNINGS WHICH ARE
VOLATILE.
THIS THREE LEGGED STOOL COULD
USE AN ASSIST IF A PLAN SPONSORS
UNFUNDED ACTUARIAL ACCRUED
LIABILITY THE DIFFERENCE BETWEEN
ASSETS AND LIABILITIES. EXCEEDS
TWENTY PERCENT BEEN.
I BELIEVE COST OF LIVING
ADJUSTMENT SHOULD BE PUT ON
HOLD.
WHEN A PLAN IS LOSING GROUND
THAN ONE FAUCET THAT'S
DISTRIBUTING FUNDS OR INCREASING
THE LIABILITY. SHOULD BE
TEMPORARILY TURNED OFF.
EMPLOYERS ARE STEPPING UP UNTIL
THEY CAN'T.
EMPLOYEES ARE STEPPING UP AND
FUTURE RETIREES SHOULD ALSO BE A
LEG OF THE CHAIR TO ADDRESS.
FUNDING LEVEL CONCERNS IT'S
THEIR PENSION THAT THEY'RE
PROTECTING.
BY TAKING A TEMPORARY. PAUSE.
WHY I'M NOT HERE TO BE?
MEAN TO RETIREES BUT IN DETROIT.
CONTEMPT IT TO WATCH CHAPTER
NINE BANKRUPTCY PROCEEDINGS
ALLOWED IN CANADA HAVE AN
INTEREST IN THAT TOPIC.
BEATRIZ ROADS IN DEVELOPING THE
PLAN OF ADJUSTMENT FOR THE CITY
OF DETROIT. HAD THE RETIREES
TAKE REDUCTIONS IN THEIR
BENEFITS SO THEY ARE SUSCEPTIBLE
IN IT IN A FEDERAL COURT TO
HAVING THEIR RETIREMENT
BENEFITS.
IMPACTED THEY ARE VULNERABLE.
SO THEY SHOULD AS PART OF THE
TEAM GET IN FRONT OF UNFUNDED
PENSION PLAN BEFORE THEY FIND A
FEDERAL JUDGE MAKING MORE SEVERE
ADJUSTMENTS.
TO THE RETIREMENT BENEFITS SP
TEN THIRTY ONE APPLIES TO THOSE
RETIRING AFTER JANUARY ONE
TWENTY NINETEEN SO IT IS
PROSPECTIVE. PEPPER WAS ALSO
PERSPECTIVE AND MADE CHANGES
THAT DROVE. OVER MEET AND CONFER
CONCERNS SOME MINOR CHANGES
SHOULD BE PURSUED BY THE
LEGISLATURE AND PUT ON THE
GOVERNOR'S DESK FOR HIS
CONSIDERATION. BELIEVE
CALIFORNIA CITIES WANTS TO WAIT
FOR THE NEXT GOVERNOR. BUT I
THINK THAT STRATEGY COULD DELAY
REFORMS FOR YEARS. WE HAVE A
CHANCE NOW TO PLACE A SIMPLE
MODIFICATION BEFORE THE
LEGISLATURE WEREN'T HONEST
DISCUSSION ON THIS CRITICAL
SUBJECT SHOULD BE ENGAGED.
COLLEAGUES I RECENTLY RANKED
CITIES BY THEIR UNRESTRICTED NET
POSITIONS DIVIDED BY THEIR
POPULATIONS.
A CALIFORNIA CITIES A LOT OF
THEM HAVE PHYSICAL DISTRESS.
WE JUST REVIEWED CALIFORNIA'S
COMMITTEE COLLEGES OF THE
SEVENTY TWO DISTRICTS.
.
THEY'RE ALSO LOOKING.
PRETTY DISTRESSED IN FACT.
ARE OUT OF.
SEVEN TWO DISTRICTS ONE DOES
GLENDALE COMMUNITY COLLEGE
DISTRICT PLACE SIXTY NINE.
SO WE HAVE TO HAVE SOME REAL
CONCERN. BUT CUMULATIVELY OF ALL
JUST TO.
JUNIOR COLLEGES THERE UNFUNDED
LIABILITY WAS FIVE POINT FIVE
BILLION THAT IT INCLUDE THE TWO
AND A HALF BILLION OF AND.
BUDGET RETIREE MEDICAL CASA TAKE
BILLION DOLLARS ANOTHER BIG.
ISSUE THAT WE HAVE THE
LEGISLATURE HAVE TO FACE DOWN
THE ROAD.
COLLEAGUES ITS TIME FOR ALL PLAN
PARTICIPANTS TO PUT THEIR HANDS
ON THE ORDERS. TO ADDRESS
UNDERFUNDED PLANS THOSE THAT ARE
NOT FUNDED EIGHTY PERCENT OR
HIGHER I APPRECIATE YOUR
ATTENTION AND RESPECTFULLY
REQUEST AN AYE VOTE.
I THINK YOU WITNESSES SUPPORT.
THANK YOU MISTER CHAIR SARS
DIVERSE BEST BEST GREATER
REPRESENTING THE ASSOCIATION OF
CALIFORNIA CITIES FOR ORANGE
COUNTY. IT'S ALWAYS A PLEASURE
TO TESTIFY IN SUPPORT OF THE
CENTER FOR MORE LIKE BILL
BECAUSE HE LEADS SOME GREAT
TALKING POINTS GOVERNOR. BUT
NONETHELESS I'M GLAD TO BE HERE.
BECAUSE.
PENSION REFORM IS IS A TICKING
TIME BOMB EVER WINNING KNOWLEDGE
IS WHAT A PROBLEM IT IS AND
THERE ARE NO SIMPLE SOLUTIONS SO
SOONER OR LATER THE LEGISLATURE
IS GOING TO HAVE TO FIND
SOMETHING TO SAY YES TO. THOUGH
IT'S GOING TO BE DIFFICULT.
YOU BRING A BILL THAT'S
COMPREHENSIVE THAT TRIES TO HAVE
THE IMMEDIATE IMPACT OR TRY TO
ADDRESS THE PROBLEM IN THE SHORT
TERM AND IT TOO CONTROVERSIAL
BECAUSE THE IMPACTS TO
RECIPIENTS. SO SENATOR MORE LIKE
BRINGS A BILL WHICH MAKES A
SUBTLE CHANGE TO ONE ASPECT OF
IT DOESN'T ATTEMPT TO DO THE
ENTIRE PROBLEM ALL OF ONE'S.
AND IT TAKES EFFECT IN THE
FUTURE WHEN WE CAN PICK
ANTICIPATED EXPECTED MINUTES
CRITICIZED FOR BEING PREMATURE
OR NOT A COMPREHENSIVE SOLUTION.
SO IT DOESN'T TRY TO BE A FIX
ALL IT DOESN'T TRY TO SOLVE ALL
THE PROBLEMS IT TAKES A TRAGEDY
TOOL THAT IS AVAILABLE IN THE
FUTURE WHEN THERE'S A PROBLEM.
AND YOU KNOW FALL GOES WELL
PRACTICE TO WOULD NEVER BE USED
WE CAN ONLY HOPE.
FOR THOSE REASONS THE
ASSOCIATION CALIFORNIA CITIES
ORANGE COUNTY DOES ASK FOR YOUR
SUPPORT.
THANK YOU OTHER WITNESSES IN
SUPPORT.
RIGHT KEY CO IT ON BEHALF OF THE
CITIES OF HUNTINGTON BEACH IN
FULLERTON IN SUPPORT.
GOOD AFTERNOON CARE ROSS ON
BEHALF OF THE CITY OF SAN MARCOS
IN SUPPORT.
OKAY WITNESSES IN OPPOSITION.
THE CABINET MEMBERS JUDGE
SURPRISE THIRD WITH THE
CALIFORNIA SCHOOL EMPLOYEES
ASSOCIATION.
HARM WE ARE NOT POSITION
BECAUSE.
DENY AND COLA TO.
SENIORS.
WOULD BE JUST DEVASTATING TO
THEM.
WHEN THEY HAVE TO FACE THE
RISING COST OF FOOD ALL
HEALTHCARE COSTS IN THE FUTURE.
AND SETTING UP TWENTY PERCENT
BENCHMARK RECOGNIZE TO SWING AND
UNFUNDED.
STATUS OF OUR PENSION.
AS YOU KNOW DOING TO GREAT
RECESSION WE LOST SOME.
WHEN THE PRIVATE OR PUBLIC
PENSION SYSTEM. NEARLY THIRTY
PERCENT.
AND RIGHT BEFORE IT INDIA
PENSION FUND WAS ACTUALLY ON AND
ONE PERCENT.
UNFUNDED.
AND SO IT DOESN'T RECOGNIZE
THESE KINDS OF SWING IT DOESN'T
RECOGNIZE A POLICY DECISION THAT
THE COUPLES WOULD HAVE ADOPTED.
THEY MEET ALSO THE BUT YES
SPENT.
WANT TO REDUCE DATA.
DISCOUNT RATE FOR THEM EIGHT THE
QUARTER TO HOW TO SEVEN PERCENT
AND DOT KIND OF REDUCTION HAS A
DIRECT IMPACT.
ON THE UNFUNDED STATUS WHEN A
WE'RE GOING TO ALLOW THESE
POLICY TO BE IN PLACE.
BEFORE BE AT MORE CHANGES THAT
COULD HURT HOUSING IS IN THE
FUTURE.
PUT THOSE RECENTLY OPPOSED THE
BILL.
MMHM.
FISHERMEN SENATORS TERRY BROWN
ON BEHALF OF FAST HERE YOU
CALIFORNIA.
.
I'M HAVING TROUBLE FIGURING OUT
WHERE TO BEGIN WITH THIS BILL.
BUT.
AYE I WILL SEE ATTACKING.
THE PROBLEM THROUGH. PRETTY HIGH
RE. AND.
.
SURVIVOR BENEFITS.
SEEMS.
DISASSOCIATED WITH THE PROBLEM
AND IN THE STATE FOR EXAMPLE.
THIS IS FUNDED IN A COMPLETELY
SEPARATE FUND THAT IS NOT UNDER
FUNDED YET WE'RE GOING TO APPLY
THAT TO.
THE.
COLAS OF RETIREES RATHER THAT
DISTANCE NOTHING TO REALLY SOLVE
THE PROBLEM. BUT IT DOES
EXACERBATE THE LIVES OF RETIREES
WHO RELY ON THAT COLA TO MAKE A
LIVING TO PAY THEIR BILLS TO US
SURVIVE. AND IT SEEMS UNUSUALLY
WHO MISSED TARGETED. TO THE
PROBLEM.
THEY DID NOTHING THERE WERE NO
ENHANCEMENTS TO CALL LIZ.
DURING.
THIS PERIOD WHERE THE MARKETS
TANKED. AND WALLSTREET ABOUT
LOST TRILLIONS OF DOLLARS FROM
OUR MEMBERS MONEY.
WHY SHOULD THE BURDEN FALL UPON
RETIREES AND SURVIVORS? AND THE
FAMILIES AND THAT'S EXACTLY WHAT
THIS BILL DOES AND I THINK IT'S
THAT. MISGUIDED AIMED AT THE
WRONG PEOPLE AND.
.
I WON'T SAVE THE KIND OF MONEY.
THEY'RE HOPING IT WILL FOR THAT
REASON WE OPPOSE THANK YOU.
OKAY OTHER WITNESSES A SUPPLY
AND OPPOSITION YOU COULD
AFTERNOON JENNIFER BAKER WITH
THE CALIFORNIA TEACHERS
ASSOCIATION ALSO IN OPPOSITION
TO THE BILL THIS BILL DOES NOT
RECOGNIZE THAT A CONSIDERABLE
IMPACTS OF THE LEGISLATURE AND
THE GOVERNOR CREATED IN AB
FOURTEEN SIXTY NINE WHEN IT WAS
PASSED A FEW YEARS. AGO TO
ADDRESS THE LONG TERM UNFUNDED
OBLIGATION OF CAL STIRS. CASTERS
MEMBERS ARE SEVENTY TWO PERCENT
WOMEN SO FOR US THIS IS A
WOMAN'S ISSUE WE ALSO SEE THIS
AS AN ATTACK ON WOMEN IN CASTERS
WHO DISPROPORTIONATELY. LIVE
LONGER THAN MEN AND SO IF YOU DO
WANT TO LIVE LONGER
STATISTICALLY YOU WANT TO BE A
FEMALE TEACHER.
BUT WHAT I DO WANT TO KNOW IS
THAT ARE MEMBERS ARE PAYING MORE
THEY'RE ACTUALLY PAYING MORE TO
THEIR CAL STIRS BENEFITS WERE
GOING TO SEE OUR NEW MEMBERS WHO
WERE.
GIVEN THE TO IT SIXTY TWO
BENEFITS UNDER PEPPER ADAM ARE
NOW PAYING MORE IN THEY'RE GOING
TO LIKELY BE PAIN AN ADDITIONAL
ONE PERCENT OF THEIR SALARY.
MAYOR PAYING MORE AND UNDER A.
B. FOURTEEN SIXTEEN NINE THAT
SPECIFICALLY IMPACTED THEIR COLA
THIS WOULD UNDO THE AGREEMENT
THAT OUR EDUCATORS MADE WITH THE
LEGISLATURE AND GOVERNOR. IN
GOOD FAITH AND WE WOULD ASK YOU
TO HOLD UP YOUR COMMITMENT AND
ALSO SUPPORT THE EDUCATORS THAT
WE'RE TRYING TO KEEP IN THE
CLASSROOM.
MISTER CHAIRMAN MEMBERS OF THE
COMMITTEE CHRISTINE BAUM ON
BEHALF OF THE CALIFORNIA
PROFESSIONAL FIREFIGHTERS. WE
ALSO ARE OPPOSED TO THE MEASURE
HAVING WITH ARTIE STATED ALL
DISCREETLY STATE REALLY DOESN'T
BEAR ANY RELATION TO THE ACTUAL
FUNDED STATUS OF EACH PARTICULAR
EMPLOYER SO IT'S. IT'S ARBITRARY
AND NOT THE SOLUTION BUT WE ASK
FOR YOUR NOBLE. THANK YOU.
GOTTEN INTERMEMBRANE STARE
CLINICS ON BEHALF OF THE SCHOOL
EMPLOYERS ASSOCIATION
CALIFORNIANS SMALL SCHOOL
DISTRICTS ASSOCIATION ON BEHALF
OF THE FLOOR EMPLOYERS THAT WE
REPRESENT WE MUST REGRETTABLY
OPPOSE. I'M BECAUSE FOR US
SOLVING THE CRISIS OF THE
TEACHER SHORTAGE REALLY DEPENDS
ON THE GREAT BENEFITS OF HAVING
THOSE PROMISED BENEFITS BE THERE
IN THE FUTURE. BENEFIT
REDUCTIONS I'M AT NO FAULT OF
THE EMPLOYER EXTREMELY
PROBLEMATIC FOR US ON AND ALL
ALSO NOTE THAT WHETHER YOU'RE AN
EDUCATOR UP BECAUSE YOU'RE A
TEACHER OR A CLASSIFIED
EMPLOYEE.
BENEFITS ARE EXTREMELY MODEST
AND THE CALL THE SENATE TWO
PERCENT BOTH SYSTEMS COULD SAY
THAT BENEFITS OF THE PROBLEM IN
OUR CASE THE SCHOOLS CASE.
REALLY ISN'T KIND OF THE RIGHT
KIND OF APPROACH TO TACKLING THE
LIABILITY PROBLEM THANK YOU.
THANK YOU.
CHAIRMAN PAN MEMBERS TEN TOP AND
FOR THE CALIFORNIA STATE
RETIREES.
OF FOR THE STATE RETIREES IT'S
HARD NOT TO TAKE THIS
PERSONALLY.
PICOLA SEEMS THE LEAST YOU CAN
GET OCCASIONALLY. FOR DEDICATING
YOUR LIFE PUBLIC SERVICE TO THE
STATE OF CALIFORNIA. SO THEY ARE
STRONGLY OPPOSED.
A FOR THE PROFESSIONAL ENGINEERS
IN CALIFORNIA GOVERNMENT THE
CALIFORNIA ASSOCIATION OF
PROFESSIONAL SCIENTIST. ALSO
OPPOSED WE WOULD ARGUE THAT THIS
IS SOMETHING THAT TO A BELONGS
AT THE COLLECTIVE BARGAINING
TABLE IF THIS IS SOMETHING THAT
THE STATE OF CALIFORNIA SEEKS IN
MARKETING. SEX.
THANK YOU GOOD AFTERNOON MISTER
CHAIR MEMBERS TO ICELAND
MARTINEZ WEIGHT WITH THE
CALIFORNIA STATE TEACHERS
RETIREMENT SYSTEM AND FOR
REASONS ALREADY STATED
OPPOSITION TO THE BILL. THANK
YOU.
KOBE PRESIDED WITH CALIFORNIA
ASSOCIATION OF PSYCHIATRIC
TECHNICIANS ALSO IN OPPOSITION
THANK YOU.
JOSHUA VOCAL WITH THE AMERICAN
FEDERATION OF STATE COUNTY AND
MUNICIPAL EMPLOYEES ALSO IN
OPPOSITION. THANK YOU.
AARON READ REPRESENTING. CREDIT
HE THAT CAN READ OF AN
ALPHABETICAL ORDER ACCOUNT FIRE
LOCAL TWENTY EIGHT EIGHTY ONE
CALIFORNIA ASSOCIATION HAVE A
TROUBLING. CALIFORNIA
ASSOCIATION PROFESSIONAL
SCIENTISTS WHICH HAD MENTIONED
ORANGE COUNTY EMPLOYEES
ASSOCIATION PEACE OFFICERS
RESEARCH ASSOCIATION OF
CALIFORNIA POOR ACT. AND RETIRED
PUBLIC EMPLOYEES OCEAN.
NOTHING FURTHER TO ADD THANK YOU
THANK YOU.
A FRENCH WOMAN WITH THE
RIVERSIDE SHERIFF'S ASSOCIATION
IN OPPOSITION. THANK YOU.
ALRIGHT QUESTIONS FROM COMMITTEE
MEMBERS US ARE LEYVA.
I APPRECIATE THAT YOU ARE TRYING
TO LOOK OUT FOR.
PENSIONS AND MAKING SURE THAT
THEY ARE FULLY FUNDED BUT I JUST
THINK THIS IS THE WRONG GROUP OF
PEOPLE TO LOOK AT.
I KNOW YOU'VE ALL HEARD ME TALK
ABOUT MY MOM AND AFTER THIRTY
FIVE YEARS OF BEING AN
INSTRUCTIONAL AIDE IN THE CHINO
SCHOOL DISTRICT. HER PENSION IS
JUST ABOUT TWO THOUSAND DOLLARS
A MONTH SO AT A COST OF LIVING
OF TWO PERCENT WOULD BE ABOUT
FORTY DOLLARS A MONTH. AND I
JUST YOU KNOW. IF SHOULDN'T
HAVE%
MY DAD SHE WOULD BUILD LIVE ON
THAT'S WAS A SOMEONE WHO
DEDICATED HER LIFE FOR THIRTY
FIVE YEARS.
TEACHING OUR CHILDREN TO READ
SHE LOVED HER JOB SHE STILL GOES
BACK AND SUBSTITUTES ANA WIND
MOMUS EVERY WEEK. SO I DISAGREE
HAVE TO WORRY ABOUT THE PEOPLE
WHO MADE DECISIONS.
.
AND AND SPENT THEIR WHOLE LIFE
DOING WHAT WE WANT THEM TO DEAL
AND TWO PERCENT COLA INCREASE I
STILL THINK THAT'S TOO MUCH TO
ASK BIG YOU.
BUT VOTING NO.
THEY'RE PORTANTINO. THINK YOU
ARE MISTER CHAIR MISTER MOORE
LOCK.
I'M NOT GOING TO BE SUPPORTING.
S. B.. TEN THIRTY ONE BUT AS
THIS IS THE SENATE WE TRY TO BE.
CONGENIAL IMPEACH OTHER I WILL
MOVE YOUR BILL AS YOUR COLLEAGUE
IS NOT HERE.
THANK YOU THANK YOU CENTER
PORTANTINO WAS GOING TO ASK FOR
A.
COURTESY MOTION IF SOMEONE
WASN'T GOING TO MOVE TE BILL
ALREADY UP XENA CENTER A MORALE
WOULD HAVE SHUT DOWN SO IF HE
WERE ABLE TO BE HERE.
SIMILAC ANY I BET PREACHY YEAR
CONCERNED ABOUT PENSION I THINK
WE ALL WANT TO BE SURE PENSIONS
ARE THERE.
I THINK THIS IS. THE.
THE WRONG GROUP TO BE. LOOKING
AT I MEAN WHEN WE TALK
OFTENTIMES WILL TALK ABOUT WELL
WHAT HAPPENS TO ALL THE SENIORS
ON FIXED INCOMES WHILE.
THIS IS WHO THEY WERE TALKING
ABOUT RIGHT AND.
THERE'S A COLA BUT FRANKLY THAT
COLA AS ANYONE WHO'S LOOKED AT
THE COST OF LIVING AROUND HERE.
HARDLY KEEPS UP WITH THE ACTUAL
COST OF LIVING INCREASES THAT
ARE. NOW FISKE FIXED INCOME
SENIORS ARE ARE FACING.
ANDSO UNFORTUNATELY I WILL NOT
BE ABLE TO SUPPORT THE BILL. ARE
TODAY.
HOWEVER. SO.
CREDIT TO WHICH I CLOSE I WOULD
LOVE TO CLOSE THANK YOU MISTER
CHAIR.
.
THANK YOU SPECIALLY FOR YOUR
PATIENCE WITH ME.
.
I THOUGHT IT WOULD BE REALLY FUN
TO COME TO SACRAMENTO AND AND
JUST ABOUT UPSET EVERYBODY.
BUT. I SAY THAT IS YOUR RIGHT I
SUGGEST THAT WE NEVER EVEN GOT
ADVOCATES THAT ARE UPSET WITH ME
BECAUSE.
THE BILL DOESN'T REALLY. GO FAR
ENOUGH SO THAT YOU AND I BOTH
HAVE MOMS. AND.
I'M NOT ANTI WOMAN I AM HAPPILY
MARRIED TO ONE FOR ALMOST THIRTY
EIGHT YEARS.
.
BUT THIS BILLS PROSPECT OF IT
ISN'T CURRENT SO CURRENT
RETIREES. DON'T HAVE A CONCERN
HERE THIS SHOULD BE.
INDIVIDUALS THAT WILL BE
RETIRING IN THE FUTURE.
SO LET ME ADDRESS A FEW OF THE
POINTS IF I COULD MISTER CHAIR.
WE SELECTED TWENTY PERCENT I'M
NERVOUS WHEN A PLAN GOES BELOW
EIGHTY PERCENT MOST PEOPLE.
THE IN THE DEFINED BENEFIT
PENSION AREA ARE CONCERNED ABOUT
EIGHTY PERCENT FUNDING YOUR
LAST.
SO. MAYBE IF IF IF THERE'S A
CONCERN WITH THAT YOU KNOW IT
SHOULD BE TWENTY FIVE PERCENT
BUT THAT WOULD STILL. AFFECT
CALPERS SHOULD BE THIRTY PERCENT
WELL IT WOULD OF INTEL JUST A
COUPLE WEEKS AGO AND CALPERS
JUST WENT OVER SEVENTY ONE
PERCENT.
FUNDED SO SOMEWHERE THERE HAS TO
BE SOME KIND OF.
MARKING POINT AND SO WE SELECTED
A TWENTY PERCENT.
.
AT IF YOU QUANTIFY THE COLA AND
YOU HAVE A. BACKSTOPS THEN IT
WOULD REDUCE THE UP AND UP BY
BILLY WHICH MIGHT EVEN ACTUALLY
HELP. AYE IN IN IN THE CASE OF
EXTREMELY.
.
THE.
COLAS.
ANOTHER ARGUMENT THAT WAS MADE
THAT YOU KNOW YOU DO IT AT THE
BARGAINING TABLE BUT. CURRENT
LAW AS I UNDERSTAND IT I COULD
BE CORRECTED GLENN IS HERE HE
KNOWS IT ALL. A BUT IT'S A
MINIMUM OF TWO PERCENT CALL I
DIDN'T SEE ZERO. I IN THE CODE
SO IF IF IF THAT'S AN IDEA
SHOULD BE PURSUING THEN I CAN
TALK TO GLEN ABOUT THAT.
PARA AFTERWARDS
BUT IT IS PROSPECT GIVE IT IS
PROACTIVE IT'S FOR FUTURE
RETIREES THEY WOULD. UNDERSTAND
THAT IT IT IS SOMETHING ON THE
HORIZON IT WOULD BE A PART OF A
SOLUTION THAT. COULD PREVENT
THEIR. RETIREMENT FROM GOING
INTO WORK SHAPE SHOULD THAT
OCCUR.
THE ACTIVISTS WOULD LIKE TO
MAKE IT APPLICABLE TO EVERYBODY
AND GO AFTER ALL THE RETIREES
IT'S ABOUT WHAT I'M DOING TIME
GETTING PLENTY OF PUSH BACK ON
THE OTHER SIDE SENATOR LEYVA.
BUT THE BURDENS GONNA FALL ON
SOMEBODY.
FAMILIES CAN HAVE BEEN WE GOT
SOME EXAMPLES AND SO I WANT TO
SORT OF BE IN FRONT OF IT.
PROVIDING SOLUTIONS IS NOT EASY.
BUT BOY WHEN SURE IN A IN A
BANKRUPTCY COURT LIKE I'VE BEEN.
WITH ORANGE COUNTY YOU KIND OF.
START REALIZING YOU HAVE VERY
LIMITED OPTIONS AND THEN WE
WON'T HAVE.
A CHANCE TO DO SOMETHING LIKE
THIS SO IT'LL BE FORCED ON US SO
THAT'S WHY I'M.
TRYING TO JUST PROVIDE SOME.
IDEAS AS UNCOMFORTABLE AS THEY
MAY BE.
THANK YOU MISTER CHAIR.
THANK YOU SO THE BILL AND HAS
BEEN MOVED.
BY CENTER PORTANTINO. OF THE
MOTION IS A.
IT'S.
DE PASSED IN REFER TO A PERSON
APPROPRIATIONS COMMITTEE.
SECRETARY PLEASE CALL THE ROLL
AND NO AND NO GROW.
LEYVA NO FLAVOR NO MORE LOCK I
FOR LIKE AYE PORTANTINO NOW
PORTANTINO.
THE BILL FAILS A ONE THREE.
WHAT YOU ASK FOR
RECONSIDERATION BECAUSE OKAY SO
I GUESS I'VE BEEN CONSTRUCTED WE
NEED TO HAVE A ROLL CALL FOR
RECONSIDERATION?
SO SECRETARY PLEASE CALL THE
ROLL FOR RECONSIDERATION PAN AYE
AYE THEN I RURAL LEYVA. LIVE I
MORE LOCK MY LIKE I PORTANTINO
AYE PORTANTINO OKAY SO I HAVE
THE BILL FOR RECONSIDERATION
OKAY SELECTS ITEMS ITEM NUMBER
TWO SP TEN THIRTY TWO. OF US IN
THIS YEAR I CAN TAKE A BREAK IF
YOU WANT BUT NO WORDS GOING TO
THROW AND. TRY TO BE COURTEOUS
YOU.
SENATORS SO ON S. B. TEN THIRTY
TWO I I COLLEAGUES AYE AYE. AYE
PRESENTED THAT THE CURRENT NEED
FOR PENSION REFORM MY LAST
PRESENTATIONS I WON'T GO THERE
THIS TIME BUT CALPERS HAS UNIQUE
APPROACH. ON HOW IT'S TWENTY
NINE HUNDRED AND FORTY FIVE PLAN
SPONSORS CAN EXIT. IT CHARGES AN
EXIT FEE EVEN THOUGH THEY DON'T
CALL IT FOR YOU BUT THEY DO CALL
THE FEE.
THAT BASICALLY FULLY FUNDS THE
PLAN THERE THAT THE P. THE
EMPLOYER'S PLAN AND THEN
REQUIRES IT. IN SHORT ORDER VERY
SHORT TIME PERIOD PLAN SPONSORS
HAVE A LEGAL REQUIREMENT TO MEET
ITS FIDUCIARY OBLIGATIONS TO ITS
EMPLOYEES RETIREES THIS DOESN'T
CHANGE. ANYTHING BUT SHOULD SEEK
AN ALTERNATIVE ROUTE TO MEET
THOSE REQUIREMENTS IT DISCOVERS
IT IS IN HOTEL CALIFORNIA.
YOU CAN IT YOU CAN CHECK INTO
CALPERS ANYTIME BUT YOU CAN
NEVER LEAVE.
COLLEAGUES THIS APPROACH IS
WRONG ON SO MANY LEVELS. AND IT
IS CREATING AWKWARD DILEMMAS FOR
A NUMBER OF RETIREES LIKE THOSE
IN THE CITY OF LOYALTON.
LOYAL TO HIS PIONEERING A NEW
TRAIL AND SP TEN THIRTY TWO IS
SIMPLY MAKING A COMMONSENSE
APPROACH. ACCESSIBLE.
MY OLD FRIENDS AT THE ORANGE
COUNTY EMPLOYEES ASSOCIATION
PROVIDE INTERESTING OPPOSITION
ARGUMENT BUT THEY ADVOCATED
LEAVING THE ORANGE COUNTY
EMPLOYEES RETIREMENT SYSTEM SOME
TWO DECADES AGO. TO SEEK AN
ALTERNATIVE PENSION
ADMINISTRATOR. GOOD FINANCIAL
MANAGEMENT DICTATES FAIR AND
APPROPRIATE ALTERNATIVES AND THE
TERMINATION TERMINATING AGENCY
POOL IS IS NEITHER. A RECENTLY
FOR CITIES CONTACTED CALPERS
REGARDING EXITING THE RESPONSE.
CALPERS GAVE THEM AN AMOUNT THAT
EXCEEDED THEIR ANNUAL BUDGET FOR
THREE OF THEM.
COLLEAGUES.
LET'S COMMUNICATE THE CALPERS
THAT ITS CURRENT EXIT PLAN IS IN
NEED OF AN IMPROVEMENT AND I
RESPECTFULLY ASK FOR AN AYE
VOTE.
OKAY WITNESSES SUPPORT YEAH I'M
MARCIA FRETS.
I WAS A FORMER THEM OF MEMBER.
A FORMER MEMBER OF THE
GOVERNMENTAL ACCOUNTING
STANDARDS BOARD TASK FORCE FOR.
PENSION BENEFIT ACCOUNTING AND
REPORTING I'M COULD I'M
CONSIDERED A NATIONAL EXPERT. IN
THIS AREA.
THIS BILL IS PRO LABOR.
I A LOT OF PEOPLE ARE CONFUSE ON
WHAT THIS TERMINATION FULL IS
ALL ABOUT AND AND I READ THE
ARGUMENTS AGAINST IT THEY REALLY
DON'T UNDERSTAND THE NUANCES OF
IT. AND I WON'T GO INTO IT TOO
TO DO DETAILED. IT CURRENT THAT
LOT CURRENTLY MAKES IT
IMPOSSIBLE FOR AGENCIES TO
AVOID.
BENEFIT CUTS NONE OF THEM WANT
TO CUT BENEFITS OR FREEZER PLAN
UNLESS ARE IN SEVERE. FISCAL.
SITUATIONS CLOSE TO INSOLVENCY
AND MANY MANY OF THE AGENCIES
THAT MIGHT BECOME IN THIS
POSITION. THE ONLY REASON
THEY'RE APPROACHING INSOLVENCY
IS BECAUSE OF THEIR PENSION
COSTS.
.
WHY SHOULD MAKE IT EASIER FOR
THESE AGENCIES?
TO SATISFY THEIR OBLIGATIONS TO
THEIR WORKERS NOT MAKE IT HARDER
CURRENTLY THE TERMINATION POLL
AND THAT'S POLICIES ARE MAKING
IT HARDER. FOR THESE AGENCIES ON
THE BRINK OF INSOLVENCY TO
SATISFY THEIR OBLIGATIONS.
I REALLY FEEL AND I'M NOT AN
ATTORNEY BUT I'VE LOOKED AT THE
TOP TERMINATION CLAUSE FOR A
NUMBER OF YEARS EVER SINCE THE
STOCKTON BANKRUPTCY.
AND THE JUDGE OF LOOKED AT IT
THIS WELL WE HAVE A WITNESS FROM
CALPERS EXPLAIN THAT IN THE
BANKRUPTCY PROCEEDINGS. AND THE
JUDGE PRETTY MUCH SAID YOU'RE
TERMINATION POLICY.
IS NOTS.
.
AND I REALLY FEEL IF THIS IF
THIS CLAUSE WERE CHALLENGED IN
COURT IT WOULD BE CONSIDERED AN
ENFORCEABLE.
AGENCIES THAT GOT INTO THESE
BENEFIT INCREASES RETROACTIVELY.
USING TH CALPERS REPORTS WERE
MET THERE WAS MISREPRESENTATION
AND NON DISCLOSURES.
THERE'S AND IF THERE'S
UNCONSCIONABLE.
RATE OF RETURN ASSUMPTIONS THAT
ARE USE FOR AGENCIES THAT WANT
TO TERMINATE WITH CALPERS. IT
MAKES IT IMPOSSIBLE FOR THEM TO
GET AWAY SO WHAT YOU'VE GOT ARE
THESE AGENCIES ARE ON THE BRINK
THAT IF THEY CAN. IF THEY'VE.
EVEN IF THEY'VE CONTRACTED WITH
THEIR EMPLOYEES TO FREEZE OUR
BENEFITS
OR MODIFY THEIR BENEFITS AND
THEY HAVE TO LEAVE CALPERS
BECAUSE SOMETIMES IF YOU MODIFY
YOUR BENEFIT. AND IT'S NOT A A
MODIFICATION THAT CALPERS IS
ABLE TO ADMINISTER. CALPERS SAYS
YOU GOTTA GET OUT AND.
THIS DIDN'T THEN MAYBE THEY DO
HAVE TO LEAVE AND GO T A
DIFFERENT AGENCY TIM TO MANAGE
THEIR PENSION FUNDS MANAGE
THEIR.
THEIR ASSETS LIKE THE CITY OF
CAP THAT CAPISTRANO BEACH.
THEY'VE GOT A THEY'VE GOT THEIR
OWN PENSION ADMINISTRATION
THERE'S ALL KINDS OF DIFFERENT
PLACES YOU CAN GO TO GET YOUR
YOUR NEW PENSION. FORMULA
ADMINISTERED WITHOUT HAVING
CALPERS BUT CALPERS HAS IS.
AND IN MY OPINION AN
UNCONSCIONABLE.
REQUIREMENT ON TERMINATING BY
USING A RISK FREE RATE OF RETURN
AND LOCKING YOU END OF THEM.
THERE'S NOTHING IN THIS BILL
THAT WOULD CHANGE THE FACT THAT
THE BENEFITS WOULD BE.
PAID BY THE AGENCY THAT IS
MAKING THE PROMISES TO THE
EMPLOYEES THIS BILL MAKES IT
EASIER FOR AGENCIES TO
TERMINATE.
WITH CALPERS AND SATISFY THE
OBLIGATIONS TO THEIR RETIREES
AND THEIR EMPLOYEES WHAT WE'VE
GOT RIGHT NOW IS IF THEY'RE
FORCED TO TERMINATE. UNDER
CALPERS CURRENT RULES.
THEY CAN'T SATISFY THE
OBLIGATIONS WEEK I'M I'M LOOKING
THAT WE'RE NOT GONNA HOPEFULLY
HAVE ANY AGENCIES NEED TO
TERMINATE. BUT IF WE DO WE WANT
TO MAKE SURE THAT THEIR BENEFITS
ARE PAID.
TO THE BEST OF THE ABILITY NOT
THE WORST LIKE WE HAVE RIGHT
NOW.
THANK YOU LE ANY OTHER WITNESSES
IN SUPPORT.
YOU.
GOOD AFTERNOON CURIOSITY HAVE
THE CITY OF SAN MARCOS IN
SUPPORT AGAIN.
TO HAVE. SEEN THE WAY TO SUPPORT
A WITNESS IN OPPOSITION.
HAVING A.
YEAH.
MISTER CHAIRMAN MEMBERS TO JUDGE
THE PROCESS BECAUSE WHAT YOU'RE
SCHOOL EMPLOYEES ASSOCIATION.
THAT I I HAVE TO START WITH AN
APOLOGY TO DR THEORY. WE HAVE
NOT LISTED IN THE ANALYSIS AND
IT MAY BE OUR FAILURE TO SEND
THE LETTER.
AND WE NEVER LIKE TO SURPRISE
AND AUTHOR AT THAT HEARING
ITSELF. OF BUT WE ARE A. PART IN
OPPOSITION TO THIS PROPOSAL
NAMELY BECAUSE I'M US AS WE
UNDERSTAND IT.
AGENCY CAN LEAVE HAVE LEFT AND
IS ABOUT AND SHOWING THE ACTUAL
COST OF LIVING IS IS RECOUP
SOMEHOW.
AND SO WE ARE KIND OF
BEWILDERED APPLIED THIS IS
NECESSARY.
WE GET THAT IS EXPENSIVE.
BUT THAT'S THE POINT OF HAVING
TO ACTUAL COST BECAUSE.
IF IT'S GOOD TO GET AND GETTING
OUT MAY BE DIFFICULT DONE SO WE
WOULD LIKE TO KNOW VOTE ON THIS
BILL THANK YOU.
MISTER CHAIRMAN SENATORS TERRY
BROWN IN BEHALF OF SEIU
CALIFORNIA.
LET ME START BY JUST SAYING I
THINK I AGREE WITH SENATOR MORE
LACK RIGHT TO STAY OUT. OF.
THAT.
THE CALPERS EXIT PROGRAM IS
CUMBERSOME.
IT IS EXPENSIVE.
IT DOES RELY ON AN AGENCY
COMING UP WITH A LOT OF MONEY UP
FRONT THE REASON FOR THAT. IS TO
MAKE SURE THERE'S MONEY THERE TO
PAY THE BENEFITS LONG TERM YOUR
CLOSING OUT NEW EMPLOYEES HAND
THE PROGRAM TO FUTURE EMPLOYEES.
AND WITH A ONE ROOM SURE YOU
HAVE THE.
ACTUARIAL AMOUNT TO PAY THOSE
BENEFITS LONG TERM.
NOW COULD THAT BE NEGOTIATED IN
THE DIFFERENT WAY IN A DIFFERENT
MANNER THAN THE TAP PROGRAM.
I BELIEVE THAT'S A CONVERSATION
SENATOR AND I CAN'T CALPERS
COULD HAVE IN THE FUTURE. BUT
ELIMINATING THE TAP PROGRAM
ALLOWING THEM TO CUT AND RUN
WITH THEIR FUNDS AND INVESTMENT
A PRIVATE. EYE IN INDY IS
ABSOLUTELY THE WRONG WAY TO BE
SURE THESE BENEFITS WE AVAILABLE
FROM HIM MY MEMBERS LONG TERM.
AND FOR THAT REASON WE OPPOSE
BILL.
OTHER WITNESSES IN OPPOSITION.
AS CHAIR RANGE FROM OF THE
RIVERSIDE SHERIFF'S ASSOCIATION
ALSO OWNS OPPOSITION THANK YOU.
A MISTER CHAIRMAN AND MEMBERS
TED TOP AND FOR THE CALIFORNIA
STATE RETIREES STRONGLY OPPOSE
THIS IS ABOUT. GIVING EMPLOYERS
AN INVITATION TO PULL THE RUG
OUT FROM UNDERNEATH THEIR
EMPLOYEES.
AND STIFFENED AND RETIREMENT.
A PENSION. AS A PROMISE THAT
SHOULD BE KEPT IT IS PART OF THE
AGREEMENT WHEN YOU COME TO WORK
FOR THE STATE OF CALIFORNIA OR
ANY OTHER PUBLIC AGENCY. THE
NOTION THAT YOU'RE GOING TO
ALLOW EMPLOYERS OUT OF THAT
COMMITMENT TO THEIR EMPLOYEES
IT'S FUN CONSTABLE AND IT'S IT'S
ON FAT FRANKLY ON ETHICAL.
A REGION OF THE.
IT MISTER CHAIRMAN MEMBERS SAY
CALIFORNIA ASSOCIATION ERIN READ
REPRESENT CONFERENCE HAS YOU
HAVE A COMMENT HELLFIRE LOCAL
TWENTY ONE.
CAPS TO SCIENTISTS ORANGE
COUNTY EMPLOYEES AND RETIRED
PUBLIC EMPLOYEES SITUATION.
I DON'T KNOW THAT WE REALLY
REVISIT WHAT WE DID WITH PEPPER
IN TWENTY TWELVE. PEPPER WAS A
HUGE REFORM MUCH MORE THAN POLL
MOST PEOPLE DON'T REALIZE AND
LOT OF PEOPLE HAVE FORGOTTEN
WHAT IT DID. VERY BRIEFLY. FOR
NEW HIRES IT MAKES HIM WORK
LONGER THEY GET A LOWER FORMULA.
AND THERE'S A DOLLAR CAP.
AND THEY EMPLOYEES ALL HAVE TO
PAY HALF THE NORMAL COURSE OF
THE RETIREMENT HALF THE NORMAL
BECAUSE OF THE RETIREMENT AND
THAT'S INCLUDING THE ACTIVE
EMPLOYEES TODAY. NOT JUST NEW
HIRES
THE ACTIVE EMPLOYEES TODAY ARE
NOW PAYING HALF THE NORMAL COST
SO WAS A MAJOR REFORM AND IT
SAVED BILLIONS ARE READY AND
WILL SAVE. MANY BILLIONS OVER
THE YEARS AS WE HIRE MORE AND
MORE PEOPLE.
THAT A COST SAVING SCHOOL UP SO
WE NEED TO TAKE AT LEAST A
MOMENT TO SAY. THAT THAT WAS A
VERY GOOD JOB THE LEGISLATURE
DID WITH THE GOVERNOR ON ON
PAPER.
OKAY. A QUESTIONS FROM COMMITTEE
MEMBERS.
OKAY.
SO.
THEY HAVEN'T SO ONE OF THE
QUESTIONS SO ISSUES THAT'S BEEN
POSES IS THAT WHAT ASSURANCES DO
WE HAVE.
WITH THIS BILL THAT.
EMPLOYEES.
TRANSFER OVER WATCH YOU GET.
THEIR RETIREMENT THAT THAT AND
SO WHAT DIFFERENCES ARE WE
PUTTING IN PLACE TO SAY THAT
WELL IF. THAT THE EMPLOYER WHO
THIS CASEARE PUBLIC ENTITIES
NEED TO PONY UP.
YEAH AND NOT TO ABANDON THEIR
RETIREES ARE. POLICE WHEN THEY
BECOME RETIREES WHO GETS THE
BEST QUESTION TO ASK MR CARE.
WHO WERE TALKING ABOUT
INTENTIONS HERE?
WE'RE NOT TALKING ABOUT
ALLOWING ANYONE TO CUT RUNNER
PULL THE RUG.
THAT'S FAR FROM OVER TRYING TO
EVEN TALK ABOUT THE PROMISE IS A
PROMISE AND THESE BENEFICIARIES
SHOULD GET THEIR RETIREMENT
BENEFITS. IT'S A LIABILITY THAT
THE MUNICIPALITY HAS INCURRED WE
CANNOT AVOID IT CANNOT LEAVE IT
CANNOT. SO SOLICIT LOYALTON.
THAT CITY HAS TO PAY ITS
BENEFITS TO ITS EMPLOYEES.
IF IT DOESN'T IT WILL BE A FAST
IF. I'M EVEN EVEN HOMEOWNERS ARE
PROBABLY ABBA HAVE SOME
LIABILITY TO EXPECT BECAUSE THAT
LOOK THAT. THAT PENSION WILL BE
PAID.
SO WE'RE WE'RE NOT TALKING AT
ALL ABOUT.
I'M SORRY MEGAN AND I SAY
SOMETHIN.
SO.
.
WE WE WANT ACTUAL COST RECOVERED
SO AN EMPLOYER I ATE A
MUNICIPALITY HAS MADE THEIR
PAYMENTS TO CALPERS. THEY HAVE
EARNED INVESTMENT INCOME THEY
HAVE PAID BENEFITS THEY HAVE A
NET CASH AMOUNT.
THAT'S THEIR FUNDS AND IF THEY
WANT TO MOVE IT TO ANOTHER
INVESTMENT COMPANY THEY'RE STILL
LIABLE TO PAY THE EMPLOYEES.
AND SO I DON'T SEE THEM GOING TO
SHYSTER THEY SEE THEM GOING TO
PROFESSIONAL FERNS. VIA CRAFT
FOR OR OTHERS THERE'S OTHER BY
WEB PHI DELTA YOU NAME WHOEVER
THEY WANT TO GO TO. BUT BUT
RIGHT NOW THEY AREPROHIBITED
FROM A COST STANDPOINT TO
ACTUALLY TAKE CARE OF THEIR
EMPLOYEES TO PROVIDE SOMETHING A
LITTLE MORE COST AFFORDABLE AND
SO THAT'S WHY WE'RE TRYING TO
HELP OUT. OFI HOPE THAT ANSWERS
YOUR QUESTIONS BUT SOME BUT WE
WANT THAT FOR THE RETIREES TO
GET THEIR BENEFITS.
WE'RE NOT PLAYING ANY GAMES HERE
SO IF I CAN ADD PLEASE.
BRIEFLY OKAY.
THERE'S NOTHING THERE'S NOTHING
RIGHT NOW THAT. ENSURES THAT
THOSE BENEFITS ARE GOING TO BE
PAID OTHER THAN. THE LEGAL ARM
THAT CALPERS HAS BATTLED CALPERS
CAN EVEN EXTRACT PAYMENTS OUT OF
THE AGENCY IF THEY LITERALLY
DON'T HAVE THE MONEY TO PAY.
COPPER SAYS OKAY YOU GO INTO
TERMINATED PULL AND CALPERS
RIGHT NOW IS OBLIGATED. TO
REDUCE THE BENEFITS TO THE
ACTUARIAL VALUE OF ASSETS.
AND AND THAT ACTUAR AVAILABLE
ASSETS IS DETERMINED BASED ON A
TWO PERCENT ARE VERY LOW RATE OF
RETURN OKAY SO ANYWAY JUST
FOLLOW UP ON THAT O.
WHEN THE OTHER ISSUES THEN IS
THAT IF THIS BILL PASSES.
BECAUSE ONE THE REASONS YOU
HAVE THE. THE TAP IS IS THAT.
TO. TO ENSURE AGAIN ENSURE THEY
HAVE BUT IS CALPERS US OF THE
CALPERS BEAGLE WE.
SO SO BECAUSE YOU MENTIONED
THAT WELL YOU KNOW THE THE THE
THE PUBLIC ENTITY.
IT'S STILL LIABLE AND I GUESS
NOW I CAN GO AFTER AND REQUIRED
TO PAY OUT THE RETIREMENT. IS
BECAUSE NOW THAT SEPARATE FROM
CALPERS IS CALPERS COMPLETELY
IMMUNE FROM ANY CLAIMS THEN
BECAUSE SINCE THAT. SINCE THAT
ENTITYYOU KNOW THE CITY
WHATEVER SAID WERE SEPARATING
WE'RE GOING OFF TREATING ARE
OWNED BY BY. CALPERS IS
COMPLETELY IMMUNE FROM ANY
CLAIMS FROM FUTURE RETIREES EVEN
IF THE.
SEE.
THAT DID THE SEPARATION.
IS THIS FOR SOME REASON DOES
NOT PONY UP THE MONEY THAT
CALPERS CANNOT BE. A GOOD AT SO
WE CAN GET A COURT SAID WELL YOU
KNOW WHAT CITIES BANKRUPT AND
THEY CAN'T PAY SO I'M GOING BACK
CALPERS NOW TO GET THE MONEY.
THE IF IF YOU HAVE AN EXIT PLAN
THAT GIVES THE PLAN SPONSOR
THEIR ASSETS NET ASSETS AND AND
THEY TRANSFER THE LOOK THAT THE
RESPONSIBILITY OF DISTRIBUTING
THOSE BENEFITS. CALPERS IS FREE
IT'S LIKE A KID MOVING OUT OF
THE HOUSE. OKAY DIRE IT WHAT
THEY HAD ACT YOU REALLY
SHOULDN'T BE GIVING CALPERS THAT
KIND OF LIABILITY EXPOSURE TO
BEGIN WITH OKAY SO I I'M I'M
HEARING DIFFERENTLY.
AND IF THERE'S I THINK THAT
WOULD BE A SUBJECT OF LITIGATION
AND I THINK THAT.
WHAT WHAT I WOULD HEAR YOU
SAYING IS THAT YOU TRANSFER THE
LIABILITY AND THE ASSETS OVER
THE EMPLOYER AND THE EMPLOYER
WOULD BE RESPONSIBLE AND IT
WOULD BE NO?
IT WOULD BE I AYE NO RECOURSE
FOR SOMEBODY GOT A VESTED RIGHT
TO GO BACK AFTER THE FUN. AND I
THINK.
I THINK THAT IS NOT.
A SURE THING AND SO I THINK
THERE'S STILL THE POSSIBILITY
THAT SOMEBODY CAN COME AND SAY
HEY YOU YOU.
MADE THE TRANSFER YEAH WE
THOUGHT THAT THAT OUR OUR LOCAL
EMPLOYER WAS GOING TO BE ABLE TO
LIKE TAKE THE MONEY INVESTED
BETTER THAN YOU DID IT DIDN'T
WORK OUT. WE'VE GOT NOTHING
WE'RE COMING BACK AFTER YOU.
AND.
YOU KNOW I I DON'T THINK THAT
THAT'S A AN APPROPRIATE.
POLICY.
SO I WOULD I WOULD BEG TO
DIFFER.
I'M SORRY THAT'S JUST MY
RECOMMENDATION ABOUT HEARING THE
SENATOR AND LET'S JUST SAY
YOU'RE A FIDUCIARY. AND YOUR
TAIL IN CARE OF.
CENTER PANS A STATE.
AND.
THE A STATEDECIDES TO CHANGE
FIDUCIARY SEEMS TO FIND HERE'S
ALL THE ASSETS EVERYTHING THAT'S
BEEN UNDER OUR CONTROL IT'S ALL.
TRANSFERRED NOW TO THE NEW
FIDUCIARY YOU'RE DONE.
YOU'RE DONE.
WHY WOULD SOMEONE COME BACK
AFTER YOU AFTER YOU COMPLETED
YOUR JOB AND PASSED OVER THE
BATON TO THE SUB? THE PUT THE
SUCCESSOR FIDUCIARY.
YES.
LOVE IT OF. MOVIES.
I THINK IT BUT IF YOU HAVE A
TECHNICAL ANSWER. VERY QUICKLY
THEM THAT IT WOULD BE ARGUED THE
VESTED RIGHT AT ALSO IS LINKED
THE ADMINISTRATOR OF THE THAT
CALPERS LEAGUE THE TRUST THAT
EXISTS.
SO YOUR ATTEMPT TO CHANGE IT YOU
MIGHT BE ABLE TO DO THAT
PROSPECTIVELY BUT YOUCOULDN'T
DO IT FOR THE PEOPLE THAT ARE
ALREADY WHICH YOUR BILL TO SIXTY
A YEAR. YOU'RE TRYING TO.
THAT ELIMINATE THE TAP FOR
EVERYBODY AND IT'S NOT CLEAR TO
ME THAT YOU COULD DO THAT
BECAUSE PART OF THE VESTED RIGHT
IS THE RIGHT TO HAVE A TRUST
FUND LIKE CALPERS PROTECTING
YOUR INTERESTS ARE ACTUALLY IS
THERE ISN'T DAM FROM CALPERS
HERE IS THERE.
ACTUALLY SO. BECAUSE AND SAID IF
I MAY I'D.
THOUGHT I'D.
SO PRECIADO IT I KNOW THAT
DESPERATELY YEAH IT DOES TO YOU
SPEAK TO BECAUSE TO ME ONE OF
THE ISSUES WILL BE AND.
AND BRED NOW GIVE ALSO SEND
MOCKED HAZARD IS IS THAT.
YOU KNOW FIRED REASON FOR THE
TAP IS NOT ONLY TO ASSURE THAT
PEOPLE GET THE RETIREMENT BUT
ALSO TO ASSURE THAT WE PROTECT
THE OTHER RETIREES AND CALPERS
SO THAT PEOPLE DON'T HAVE A
CLAIM ON THE PULL. AND THAT'S ON
SEPARATION SO THIS OF COURSE IS
A VERY IMPORTANT ISSUES SO I
KNOW WHETHER YOU HAD EXPRESS
ANYTHING IN THAT REGARDS I
REALIZE IT'S NOT CERTAIN BUT.
BUT THE GENERAL LEGAL RISK OR
ISSUES MAY RISE FROM.
SITUATION WHERE.
RETIREES THAT WHERE THE PUBLIC
ENTITIES THAT.
BEEN SEPARATED.
DOESN'T MEET THEIR OBLIGATIONS
SUFFER Y. REASON BANKRUPTCY
pTO WHATEVER. BUTTON SCOTT BLACK
GLITCH REPRESENTING CALPERS.
I THINK I CAN ONLY SPEAK TO THIS
ISSUE. AS IT RELATES TO THE TAP
IN THE PURPOSE OF THE TAP WHICH
IS TO. IMMUNIZE THE REST OF THE
FUND.
FROM.
VISA LIABILITIES THAT HAVEN'T
BEEN PAID BY THE EMPLOYER.
AND SO. BECAUSE CALPERS AGREES
TO TAKE ON THE LIABILITY
ASSOCIATED WITH THESE BENEFITS
WHEN.
AN EMPLOYER WANTS TO TERMINATE
THEIR CONTRACT.
WE PUT THEM WE PUT THE ASSETS
AND LIABILITIES.
FOR THEIR MEMBERS SERVICE IN THE
TAP.
WE DO CHARGE LOWER INTEREST
RATES. AND IT'S TO IMMUNIZE THE
REST OF THE PORTFOLIO. I CAN'T
SPEAK TO.
THE PROVISIONS OF THE BILL.
REGARDING.
WHAT HAPPENS IF?
THAT AN EMPLOYER.
NO LONGER IS REQUIRED TO GO INTO
THE TAP.
WHAT HAPPENS WITH THE BENEFITS?
WHAT HAPPENS WITH THE
LIABILITIES?
IT'S REALLY BETWEEN THE
EMPLOYER.
AND THE EMPLOYEES WHICH HAVE
NEGOTIATED THE BENEFITS.
HELLO.
A LITTLE AFTER OKAY NO THANK YOU
THANKS VERY MUCH OKAY. WELL.
SO I THINK MIGHT MY CONCERN IS
IS THAT.
THAT.
WOULD AGREE SITUATION WHERE OF
COURSE FIRST OF ALL WE'RE
CONCERNED ABOUT THE EMPLOYEES
THEMSELVES WHO ARE SEPARATE OF
THE SEPARATED ENTITY BE SURE
THEY GET THEIR RETIREMENT
BECAUSE THAT WAS THE SAID THERE
MIGHT BE SOME THEIR PRIVATE SOME
REMEDIES TO THAT.
IN TERMS OF THEIR LEGAL
OBLIGATIONS ARE BUT THE OTHER
PART. AT YALE AND I THINK THIS
LEADS TO AND. I THINK CALPERS
SPOKE TO THE PURPOSE OF THE TAP.
WAS ACTUALLY TO ALSO ENSURE
THAT.
WE PROTECT THE OTHER RETIREES
BECAUSE THOSE I THINK WE ALL
SHARE WE WANT TO MAINTAIN A
STABLE RETIREMENT PULLS SO PART
OF IT IS AND I THINK I'VE. THAT
AND AS CHAIR OF THIS COMMITTEE
HAVE BEEN. A VERY FIRM ABOUT
BEING SURE THAT YOU KNOW OTHER
PEOPLE DON'T FEEL THEY WILL LOOK
AT IT PADA MONIES AND NO IT'S
THAT MONEY IS TO BE FOR THE
RETIREES WHO ARE IN THE SYSTEM
THAT WE DON'T. CREATE
LIABILITIES ON THAT PULL FOR
PEOPLE FOR FOR TERRITORIES WHO
ARE.
SUPPOSEDLY NOT PART OF THE
SYSTEM A OR BECAUSE ESSENTIALLY
THAT'S
DRYING OUT FROM. FROM PEOPLE OR
IN THE SYSTEM SO.
BECAUSE OF THAT UNFORTUNATELY I
DO NOT FEEL COMFORTABLE ENOUGH.
AND THAT THAT'S NOT GOING TO
THE SITUATION BASED ON THE
INFORMATION I'VE RECEIVED SO FAR
UP PERHAPS IF THE. FUTURE IF YOU
GOT PERS NORTH PURRS OUR OTHER
EXPERTS SINCE THEN ARTICLE THAT
EVERYONE SAYS NO THAT'S NOT THE
CASE I MAY BE A LOT MORE
COMFORTABLE BUT. FOR HIM NOT
COMFORTABLE AT THIS POINT TIME
TO BE ABLE TO SUPPORT THE BILL
BECAUSE OF THAT REASON.
BUT I WILL ASK MY COLLEAGUES TO
SEE IF WE CAN GET A COURTESY
MOTION IF YOU WISH TO HAVE THE
BILL UP FOR THAT.
AND AGAIN I WILL NOT BE
SUPPORTING IT BUT. AS A COURTESY
TO MY SENATE COLLEAGUE I MOVED.
RIGHT I DO WISH TO CLOSE MANNER.
I'M I APPRECIATE YOUR
PROFESSIONALISM IN YOUR CONCERN.
I AM REMINDED OF.
MY WIFE BACK IN NINETY FOUR.
THERE WAS.
I.
I COUNTY TREASURER AND.
OF THE STATE OF.
OHIO.
FOR CUYAHOGA COUNTY. TO WAS
INVESTING.
THE COUNTY TREASURER'S POOL HE
WAS LEVERAGING JUST LIKE ORANGE
COUNTY WAS.
AND IRONICALLY THEY THE ACRONYM
FOR THE THE POOL WAS SAFE SAF
THREE.
BUT FOR SOME REASON THEY HAD
INFERRED THAT EVERYONE WHO
INVESTED WOULD GET THEIR MONEY
BACK IN TOTAL.
ORANGE COUNTY.
JUST PICK THE IT IT FILED FOR
BANKRUPTCY IN OCTOBER OF NINETY
FOUR WE FILED.
UNDER THE SAME CIRCUMSTANCES TWO
MONTHS LATER.
BUT WE SAID.
NO IF IF YOU INVEST TO GET
WHATEVER. YOUR PERCENTAGE OF THE
THE CORPUS SAYS YOU KNOW FUND
THAT'S NOT A MONEY MARKET FUND
BECAUSE BLOW A DOLLAR YOU GET.
WHAT'S LEFT THAT'S JUST THE WAY
IT IS NOBODY GETS DISTRIBUTED
EVENLY SO.
I THINK THAT THE THE PHRASE THAT
MR BLACKLEDGE USED IS IN LIKE A
ROAD DOWN AGREES TO TAKE ON
LIABILITIES AND THAT'S. THAT'S
WHERE I'M HAVING MY PROBLEM.
CALPERS IS ASSUMING.
I LIKE THEY ARE ACTING AS THE
MOTHER OF MUNICIPALITIES AND
SAYING WE WILL HELP YOU. BUT YOU
HERE'S WHAT YOU'RE GOING TO HAVE
TO DO FOR U TO HELP YOU AND
AFTER WORST MOMENT IN TIME.
FINANCIALLY THEY'RE BEING ASKED
THE COP UP IN A MASSIVE AMOUNT
OF MONEY AND CALPERS IS TRYING
TO. SOMEHOW ASSIST THEM THROUGH
THIS THIS PROBLEM AND THAT'S NOT
THE RIGHT SOLUTION IT'S
UNCONSCIONABLE AND SOME OF THE
WORDS THAT WERE USED.
WITH REGARDS TO. THAT TOOK MY
BILL.
THIS HAS TO BE FIXED BECAUSE
THIS STATE SHOULD NOT TAKE ON
THAT LIABILITIES IT SHOULD BE
PROVIDING A SERVICE AND WHEN
THAT SERVICE IS NO LONGER.
DESIRED FOR WHATEVER COMPETITIVE
REASON OR WHATEVER THEN CALPERS
SHOULD BE ABLE TO TRANSFER THAT
MONEY OVER LIKE A FIDUCIARY TO
THE NEXT BUT IT SURE. AND THAT
SHOULD BE THE EXIT IT SHOULDN'T
BE A MASSIVE REQUIREMENT TO FUND
TAP AND SO THAT'S WHY I BRING IT
TO YOU MISTER CHAIR AND THAT'S
WHY I APPRECIATE YOUR PATIENCE
WITH ME. BECAUSE YOU'VE BEEN
VERY KIND AND I. RESPECTFULLY
ASK FOR AYE. ANYWAY.
NO THANK YOU I'LL GET ONE.
THE I THINK YOU CENTER MORE AYE.
SO THAT.
THE MOTION THAT'S BEEN MOVED BY
CENTER PORTANTINO THE MOTION IS.
I DO PAST REFERRED TO SEND
APPROPRIATIONS AS SECRETARY
PLEASE CALL THE ROLL PAN NO AND
NO MORAL LEYVA.
NO LIVE AND NO MORE LOCKED I
LOVE AYE PORTANTINO. PORTANTINO.
OKAY AND PUSHING THE BILL FAILS
ONE THREE I DO WISH
RECONSIDERATION PLEASE OKAY
HOUSE THAT WILL DO A QUICK
BROKAW ON RECONSIDERATION.
ASSERTED PLEASE CALL THE ROLL
PAN PIPE THEN I MORRELL LEILA I
LIVE I MORE LOCK.
BUT I'VE PORTANTINO. PROJECT I
HAVE FOUR ZERO TO GRANT A
CONSIDERATION THANK YOU.
OKAY I NEXT ITEM IS ITEM NUMBER
THREE SB TEN THIRTY THREE. GOT
NO OTHER SENATOR ALLEN WELL
ACTUALLY I SEE SEND LATER IF
YOU.
SURE I'M I'M HAPPY TO TAKE IT
TAKE YOUR BREAK SEE. OKAY WELL
THAT CENTER MORE LIKE IF YOU
WISH TO TAKE A BREAK WE'LL GO
AHEAD NASSER LASER TAG GLAZER TO
USE TO COME UP HERE SO WE WILL.
HOLD OFF ON I NEVER THREE SO
WILLIAM MOVE ON TO ITEM NUMBER
SEVEN SP ELEVEN FORTY NINE.
CENTER GLACIER.
WELCOME.
THANK YOU OUT HERE PAN.
MEMBERS OF HAPPY TO PRESENT.
AS THE SENATE BILL ELEVEN FORTY
NINE WHICH WOULD OFFER THE
OPTION OF A FULLY MATCH DEFINED
CONTRIBUTION RETIREMENT PLAN.
TO NEWLY HIRED STATE EMPLOYEES.
I AM PROPOSING THIS PROGRAM. UP
BECAUSE OF BE BETTER THAN THE
STATUS QUO FOR THE MAJORITY OF
YOUNGER EMPLOYEES COMING INTO
STAE GOVERNMENT'S WORKFORCE
TODAY.
BUT THAT'S NOT ALL.
IT WOULD ALSO BE A MODEST STEP
TOWARD STABILIZING THE STATE'S
RETIREMENT OBLIGATIONS.
AND REDUCING THE CHANCE OF
UNFUNDED LIABILITIES IN THE
FUTURE.
AND THEN WE GO THROUGH THOSE TWO
POINTS IN A LITTLE BIT MORE
DETAIL.
AS I THINK THAT EVERYONE HERE
KNOWS OUR CURRENT SYSTEM UNDER
OUR CURRENT SYSTEM AN EMPLOYEE
WHO LEAVES STATES SERVICE BEFORE
THE RETIREMENT AGE.
GET A REFUND OF THEIR OWN
CONTRIBUTIONS TO CALPERS.
BUT THEY MUST LEAVE BEHIND THE
CONTRIBUTION THE STATE IS MADE
ON THEIR BEHALF.
BECAUSE THIS IS SUCH A TERRIBLE
DEAL MOST EMPLOYEES DECLINE THAT
REFUND. AND LEAVE ALL THEIR
CONTRIBUTIONS WITH CALPERS.
AND WAIT UNTIL THEY ARE AGE
SIXTY TWO TO COLLECT A PENSION.
BUT FOR EMPLOYEES WHO WORK FOR
THE STATE FOR LESS THAN HALF OF
THEIR CAREERS THIS OPTION. IS
NOT A GOOD ONE.
THEIR PENSIONS AS BASED ON A
PERCENTAGE OF ALL OF THEIR LAST
YEAR'S.
OF SALARY AND IT'S FROZEN IN
TIME.
UNTIL THEY RETIRE.
WELL THEY ARE OFF WORKING
ELSEWHERE FOR TWENTY OR THIRTY
YEARS IN SOME CASES.
THE VALUE OF THEIR STATE PENSION
IS GRADUALLY EATEN AWAY BY
INFLATION.
BY THE TIME THEY REACH
RETIREMENT AGE THE BUYING POWER
OF THEIR BENEFIT.
HAS SHRUNK TO ONLY A FRACTION OF
WHAT IT WAS. WHEN THEY LEFT
STATE SERVICE.
AND THIS IS NOT SOMETHING THAT
AFFECTS JUST A FEW.
ACCORDING TO CALPERS
THEIR OWN NUMBERS ABOUT SIXTY
PERCENT OF THE TWENTY FIVE YEAR
OLDS HIRED IN A GIVEN YEAR.
WE'LL BE GONE FROM STATE SERVICE
FOR THAN FIFTEEN YEARS.
THAT MEANS OUR CURRENT SYSTEM IS
SACRIFICING THEIR RETIREMENT
SECURITY.
IN ORDER TO SUBSIDIZE THE
BENEFITS WE OFFER TO EMPLOYEES
WHO SPEND THEIR ENTIRE CAREERS
WITH THE STATE.
AND MY PLAN HAS BEFORE YOU IN
THIS BILL ADDRESSES THIS ISSUE.
NEW STATE EMPLOYEES WOULD BE
OFFERED THE CHOICE.
THE CHOICE.
OF ENTERING THE TRADITIONAL
CALPERS PLAN OR OPTING FOR A
DEFINED CONTRIBUTION PLAN.
THEY WOULD CONTROL THEIR OWN
PLAN. AND IT WOULD BE FULLY
PORTABLE.
THESE EMPLOYEES WOULD CONTRIBUTE
THE SAME PERCENTAGE OF THEIR
PAYCHECK THAT THEY WOULD SEND A
CALPERS. IN THE TRADITIONAL
PLAN.
AND THE STATE WOULD SET ASIDE
THE SAME AMOUNT IT DOES NOW FOR
NORMAL COSTS.
OTHER EMPLOYEES PENSION AND THE
DEFINED CONTRIBUTION PLANS.
THE EMPLOYEE WOULD THEN CHOOSE
FROM A MENU OF INVESTMENT
OPTIONS.
INCLUDING SEVERAL DATE TARGETED
FUNDS TO DESIGNATE THAT THAT
SUITS ME DATE TARGETED FUNDS
DESIGNATED TO MANAGE FINANCIAL
RISK AS THEY GROW. AND AGE.
AS THEY MOVE CLOSER TO
RETIREMENT.
EMPLOYEES WHO CHOOSE THE NEW
PLAN WOULD ALWAYS BE VESTED IN
THEIR OWN CONTRIBUTIONS.
AND THEY WOULD FULLY VAST IN THE
EMPLOYERS CONTRIBUTIONS AFTER
FIVE YEARS.
THAT POINT THE EMPLOYEE WOULD
HAVE THE OPTION TO CHANGE THEIR
MIND.
THEY WANTED TO THEY COULD
TRANSFER THEIR FUNDS TO CALPERS
SYSTEM. AND CONTINUE ON THIS IT
IT THE AS IF THEY HAD BEEN IN
THE PLAN. ALL ALONG.
IF THEY CHOOSE TO REMAIN IN THE
DEFINED CONTRIBUTION PLAN UNLESS
STATE SERVICE LATER.
THEY COULD WITHDRAW ALL OF THEIR
CONTRIBUTIONS THE EMPLOYEE
EMPLOYERS CONTRIBUTIONS AND ALL
OF THEIR INVESTMENT EARNINGS.
IT'S STILL INVEST THIS MONEY
ELSEWHERE AND GROW IT INTO A
LARGER NEST EGG UNTIL THEY'RE
READY TO RETIRE.
FOR MOST YOUNGER EMPLOYEES
ENTERING THE WORKFORCE TODAY
THIS PLAN WOULD BE BETTER FOR
THEM THAN THE STATUS QUO.
BECAUSE THEY'RE MORE LIKELY TO
CHANGE EMPLOYERS AT SOME POINT
IN THEIR CAREER.
OUR CALCULATIONS SHOW THAT FOR
YOUNGER EMPLOYEES WHO LEAVE THE
FOR THEIR FIFTEENTH YEAR IN THE
STATE.
THAT'S PLAN WOULD BE BETTER THAN
THE CURRENT PLAN. IF THERE
INVESTMENT SIMPLY ON THE AVERAGE
OF THE LAST FORTY YEARS OF THE
DOW JONES STOCK. EXCHANGE INDEX.
AND THAT AVERAGE GANG WHICH IS
FIVE POINT TWO PERCENT PER YEAR.
IS FAR MORE CONSERVATIVE THAN
CALPERS USES TO PROJECTED SOUND
INVESTMENT PERFORMANCE.
I'M SURE YOU'LL HEAR THAT.
OPPONENTS OF THIS BILL WILL
POINT OUT THAT THIS PLAN WILL
SHIFT LONG TERM INVESTMENT RISK.
FOR THIS PORTION OF THE
EMPLOYEES RETIREMENT FROM THE
TAXPAYER TO THE EMPLOYEES WHO
CHOOSE TO CONTROL AND MANAGE
THEIR OWN RETIREMENT PLAN.
THAT IS WHY THIS PLAN WOULD
SLOWLY REDUCE IF NOT ELIMINATE
THE STATE'S EXPOSURE TO FUTURE
UNFUNDED PENSION LIABILITIES.
BUT THIS IS A TRADE OFF THAT NEW
EMPLOYEES ESPECIALLY YOUNGER
ONES SHOULD BE ALLOWED TO MAKE
IF THEY DESIRE.
pRISK THE GET UP THE RIGHT TO A
MUCH BETTER RETIREMENT OPTION IF
THEY LEAVE BEFORE RETIREMENT AGE
AS I MENTIONED SO MANY OF THIS
EMPLOYEES IN STATE GOVERNMENT DO
SO.
AND EXPERIENCE SHOWS THAT MANY
NEW EMPLOYEES WHO WANT TO TAKE
THE STRAIGHT OFF.
OUR PROPOSALS MODELED AFTER ONE
THE UNIVERSE YOU CALIFORNIA'S
OFFERED ITS NEW EMPLOYEES SINCE
TWO THOUSAND SIXTEEN.
SINCE THAT DATE THIRTY SEVEN
PERCENT OF NEW HIRES AT THE
UNIVERSITY OF CALIFORNIA HAVE
CHOSEN THE DEFINED CONTRIBUTION
OPTION.
OUR EMPLOYEES ARE NOT CHILDREN
THEY ARE ADULTS.
AND NEITHER WE NOR THE UNIONS
THAT REPRESENT THEM SHOULD BE
AFRAID TO LET THESE EMPLOYEES
MAKE FULLY INFORMED CHOICES.
ABOUT WHAT IS BEST FOR
THEMSELVES AND THEIR FAMILIES.
WANT TO THANK THE COMMITTEE FOR
THEIR ANALYSIS OF THIS BILL. AYE
URINALYSIS HIGHLIGHT SOME
TECHNICAL ISSUES WITH THE BILL
LANGUAGE AND I'D BE PLEASED TO
ADDRESS THOSE GOING FORWARD
SHOULD THE COMMITTEE DECIDED
MOVE THIS BILL LAW THANK YOU TO
BE HAPPY TO ANSWER QUESTIONS.
GREAT THANK YOU.
WITNESSES A SUPPORT.
OBJECTION IDENTITY AND FEVER.
MISTER CHAIRMAN MEMBERS GOOD
AFTERNOON DAVID WOLF WITH THE
HOWARD JARVIS TAXPAYERS
ASSOCIATION IN SUPPORT OF THE
BILL. ARM.
MISTER CHAIRMAN I THINK IT'S
IMPORTANT TO REMEMBER WHAT THE
SPELL AS THIS IS VOLUNTARY THIS
IS AN OPT AND.
IT'S REALLY THAT SIMPLE. THE KEY
WORD HERE I THINK IS
FLEXIBILITY.
OKAY FLEXIBILITY FOR NEW
EMPLOYEES ESPECIALLY MONNING
ELSE LIKE MYSELF INDIVIDUALS
THAT MAY WELL BE IN STATE
SERVICE FOR JUST A FEW YEARS NOT
THE TWENTY FIVE THIRTY YEARS.
YOU KNOW AS IS AS IS TYPICAL AND
YOU KNOW FOR THOSE INDIVIDUALS
ESPECIALLY AS YOU KNOW MISTER
GLAZER MENTIONED THAT TIPPING
POINT. IS ABOUT YOU KNOW IT
FIFTEEN TWENTY YEARS DEPENDING
ON WHAT RETIREMENT PLAN THAT
YOU'RE ACTUALLY AND. FOR
INDIVIDUALS WORKING LESS THAN
THAT IT'S CLEAR YOU KNOW AGAIN
THE OFTEN DEFINED CONTRIBUTION
MODEL MENTIONED HERE. YOU KNOW
IS A BETTER SYSTEM FOR THEM.
AND SO WHY NOT GIVE THEM THAT
OPTION BECAUSE THAT'S ALL THIS
BILL IS AN OPTION IF AND IF THEY
DECIDE AFTER FIVE YEARS THEY
WANT A GOOD TO A DEFINED BENEFIT
PROGRAM HAVE OUT OPTIONS WELL.
SO FLEXIBILITY BEING THE KEYWORD
WERE PROVIDING FLEXIBILITY FOR
MILLENNIALS LIKE MYSELF ASK
FERNANDO.
YOU KNOW IN THE SUPPORT SEEN
ANOTHER.
WITNESSES IN OPPOSITION.
A COUPLE OF THE.
RIGHT.
MIXTURE AND SENATORS TERRY BROWN
ON BEHALF OF SEIU CALIFORNIA
IPAD NUMEROUS CONVERSATIONS WITH
THAT A.
ME AUTHORED THE AUTHOR STAFF A
ABOUT THIS BILL.
.
AND. LET ME JUST SAY. AND I HAD
THE ANALYSIS UP POINTED OUT VERY
WELL.
IN EVERY VIRTUALLY EVERY STUDY
ACROSS THE COUNTRY THAT YOU KNOW
THE FOUR ONE K. PROGRAMS FIRST
WHAT WERE NEVER MEANT. TO
REPLACE A DEFINED BENEFIT PLAN
AS A PENSION THEY WERE ALWAYS
MEANT TO BE IN ADDITION TO THEM
AND NOT A REPLACEMENT. AND THE
MAIN REASON IS SERVE AT LEAST
FORTY PERCENT LESS EFFICIENT AND
THAT'S ASSUMING YOU GET THE
EXACT SAME INTEREST RATE. THE
ACTUAL ANALYSIS CITIES THAT ANY
INDIVIDUAL INVESTING ON THEIR
OWN DOES FAR WORSE. THERE AND.
THAT. THEY'RE AYE ACT CALPERS
WERE HIRED BY CALPERS OR ANY
OTHER PROFESSIONAL PENSION FUND.
THIS IS A DISASTER WAITING TO
HAPPEN.
AND FOR ANYBODY WHO LEAVES
AFTER FIVE YEARS THEY ARE VESTED
THEY GET BOTH SIDES OF THE
PENSION THEY CAN TAKE A LUMP SUM
AND ROLAND METAPHOR WHEN QUE. IF
THEY CHANGE EMPLOYERS THIS WILL
REALLY ONLY IMPACTS
THOSE WHO LEAVE IN THE FIRST
FIVE YEARS OF EMPLOYMENT. THIS
IS MEANT TO BE AN INCENTIVE FOR
LONG TERM PUBLIC SERVICE. NOT A
REWARD FOR JUMPED SHIP FOR THAT
REASON OR POST.
MISTER CHAIRMAN MEMBERS TECH TOP
AND FOR THE PROFESSIONAL
ENGINEERS IN CALIFORNIA
GOVERNMENT AND THE CALIFORNIA
ASSOCIATION OF PROFESSIONAL
SCIENTISTS.
IN OPPOSITION I THINK IT IS A
HIGHLY DEBATABLE THE THE PROMISE
THAT SOMEHOW.
STATE EMPLOYEES ARE BETTER
SERVICE BY IT FOR ONE QUE ARE. A
DEFINED CONTRIBUTION MODEL WE DO
NOT AGREE IT WAS. ECHOING MISTER
BENNETT WAS NOT TOO LONG AGO THE
ADVENTURES OF THE FOUR ONE QUE.
A. AT DENOUNCED IT AS A FAILURE
AND PROVIDING RETIREMENT
SECURITY FOR PEOPLE WHO USE THEM
PRIMARILY AS. A THEIR THEIR
PRIMARY FORM OF RETIREMENT. A I
GUESS FOR BOTH PAGAN CAPS WE
WILL GO BACK TO THE START WHICH
IS THIS IS NOT A SUBJECT.
BUT SHOULD BE SUBJECT OF
LEGISLATION THAT SHOULD BE A
SUBJECT OF COLLECTIVE
BARGAINING.
THE STATE OF CALIFORNIA WOULD
LIKE TO SEEK A DEFINED
CONTRIBUTION PLAN FOR NEW
EMPLOYEES THEY ARE WELL WITHIN
THEIR RIGHTS TO DO SO. WE WOULD
URGE YOU KNOW THE.
AWARENESS IS IN OPPOSITION
MISTER CHAIRMAN MEMBERS WHICH I
TO PROSECUTE DE CALIFORNIA
SCHOOL EMPLOYEES ASSOCIATION.
IN ADDITION TO THE ARGUMENT
THAT'S BEEN MADE ARM.
YET DISPOSAL ESSENTIALLY SHIFT
THE ENTIRE RACE TO BE EMPLOYEES.
JUST IMAGINE IF YOU TRY TO
RETIRE RIGHT AROUND TWO THOUSAND
EIGHT.
A FULL ONE CASES THAT WOULD
JUST DESTROY YOUR SAVINGS.
.
WE WILL ALSO WORRY THAT KILL A
PLOY TO CHOOSE TO TEACH DC PLAN
COULD BE PENALIZED.
HI THE SP THE ELEVEN FOURTEEN I
REQUEST EMPLOY TO ONLY MAKE
CONTRIBUTIONS ABNORMAL BECAUSE.
EMPLOYEES WHO OPTED TO THIS PLAN
WILL DEFINITELY RECEIVE A
SUBSTANTIALLY LOWER EMPLOYER
CONTRIBUTION TOWARD THEIR
RETIREMENT.
AB WITHOUT GOING ALL THE
ARGUMENTS THAT WE'VE LISTED IN A
LETTER TO THE COMMITTEE ENTITY
AUTHOR.
BUT WE SIMPLY WOULD SAY THAT TO
GO TO MANY UNANSWERED QUESTIONS
STILL FOR THIS BILL IN ADDITION
TO PUBLIC DID NOT INVESTMENT
OPTIONS BE. BESIDE IT LOOK AT
THE CHARGES IN THE FEES TO THE
EMPLOYEES.
ARM UNDER THIS BILL EMPLOYEES
ARE. WILL BE EXPOSED TO THE
VOLATILE MARKETS ARM UNSPECIFIED
FEES AND ARE. NOT GUARANTEED ANY
TRAINING ADVICE ON HOW TO DO
THIS.
PAUL DOES REASON WE OPPOSE THE
BILL THANK YOU.
STARING XIN WITH RIVERSIDE
SHERIFF'S ASSOCIATION WOULD ALSO
LIKE TO UPLAND OUT IN OPPOSITION
THAT.
WERE CONCERNED ABOUT FEWER
EMPLOYEES PARTICIPATING AND
PURRS AND THERE'D BE LESS MONEY.
INCREASED RISK AND WE THINK
THAT THE. SYSTEM THE WAY TO GO
WOULD PREFER EVERYONE INTO.
BECAUSE THEY WERE WERE AT. THOSE
PARTICULAR MUCH
THANK YOU.
MISTER CHAIR MEMBERS JOSH WILL
GO GO WITH THE AMERICAN
FEDERATION OF STATE COUNTY
MUNICIPAL EMPLOYEES ALSO IN
OPPOSITION.
FUTURE MEMBERS COULD BE PRESIDED
CALIFORNIA ASSOCIATION OF
PSYCHIATRIC TECHNICIANS FOR ALL
THE REASONS PREVIOUSLY STATED WE
HEARD POP OPPOSITION.
MR CHAIRMAN MEMBERS OF THE
COMMITTEE CHRISTY BAMA BEHALF OF
THE CALIFORNIA PROFESSIONAL
FIREFIGHTERS IN OPPOSITION.
THANK YOU MISTER CHAIR MEMBERS
MUCH SEMEN WITH CALIFORNIA LABOR
FEDERATION ALSO IN OPPOSITION.
MISTER CHAIRMAN MEMBERS SYLVIA
SO WE SHAUN BEHALF FOR THE
CALIFORNIA FACULTY ASSOCIATION.
IN OPPOSITION THINKING.
YOU.
MISTER CHAIRMAN MEMBERS ATTORNEY
WITH ORANGE COUNTY EMPLOYEES
ASSOCIATION RETIRED PUBLIC
EMPLOYEES VERSION POOR ACT. OF
WERE OPPOSED I HAVE A LOT OF
EXPERIENCE WITH FOR WHEN KATE
PLANTS BECAUSE I'M NOT ACTUALLY
A PUBLIC EMPLOYEE SO I HAVE ONE.
BUT I CAN TELL YOU I WISH I HAD
A DEFINED BENEFIT PROGRAM UNDER
PURRS AND IF HE WOULD HAVE MEANT
HIS BILL SO THAT PEOPLE LIKE ME
COULD BE IN PARIS. YOU KNOW I'D
LIKE PURSUE MANAGER MANY BECAUSE
THEY DO A LOT CHEAPER FOR ONE AS
JERRY BROWN AND MENTION IS VERY
INEFFICIENT VERY COSTLY.
OKAY. ALRIGHT.
OF QUESTIONS COMMITTEE MEMBERS.
UP IN MY PLACE CENTER LEYVA
THERMAL.
THE CUBA MISTER CHAIR.
SENATOR A GLAZER I MEAN I HAVE
TO RESPECTFULLY OPPOSE YOUR BILL
TODAY.
I JUST THINK THAT WE NEED TO BE
DOING EVERYTHING WE CAN TO GET
OUR YOUNG PEOPLE INTO DEFINED
BENEFIT PLANS.
YOU'RE RIGHT THEY'RE NOT
CHILDREN.
THEY DO BUT THEY DON'T ALWAYS
UNDERSTAND THAT THEY WILL
SOMETIMES BE OLD LIKE YOU AND I
AND HOW IMPORTANT IT IS TO HAVE
A PENSION. I REMEMBER WHEN I
STARTED IN NINETEEN EIGHTY FIVE
WITH A ALPHA BETA AND WOOD
SOMEONE TOLD ME OH EVERYDAY THE
YOU'RE WORKING YOU'RE CREATING A
PENSION.
AND MY FIRST QUESTION I WAS
SEVENTEEN I SUPPORT THE PENSION.
AND THEY TOLD ME WHAT IT WAS AND
I REMEMBER FOR YEARS LATER
TALKING TO PEOPLE TALKING TO
PEOPLE WHO THOUGHT THEY WERE
GOING TO START IN THE INDUSTRY
AND THEY'RE JUST GOING TO STAY
THERE FOR A COUPLE YEARS.
AND-THEN THIRTY YEARS LATER HERE
THEY WERE AND I SIT AND LOOK
EVERYDAY THAT YOU'VE WORKED
YOU'VE ACCRUED PENSION THIS IS A
PART OF YOUR. OF YOUR
COMPENSATION AND IT'S A REALLY
BIG DEAL FOR ONE KAY'S PUT ALL
THE RISK ON THE WORKER THEY PUT
ALL THE RISK ON THE PERSON
PUTTING THEIR MONEY AND. WHEN I
WAS STILL WITH UFCW AND I WAS
THE PRESIDENT THE LOCAL OUR
GIRLS WERE LITTLE THEY'RE
PLAYING SOCCER AND I APOLOGIZE I
WAS HAVE STORIES.
AND I REMEMBER ONE OF THE MOMS
WHO STARTED WAS ON THE TEAM
WORKS FOR ALBERTSONS AND SHOES
GETTING READY TO SHOOT HEARD OF
A WOMAN WHO'S READING GETTING
READY TO RETIRE FROM. MERVYN'S
WHICH WAS A DEPARTMENT STORE IN
SOUTHERN CALIFORNIA TO THEY WENT
OUT OF BUSINESS.
AND SHE SAID.
CONNIE AS THE PRESIDENT OF MY
UNION I JUST WANT YOU TO KNOW
THAT THIS WOMAN IS RETIRING WITH
A HUNDRED THOUSAND DOLLARS IN
HER FOR ONE QUE WHY DON'T I HAVE
SOMETHING LIKE THAT AS A THIRTY
YEAR WORKER AT ALBERTSON'S. AND
SO WE HAVE SOMETHING BETTER I
SAY BECAUSE THAT FOR ONE QUE A
HUNDRED THOUSAND DOLLARS SOUNDS
AWESOME AND IT'S APPEALING TO
MANY OF US BUT I SAID IF YOU DO
IT RIGHT YOU SHOULD LIVE OFF THE
INTEREST. PRESIDENT LET'S AY
YOU GET TEN PERCENT RETURN RATE
ON THAT HUNDRED THOUSAND DOLLARS
WHICH IS HIGHLY UNLIKELY I SAID
THEN THAT'S TEN THOUSAND DOLLARS
A YEAR YOU'RE SUPPOSED TO LIVE
OFF OF. AS THE CAN YOU LIVE ON
THAT AND SHE SAID NO I SAID
YOU'RE PENSION WILL BE GREATER
THAN THAT FOR THE REST OF YOUR
LIFE I SAID AND WHEN YOUR FRIEND
HOUSE TO. CUT INTO THAT NEST EGG
A HUNDRED THOUSAND DOLLARS THAN
ECHO SOUND IN NINETY THEN ECHO
SOUND EIGHTY I SAID AND BEFORE
THEPERSON KNOWS THAT THEY HAVE
NO MONEY TO LIVE ON. SO I JUST
THINK WE NEED TO ENCOURAGE
PEOPLE TO BE A FAR PART OF A
DEFINED BENEFIT PENSION WE KNOW
THAT THEY HAVE BEEN.
NO ONE EMPLOYERS DON'T LIKE
THEM BECAUSE THEY ARE COSTLY BUT
WE HAVE TO THINK ABOUT SOCIETY
AND WE HAVE TO THINK ABOUT WHAT
IS IT WE WANT WHEN OUR PEOPLE
RETIRE. AND THEIR OLD BECAUSE
ALL OF US DEAL WITH IT UP HERE
RIGHT NGUYEN ON SENIORS CAN'T
AFFORD FOOD THEY CAN'T AFFORD
HOUSING. SO MANY OF THOSE
SENIORS DON'T HAVE A DEFINED
BENEFIT PENSION SO I WOULD JUST
HATE TO SEE US DO SOMETHING ELSE
THAT WOULD ENABLE. US TO TO HARM
DEFINED BENEFIT PENSIONS SO I
APPRECIATE YOU ARE THINKING
ABOUT GIVING OUR YOUNG PEOPLE
OPTIONS. ARE AND I JUST HAVE TO
SAY MR WOLF WHEN YOU USE THE
WORD FLEXIBILITY AND MY TWENTY
YEARS WITH THE.
LABOR MU MOVEMENT FLEXIBILITY
USUALLY MET MY MEMBER WAS
GETTING SCREWED SO I WILL
RESPECTFULLY OPPOSE.
I THINK YOUR QUESTION THERE
SOMETHING WE WILL INSIST THAT
ARE MORE LIKE. OKAY CENTER
WARLOCK AND WAS AND I WILL TRY
TO ASK A QUESTION. WELL ACTUALLY
WE BEFORE ALLOWED TO MAKE
STATEMENTS TO THE COMMITTEE AS
WELL. NOW MAKE A STATE TO THEN.
SO.
.
SENATOR. GLAZERS ARE YOU'RE NOT.
COTTON T. FEAR THIS IS NOT A NEW
IDEA HOW MANY OTHER STATES OF.
ADOPTED DEFINED CONTRIBUTION
PLANS.
ETCETERA I DON'T HAVE THE EXACT
NUMBER BUT CERTAINLY.
.
A NUMBER OF THEM THAT HAVE GONE
IN THAT DIRECTION AND CERTAINLY
IN SAN DIEGO THE VOTERS
MANDATED.
PART OF THEIR A PUBLIC EMPLOYEE.
BENEFIT THAT IT WAS A CHANGE
BECAUSE.
ADDS THAT THE PENSION BENEFITS
I STARTED UP EATING UP MORE AND
MORE THAT. OF THE CITY BUDGET
THEY FELT THAT THEY HAD NO
CHOICE BUT TO FIND AN
ALTERNATIVE.
BECAUSE IT IS GREAT TO GET FOR
PEOPLE WHO WORK THEIR WHOLE LIFE
IS A VERY IMPORTANT AND.
CERTAINLY AGREE WITH THAT THE
SENATOR FROM THE INLAND EMPIRE
THAT.
YOU HAVE. RETIREMENT.
PENSIONS AT WHAT IT WHATEVER%
FORM ARE REALLY IMPORTANT AND
PEOPLE DESERVE IT.
BUT IT AT THE END OF THE DAY
IT'S REALLY ABOUT WHAT CAN YOU
AFFORD AND I THINK THE CHALLENGE
THAT.
THE STATES OF LOOKED INTO AND
AND CERTAINLY SANDIEGO EXAMINED
WAS THAT.
IT HAS TO BALANCE OUT AND.
UNDER THE CURRENT.
DEFINED. BENEFIT. ALL THE RISK
IS ON THE TAXPAYERS AND THAT
WHAT WE HAVE EEN. IS THAT.
AS THE TAXPAYERS ARE REQUIRED
TO PUT MORE MONEY INTO THAT
SYSTEM THAT THERE. IT CONSTRAINS
OTHER BENEFITS THAT THE THAT THE
CITY STREET YOU KNOW DEMANDS
FROM. LOCAL AND STATE GOVERNMENT
INTO.
BUT IT IS IT IS HOUSTON OUT OF
MANY MANY OTHER PLACES AND I
THINK TO TO GOOD EFFECT.
SO THEN HOW WAS
THE PLAN ESTABLISH FOR THE
UNIVERSITY OF CALIFORNIA.
I WAS ADOPTION THAT WAS GIVEN TO
THEM THERE THAT SOME GREATER
AUTONOMY THAN WE DO HERE AND
STATE GOVERNMENTS AND.
AND IT'S IT'S IT'S BARGAINED.
HOW WITH THEIR EMPLOYEE GROUPS
OF THE SUGGESTION BY ONE OF THE?
OPPONENTS EARLIER THAT IT SHOULD
BE SUBJECT TO COLLECTIVE
BARGAINING I'M I'M IN AGREEMENT
ON THAT.
AND I THINK THAT IF THE IF THE
IF THERE'S A REQUIREMENT THE
BILL BE AMENDED TO. GIVEN THAT
RIGHT NEGOTIATED IN COLLECTIVE
BARGAINING THE I'M FINE WITH
THAT.
BUT THAT'S WHAT THEY HAVE DONE
AS I UNDERSTAND IT THE
UNIVERSITY CALIFORNIA'S THAT
THEY BARGAINED IT.
AND THAT OPTION THAT HAS NOW
BECAME. AVAILABLE.
AND AS I MENTIONED THIRTY SEVEN
PERCENT OF THE NEW EMPLOYEES
HAVE CHOSEN THAT OPTION.
AND WE.
IMAGE OR NEW EMPLOYEES NEW
EMPLOYER EMPLOYEE THAT'S A
PRETTY STARTLING NUMBER THIRTY
SIX PERCENT THAT.
PRETTY AMAZING BUT.
THERE WAS THAT I THINK A COULD
JUST MY RIB MEMORY AND TRYING TO
RECALL IT DIDN'T SAY GOVERNOR
BROWN SAY YOU YOU HAVE TO OFFER
IN DC. IN ORDER TO FUND THE DB
WAS SIR.
WAS THAT SORT OF IMPOSED ON ON
THE UC SYSTEM WHEN THEY WERE.
NECKLINE WHEN JANET THE PAUL
TIME IT WAS WORKING WITH THE
GOVERNOR I'M. I DON'T THE
CAMERAS TO IMPOSE ANYTHING ON
THE UNIVERSITY CALIFORNIA
BECAUSE THERE. AYE AYE AYE AYE
CREATION OF OUR CONSTITUTION SO
I THINK YOU CAN MAKE SUGGESTIONS
TO THEM BUT.
THESE ARE CHOICES THAT THEY HAVE
MADE AS I UNDERSTAND
SO I WENT THROUGH COLLECTIVE
BARGAINING AT THE UC I BELIEVE
THAT'S HOW THEY'VE IMPLEMENTED
IT THEMSELVES.
BY IS YOUR FURY ANSWERED IN YOUR
COMMENTS.
.
THE OTHER POINT THAT WAS
SUSTAINABILITY AFFORDABILITY
AND.
WORST OF WHO'S WHO'S CARRYING
THE RISK AND SO.
WE DID.
WE DO THAT.
IDC PLANNED FOR.
FOR EMPLOYEES BACK IN TWO
THOUSAND NINE AT THE COUNTY
ORANGE.
NEGOTIATED THAT WE ALSO HAD A
REALLY GOOD RESPONSE SO.
.
I'LL TELL STORY TO.
THE GOVERNOR SCHWARZENEGGER PUT
TOGETHER A PUBLIC EMPLOYEE POST
EMPLOYMENT COMMITTEE.
TO REVIEW. THE LIABILITIES OF
THE STATE WAS FACING IT. FROM
OUR HAD THE GOOD FORTUNE OF
BEING ASKED TO SPEAK TO THE
COMMITTEE. AND I WAS ON THE
PANEL WITH.
JOSEPH CURVE WHO WAS THE HEAD
OF THE FIREFIGHTERS AND.
.
HOW CAMANCHE UNDER HIS FACE FROM
ME PRETTY MUCH MOST CA?
MIDDLE COME TO ME IN A SECOND.
AND BUT IT WAS JUST OF CURRENT
WAS MAKING A PRESENTATION ABOUT
HOW THEY HAD CONVERTED. THE
RETIREE MEDICAL FROM DEFINED
BENEFIT TO DEFINED CONTRIBUTION.
RUN CUNNINGHAM OPPO RACK WAS ON
THE COMMITTEE. ANY KIND OF SAID
I THOUGHT WE WEREN'T GOING TO GO
TO DEFINED CONTRIBUTION
I THOUGHT WE HAD A DEAL.
I THOUGHT THAT WAS VERY TELLING.
BUT JOKER HAD TO LET HIM KNOW.
THAT WE'RE TALKING ABOUT THE
RETIREE MEDICAL NOT THE PENSION
PLAN USER OKAY OKAY FINE.
SO I WANT TO APPLAUD YOU FOR
PROPOSING A DC PLAN AND I WILL
MOVE.
THIS ITEM MISTER CHAIR.
OKAY WELL CERTAINLY BEEN MOVED.
OTHER QUESTIONS.
SO.
.
THAT'S OF SOME PLEASURE I
CERTAINLY APPRECIATE TO YOU
BRING THIS IDEA FOR TO HAVE TO
HAVE SOME SKEPTICISM ABOUT IT.
HE DIDN'T WANT TO QUESTIONS I
GUESS IN TERMS OF THE DEFINED
CONTRIBUTION.
WITH THIS ALSO PARTITION OF US
ALSO BE ADMINISTERED BY CALPERS
I GUESS I MEAN THEY WOULD
PROVIDE THE FUNDS. CONTRACT OUT
I MEAN WHAT IT IS THAT CAN BE
OPERATED ARE.
BY CALPERS HOW DO YOU SEE THIS
THE. THE THE THE DEFINED
CONTRIBUTION PORTION WORKING
BECAUSE SOUNDS LIKE IT'S VERY
CLOSELY TIED RIGHT SO WHAT
HAPPENS IS THAT YOU COME AND YOU
CHOOSE WHICH WHERE YOU WANT TO
GO FIVE YEARS LATER YOU CHOOSE
AGAIN WHICH WAY YOU WANT TO GO.
YOU KNOW THE MONIES CAN BE
SITTING IN A POT SOMEWHERE WHO'S
WHO'S OVERSEEING HIS OVERSEEING
THIS.
THIS SIDE CALPERS OR SOME OTHER
DECENT VISION THIS I TAKE THAT
COUNSEL FROM THE PEOPLE SMARTER
THAN ME LIKE YOU MISTER CHAIRMAN
AND YOUR STAFF AND OTHER STUFF.
GUIDE HOW THIS THIS THING WAS
FORWARD PRACTICALLY.
I THINK THERE'S PLENTY OF
OPTIONS THERE IN STATE
GOVERNMENT TERMS OF HOW IT'S
ADMINISTERED.
OKAY ALRIGHT.
.
SO I GUESS YOU KNOW AND AND WE
HAVE CERTAINLY I THINK THERE ARE
SOME DETAILS IF WE WERE GOING TO
TRY TO DO THIS BUT I'D. DO I
STEP BACK AND I KNOW THAT MY
COLLEAGUES HAVE SPOKEN BEFORE.
I ATE THAT.
YEAH I I AM I HAVE I DO HAVE
SOME CONCERNS ABOUT.
.
THE IMPACT THIS HAS.
ON.
SERVE THE LAW IS. A COUPLE
THINGS A ONE NOW I THINK IT'S
BEEN TESTIFIED TO IS.
.
THE BENCH THE PENSION CERTAINLY
IS A.
IT IS AN INCENTIVE FOR A MORE
LONG TERM SERVICE HIM WITH THE
VIEW THAT AS A POSITIVE OR NOT
DATA I GUESS IF YOU'RE NOT
LOOKING FOR LONG TERM SERVICES
EMPLOYEE THAT MIGHT NOT THIS
WOULD BE A POSITIVE BUT I THINK
FOR THE STATE. YOU KNOW PEOPLE
BEING STAY IN PLACE BUT I ALSO
YOU KNOW PEOPLE TALK ABOUT RISK
TO TAXPAYERS AND AND UNDERSTANDS
ONLY ONE RISK THE TAXPAYERS IS
OF COURSE YOU KNOW HOW DO YOU
PAY FOR AND MAINTAINING. THE
PENSIONS SO THAT'S CERTAINLY A
RISK THAT TE TAXPAYERS TAKE ON.
BUT I ALSO SEE RISK OF TAXPAYER
OF THE FINE CONTRIBUTION WHICH
IS IS THAT.
AT LEAST IN THIS STATE AND I
THINK IN THIS COUNTRY EVEN.
.
WHEN.
.
BASICALLY WHEN PLANS FALL
ARRIVES RIGHT YOUR VIEW GOOD DC
WHATEVER ELSE YOUR SAVINGS OR.
WHATEVER THINGS FALL AWRY AND
ALSO WE HAVE PROGRAMS LIKE HOW
WORKS AND OTHER TYPES OF YOU
KNOW PUBLIC PROGRAMS TO HELP
PEOPLE WHO ARE WHO ARE POOR AND
DISADVANTAGED AND AND AND
FRANKLY SENIORS.
BEFORE.
ARE OFTEN IN THAT CAN OFTEN BE
IN THAT POSITION TO AND. AS IT
AND SO WHEN THE THINGS TO ME ONE
THE PUBLIC VALUES OF A
RETIREMENT SYSTEM INCLUDING A
DEFINED BENEFIT BUT HAVING BE
SURE IS A WRIST SOLID RETIREMENT
SYSTEM IS IS THAT.
WHAT HAPPENS IS WERE HELPING UP
FRONT TRYING TO AVOID FUTURE
COSTS FARTHER DOWN THE LINE
BECAUSE OF THE WAY UNLESS WE
DECIDE SOCIETY THAT YOU KNOW
WHAT?
CHANCE WAS WRONG TO YOU BAD LUCK
YOU JUST YOU KNOW WE ABANDONED
YOU IN OUR SENIOR UP AYE AYE ON
THE STREETS AND I DON'T THINK
THAT'S THE SIZE SIDE WE ARE AND
I KNOW THAT'S NOT WHAT YOU WANT
IT TO BE SO.
I THINK THAT THAT BUT THAT'S A
THAT THAT'S I THINK A CHALLENGE.
WHEN YOU.
IT.
THAT THAT'S ONE OF CENTRAL
CHALLENGES AND YOU AYE THAT
THAT.
OUT ON ONE LEVEL YOU KNOW ON THE
FINE CONTRIBUTION AND GIVING
PEOPLE CHOICES I THINK A.
NOW THAT'S VERY ATTRACTIVE.
DISABLE KILLING GIVE PEOPLE
CHOICE I'LL TELL YOU I DON'T
BREAK
BEFORE THE GREAT RECESSION.
NOW OUT PHYSICIAN LEVEL LIKE
ISOLATIONS I DON'T COUNT THEY
THEY CAN WRITE OUT SOMETHING
BUT.
AND THEY'RE PROBABLY NOTA
SMART ABOUT INVESTMENT AS THEY
COULD BE THERE PRETTY
INTELLIGENT PEOPLE I WOULD.
THINK YOU KNOW.
THAT THE.
AND.
A LOT OF THEM WHEN.
OKAY RECESSION IN THE STOCK
MARKET TANKS YOU KNOW THEY ALL
MOST OF THEM ARE NOT PUBLIC
EMPLOYEES THE HEAD FOR ELAINE
QUE TYPE THINGS ARE STYLE TYPE
PHENOTYPE AND. SAVINGS.
AND THEY ARE HIT PRETTY DARN
HARD ALLY NO LOT OF PEOPLE WHO
BASICALLY WATCH DEALER TALK
ABOUT RETIREMENT AND BILL THAT
WAS GONE.
AND AND SO YOU KNOW IF THAT'S
YOUR AND AND ALSO LOOKING AT THE
DATA ON HOW MUCH PEOPLE ACTUALLY
END UP SAVING UNDER FOUR ONE
CASE AND HOW OFTEN THEY INTO
BORROWING AGAINST THEM OR TRYING
THEM EARLY ETCETERA AND THEN.
AND WE DO HAVE A CRISIS HERE IN
THIS COUNTRY WHERE WE HAVE. A
LOT OF PEOPLE WHO REALLY DON'T
HAVE ANYWHERE NEAR ENOUGH THE
SAVE FOR RETIREMENT I MEAN VOTER
SITE ABOUT SAVING ENOUGH TO LIVE
ON. AND LOVE THEM BASICALLY ARE
SUPPOSEDLY MANAGING THEIR OWN
RETIREMENT BASED ON SAFE JOBS
JUST TO GET A FIREARM QUE IRENE
OR SOMETHING THAT'S THEIR
PLAYERS AND GIVE ANOTHER OPTION
REALLY THEIR DATA HAVE ON THEIR
OWN.
AND IT AND AND I AM VERY
CONCERNED ABOUT THAT AND SO ON
YOU KNOW WHAT I.
AND I'M I'M I'M I'M CONCERNED
THAT.
THAT WE HAVE A SYSTEM THAT'S
ONLY BASICALLY YOU'RE TELLING
PEOPLE YOU KNOW YOU HAVE A
CHOICE YOU CAN HAVE A FOUR ONE
K.. OR A PENSION.
.
SETS PEOPLE UP FOR. SALE. AND IT
IS FOR FOR POTENTIAL CHALLENGES
IF THEY DECIDE THAT THEY'RE ONLY
GOING TO HAVE A FOREIGN CAN YOU
GUESS WE HAVE SOCIAL SECURITY
TOUGH LOADING OUT THERE. OWE IT
BUT.
AYE YEAH AND ACTUALLY FOR SOME
OF OUR EMPLOYEES ACTUALLY DATE
DATE THEY. ARE NOT SURE HOW THIS
WORKS FOR SOME OF THE PLACE YOU
CAN'T GET THE SOCIAL SECURITY
BECAUSE THEIR TEACHERS OR
WHATEVER BUT. I I AM JUST I I AM
AND I GUESS ASSEMBLY AS A PLAYER
BUT I THINK.
I'M AND I AM CONCERNED ABOUT
WHAT THIS WILL DO IN THE FUTURE
I THINK IT NEEDS THIS IDEA NEEDS
MORE SCRUTINY AND VETTING IN
TERMS OF THINKING ABOUT WHAT
TAMMY. THE WHAT YOU'RE TRYING TO
DO SOME IS FAIRLY
STRAIGHTFORWARD BUT WHAT THE
LONG TERM IMPACTS ARE. AT EITHER
NEEDS TO BE MORE OF A
CONVERSATION ABOUT ABOUT THAT
AND AND AND AND ALSO IN THE END
YOU KNOW WHO ENDS UP HAVING TO
PICK UP THE SLACK WHEN. THINGS
FALL APART SO WE CERTAINLY VERY
CONCERNED ABOUT WHAT'S HAPPENING
TO CALPERS AND STIRS IN LOOKING
AT THAT AND PEOPLE HAVE SOME
ANXIETY ABOUT THAT I KNOW CENTER
MORE LIKEEXPRESSES THAT TO ME.
QUITE FREQUENTLY BUT OTHERS DO
AS WELL.
BUT I ALSO WANT TO THINK ABOUT
WHAT HAPPENS WHEN SOMEONE
SAVINGS SYSTEMS FAIL AS WELL AND
WHEN WHAT THAT MEANS AND THEN
ALSO WHAT ROLE DO WE HAVE OF THE
STATE.
HOW TO USE BUDGETS OF THREE
CHAIR OF WERE KIND LOOK AT
WHAT'S THE IMPACT OF AGING AND
WHAT? THAT'S GOING TO IMPACT IT
HAS ON OUR STATE AND LOCAL
BUDGETS AS WELL.
SO.
.
SO I.
SO I GUESS A LONG WAY OF SAYING
THAT AT THIS POINT TIME I DON'T
FEEL COMFORTABLE SUPPORTING THIS
BILL.
AYE AYE AYE IT WILL ENCOURAGE
YOU TO HAVE FURTHER CONVERSATION
BE NICE TO SEE MORE AND EIGHTY
SOME MENTION THAT THEY QUICKLY
BARGAIN THIS OUT AND YOU SEE
SICK MORE CONVERSATIONS WITH. A
EMPLOYEE GROUPS OF ABOUT THIS
AND AND EIGHTIES TRYING TO DIG
UP A LITTLE MORE. RESEARCH ON.
OUR WORK ON WHAT REALLY IS THE
LONG TERM ATTACK AND BUT ALSO IF
SOMEONE CHOOSES TO DO WITH THE
FINE. CRUCIAL WHAT SHOULD BE THE
MINIMUM BUFFERS WE'VE PUT IN
PLACE TO KEEP PEOPLE FROM.
WELL IN CERTAIN SENSES TO ME
IT'S STILL A BASELINE DEFINED
BENEFIT WITH A DEFINED
CONTRIBUTION. ON TOP OF MAYBES
SOMETHING OF THAT ILK BUT MAYBE
THERE'S SOME OTHER ALTERNATIVES
THAT PEOPLE CAN. THAT HAS SOME
ROBUST RESEARCH BEHIND AND I
THINK WE SAW THE WORK OUT EEN
IF YOU WANT TO DO THIS WHAT THE
MINISTRY OF DETAILS ARE IN TERMS
OF CALPERS AND SO FORTH.
SO I'M.
OKAY. E. FOR A LITTLE GIVEN THE
XING UPDATE YES I AM ACTUALLY
GOING TO GIVE US OR GLAZER WHO I
KNOW WE CALL ME LIKE COM IT'S A
CHANCE TO PERHAPS SAY SOMETHING
WELL YOU CAN GO AHEAD AND THE
FORCE FOR CLARIFICATION. FROM
YOU OR FROM YOUR COMMENTS IF I
UNDERSTOOD THEM OKAY BY GOOD.
SHIRTS BECAUSE WE HAVE ITEM
NUMBER FOURTEEN YES WHICH IS
SECURE CHOICE FOR YOU WANT
CHANGE NAME TO CAL SABRES BUT
THAT'S A POOR ONE QUE AND I'M
SCARED OF WONDERING.
HOW YOUR?
ARGUMENTS. APPLY THERE WELL
ACTUALLY.
YOU IT WON'T HAVE. OKAY SINCE
THAT ON THE CONTENT CAL I WILL
ANSWER THAT QUESTION SO THAT WE
UNLESS YOU WANT FULL OF CONSENT
BUT NO I DON'T THINK I'M JUST
THAT LET ME JUST QUICKLY TOUCH
ON THAT I WOULD SAY IS IS THAT.
I THINK GIVEN THE STRUCTURE AND
THAT OF HOW OUT WHAT WE COULD
TRY TO DO IN THAT SPACE.
THAT IS WHAT IT IS IT'S BETTER
THAN AND THEN THAN A BASELINE OF
NOTHING BECAUSE THEY SAID WE
STILL HAVE A CRISIS WHICH WE
NEED PEOPLE TO RETIRE. DO MORE
RETIREMENT SAVINGS.
AND SO.
AS I IS I'VE MET THAT I WAS A
LITTLE DISAPPOINTED WE WERE ABLE
TO DO AS OF THE PINE BENEFIT AND
BUT I STATE AGAIN I THINK WE DO
NEED TO TRY TO ADDRESS PEOPLE
GETTING IMPROVING THEIR
RETIREMENT SAVINGS I MEAN DEBTS.
THE OVERALL GOAL AND HOW HOW TO
GET HOW TO GET THERE BECAUSE
AGAIN IN MY MIND WHAT HAPPENS IS
THAT WE AS A SOCIETY EVERY GO
GOVERNMENT IS THAT. ARE A BIT ON
THE HOOK WINDS DOES WHEN PEOPLE
AREABLE TO. SAVE FOR RETIREMENT.
OKAY SO SENATE GLAZER I
APPRECIATE YOUR PATIENCE I'VE.
PLEASE LIKE TO IT PERHAPS YOU
WANT TO RESPOND TO THERE'S
COMEDY RECEIVED HEALTH THANK YOU
THANK YOU FOR THE THOUGHTFUL
COMMENTS FROM ALL OF COMMITTEE
MEMBERS. AND I THINK WITH THEIR
WHERE WE HAVE COMMON GROUND I
WAS LIKE TO. FIND PLACES WHERE
WERE IN AGREEMENT I THINK
THERE'S A NUMBER OF THEN WE ARE
IN AGREEMENT THAT. WE KNOW THAT
FINANCIAL LITERACY IS A VERY
IMPORTANT THING. AND WE WISH YOU
CAN BE TAUGHT EVEN BETTER IN OUR
SCHOOLS BECAUSE WE KNOW HOW
IMPORTANT IT IS FOR PEOPLE TO
MAKE GOOD CHOICES.
IN THEIR LIFE AND AND.
.
I AND WHAT WE ALSO KNOW THAT
WHAT WE WANT TO ENCOURAGE ALL
KINDS OF VEHICLES THAT THAT
REVOLVE AROUND SAVINGS.
THE STATE PER.
ADMINISTERS A COLLEGE SAVINGS
PLAN.
DOESN'T MANDATE WHAT THEY'RE
GOING TO GET OUT OF IT IF THEY
SAVE THROUGH IT AND BILLIONS OF
BEEN PUT ASIDE FOR IT BUT.
IT TRIES TO IT KNOWS THAT THAT
MONEY WILL GROW.
IN AT WITH THE VARIOUS
INVESTMENT OPTIONS AND THEY GIVE
CHOICES TO.
THE FOLKS THAT ARE PUTTING THEIR
THEIR THEIR THEIR KIDS.
HOPEFULLY FUTURE COLLEGE FUND
MONEY THERE AND. I I THINK
IT WAS MENTIONED ABOUT THE
SECURE CHOICES SENATE BILL ONE
TWO THREE FOUR THE CENTER DAILY
ON IS PUT FORWARD. TO ENCOURAGE
THAT RETIREMENT SAVINGS BY THAT
THE PRIVATE SECTOR SO IMPORTANT.
AND I THINK THAT IT IS ALSO TRUE
THAT. OUT YOU KNOW THAT WE
SPEND.
THIRTY FORTY BILLION AND THE AND
THE AND THE.
THE SAFETY NET AT THAT STATE
PROVIDES EVERY YEAR TO HELP
PEOPLE WHO. WERE ABLE TO DO THAT
THAT ARE I RUN INTO HARD TIMES
SIR.
HOW HAVE CIRCUMSTANCES THAT WE
DECIDED THAT IT'S IN THE STATE'S
INTEREST TO HELP THOSE PEOPLE
THAT'S A GOOD THING?
I'D SO WE CERTAINLY DON'T WANT
MORE PEOPLE FALLING INTO THAT
NET. AND E WANT TO FIND WAYS
FOR THEM TO US. A FLOURISH AND
AND DAD AND INVESTING THEIR TIME
IN A WAY THAT THEY CAN MAKE.
GOOD CHOICES ABOUT.
THOSE ARE PLACES THAT WE WE ALL
AGREE.
AND AS I MENTIONED AND
RESPONSES SENATOR LATER EARLIER.
PEOPLE DESERVE TO HAVE A GOOD
RETIREMENT THEY'VE WORKED THEIR
WHOLE LIFE AND THAT THOSE ARE
PLACES WHERE WE. RUN THE SAME
PAGE.
BUT WE ALSO KNOW THAT WE HAVE A
A PUBLIC THE PUBLIC PENSION
SYSTEM THAT'S ON THE VERGE OF
COLLAPSE.
SIXTY EIGHT PERCENT FUNDED
APTERA RECORD STOCK MARKET RUN.
ON ALONG.
ECONOMIC REBOUND AND WE KNOW
THAT THESE POSITIVE YEARS ARE.
NOT GOING TO LAST AND THAT WE
HAVE A BIG CRISIS BOTH ON THE
STATE LEVEL AND ON THE LOCAL
LEVEL. ANDAND AND MANY PUBLIC
AGENCIES ARE GOING TO FACE THE
THREAT OF BANKRUPTCY WITHIN.
MINE'S WOMEN GOING TO THAT NEXT
RECESSION BECAUSE THEIR PENSION
SYSTEMS ARE NOT FUNDED.
AND IT IS TRUE THAT THAT TELL
WHILE WE HAVE.
AYE EQUALIZE THE NORMAL COSTS
FOR NEW EMPLOYEES NOW BASED ON.
PROPOSES THAT GOVERNOR BROWN
WAS ABLE TO GET THROUGH THE
LEGISLATURE.
THAT THE RISK
THAT'S ASSOCIATED WITH THE THAT
THE DEFINED BENEFIT IS FULLY ON
THE TAXPAYERS IT'S FULLY ON THE
TAXPAYER.
AND.
AND WE ALSO SEE BECAUSE WE HEAR
ABOUT IT FROM OUR SCHOOL
DISTRICTS AND WE HEAR ABOUT FROM
OUR CITIES IN OUR COUNTIES.
THAT THAT THE AND LOOK AT AT THE
STATE LOOK AT THE CONTRIBUTION
THAT THE STATE'S NOT REQUIRED TO
PUT MORE INTO CALPERS BECAUSE.
OF THE INVESTMENT TURNS AREN'T
AREN'T AREN'T.
AT THE RIGHT LEVEL SO WE HAVE A
CRISIS IN OUR SYSTEM AND. THIS
AND THIS PROPOSAL WASN'T MEANT
TO FIX THAT IT WAS MEANT TO NOT
MAKE IT ANY WORSE.
AND IT WAS ALSO MEANT TO BEGIN
TO BUILD CONFIDENCE AMONG THE
TAXPAYERS THAT WE THE PUBLIC
SERVANTS.
I RECOGNIZE OUR PROBLEM AND ARE
TRYING TO DO SOMETHING ABOUT IT
BECAUSE IT'S ONLY A SMALL STEP
I'M NOT TRYING TO MAKE THE SCENE
LIKE IT'S A. SOLVING ALL THE
PROBLEMS THAT THAT WE'RE FACING
IT'S REALLY MEANT TO BE. A
CONSTRUCTIVE STEP FORWARD IN A
POSITIVE WAY NOT A PUNITIVE WAY
IT'S AN OPTION.
BUT EVERYTHING EVERY TIME I LOOK
AT THE STATISTICS ABOUT HOW.
EMPLOYEES A BENEFIT OR DON'T
BENEFIT UNDER THEIR CURRENT
SERVICE.
IT'S IT'S IT'S EXTRAORDINARY TO
SEE.
HOW THE AND WOOD YOUNGER
EMPLOYEES NOT FIVE YEARS HAVE IT
FIFTEEN YEARS IF YOU HAVE AN
EMPLOYEE? THAT BEGINS WORK RIGHT
NOW FOR THE STATE OF CALIFORNIA.
AT THE AGE OF TWENTY FIVE. AND
IF THEY BEGAN ANOTHER EMPLOYEE
STARTED AT THE AT THE AGE OF
FORTY FIVE.
THAT IN FIFTEEN YEARS OF WORKING
FOR THE STATE THERE'S ENORMOUS
DIFFERENCE OF BENEFIT BECAUSE
THE PERSON THAT'S FORTY FIVE.
WITH THEIR FIFTEEN YEARS.
AND THERE TWENTY FIVEWITH
FIFTEEN YEARS THAT'S IT IF YOU
LOOK AT THE NUMBERS IT'S A HUGE
DIFFERENCE THAT'S NOT FAIR.
IT'S NOT GOOD FOR THAT EMPLOY
PEOPLE PUT IN FIFTEEN YEARS THEY
BALK AND PAID THE SAME WAGE.
IN THAT THEY COME OUT OF IT.
WITH A HUGE DISADVANTAGE SAID
THERE'S A WE NEED TO FIND SOME
WAYS TO RIGHT SIZE.
AND I HOPE THAT I CAN WORK
CONSTRUCTIVELY WITH EVERYBODY
HERE GOING FORWARD THIS BILL
DOESN'T MOVE FORWARD I HOPE WE
CAN. WORK TOGETHER BECAUSE WE
NEED TO.
RIGHT SIZE THE SYSTEM WE NEED
TO RESTORE PUBLIC TRUST BECAUSE
WE'RE GOING TO GO OFFER
FINANCIAL CLIFF. ANDERSON IS NOT
GONNA BE PRETTY AND I THINK WE
NEED TO SHOW THE TAXPAYERS THAT
WE'RE WORKING HARD TO MAKE IT
BETTER. VERSES.
MORE DRAMATIC CHANGES THAT WE'VE
SEEN IN THE CITY OF SAN DIEGO
AND OTHER PLACES WHERE.
PEOPLE GOT SO FED UP THAT IT
WAS A BIG UPSIDE DOWN.
TOSS IN THE WHOLE SYSTEM AND
THE ITEM OF THAT'S REALLY WHAT A
LOT OF PEOPLE WANT TO SEE IT GO
SO THANK YOU FOR YOUR
CONSIDERATION CHAPTER XIV.
OKAY. SO IT'LL TAKE AS YOUR
CLOTHES. AND THE.
IS THERE A MOTION I THINK. WE
COULD COMMIT OKAY SO THAT'S BEEN
MOVED BY SENATOR MORE LOCK.
.
THE AND THE MOTIONS TO PASS
REFER TO THE SENATE
APPROPRIATIONS COMMITTEE.
SECRETARY PLEASE CALL THE ROLL
PAN NO PIANO MORRELL LEYVA.
DAVIDO MORE LIKE ALRIGHT WELL
LIKE I PORTANTINO. PORTANTINO.
OKAY THE VEIL FILL THE BILL
FAILS AND YOU RUN SUGGESTS
RECONSIDERATION OKAY UP
SECRETARY WE'VE BEEN TOLD WE
HAVE TO DO A ROLL CALL THREE
CONSIDERATION AS SECRETARY
PLEASE CALL THE ROLL ON
RECONSIDERATION. CAN I CAN I
MORRELL MORE AT LEAST I BELIEVE
I WILL LOCK. MY LIKE I
PORTANTINO. PORTANTINO OKAY LOOK
AT RECONSIDERATION THANK
HYSTERICALLY JR.
ALRIGHT THEY'RE MORE LIKE.
ALRIGHT PARA ITEM NUMBER THREE
SB TEN THIRTY THREE.
WELCOME BACK NO.
DELIVER IT.
COLLEAGUES I SHOULD AN
INDIVIDUAL WORK FOR TWO OR MORE
PUBLIC EMPLOYERS ALL OF THE
VARIOUS PENSION SYSTEMS. WORK
TOGETHER TO FIND THAT EMPLOYEES
RETIREMENT BENEFITS
THIS IS BEEN A COOPERATIVE
ARRANGEMENT FOR OVER THE YEARS
BUT. WITH THE IMPLEMENTATION OF
MORE AGGRESSIVE RETIREMENT
CALCULATION FORMULAS AND EARLY
RETIREMENT AGES THOSE EMPLOYERS
AT THE BEGINNING OF THE
INDIVIDUAL'S CAREER MEASURING A
HIGHER PROPORTION OF THE
BENEFITS. AS THE RATE OF SALARY
INCREASES EXCEEDED REASONABLE
ACTUARIAL ASSUMPTIONS
CONSEQUENTLY SOME THIRTY YEARS
DOWNSTREAM ORIGINAL EMPLOYERS
MAY RECEIVE A. STICKER SHOCK
FROM THOSE WHO HAD A STELLAR
PUBLIC CAREER RESULTING IN
HIGHER THAN ANTICIPATED PENSION
BENEFITS IT COULD ALSO BE
JOLTED.
FROM THE STRATEGY KNOWN AS
PENSION SPIKING. SP TEN THIRTY
THREE CONTINUES LEGISLATIVE
EFFORTS TO PROVIDE AN EQUITABLE
OP APPORTIONMENT OF PROVIDING
RETIREMENT BENEFITS FOR EXAMPLE
SMALL DISTRICT HIRES AND TRAINS
EMPLOYEE WHO. THEN BECOMES A
MANAGER FOR A JURISDICTION THAT
IS LARGER OR AND A HIGH COST
AREA THE SMALLER DISTRICTS
SHOULD NOT HAVE TO SUBSIDIZE A
LARGER PENSION COSTS. OVER AND
ABOVE ITS FAIR SHARE.
USING FINAL COMPENSATION
PERMANENT SUING EMPLOYER CAN
AFFECT THE PENSION LIABILITY A
PRIOR EMPLOYERS. CALPERS IS
REQUIRED TO DEFINE WHAT A
SIGNIFICANT INCREASE IS AND TO
IMPLEMENT PROGRAM CHANGES SO
THAT AN INCREASE IN ACTUAL
RELIABILITY IS NOT BORNE BY THE.
BY ANOTHER COUNTRY CONTRACTING
AGENCY OR AGENCIES DO TO
RECIPROCITY S. B. TEN THIRTY
THREE REAFFIRMS THIS RECOMMENDED
STRATEGY ONE THAT HAS BEEN
APPROVED IN TWENTY TWELVE BUT
MORE THAN FIVE YEARS LATER. HAS
NOT BEEN CONCLUDED THE LATEST
INPUT DEADLINE WAS JUST EARLIER.
HOURS JUST LITERALLY THIS MONTH
PROP APRIL SECOND. TWENTY
EIGHTEEN. COLLEAGUES USING A NO
BETTER NO WORSE POLICY IN
DEALING WITH THIS CONCERN S. B.
TEN THIRTY THREE AFFIRMS THE
NEED. TO INSERT THE TEXAS
MUNICIPALITIES WHO ARE FUNDING
IN GOOD FAITH FROM INCURRING A
FORM OF DOWNSTREAM SPIKING
CONSEQUENTLY I RESPECTFULLY ASK
FOR AND I WILL.
OKAY THANK YOU WITNESSES SUPPORT
THANK YOU MISTER CHAIRMAN AND
THE COMMITTEE MEMBERS. UP
PENSION RECIPROCITY IS A
VALUABLE BENEFIT TO WORKERS BUT
IT COMES AT A PRICE.
I WORKERS WHO TRANSFER BETWEEN
AGENCIES RECEIVE A HIGHER MORE
COSTLY PENSION BENEFIT WITH
RECIPROCITY. THEN THEY HAVE
WITHOUT RECIPROCITY.
UNDER CURRENT LAW THE ENTIRE
COST OF THAT REFERENCE
RECIPROCITY IS BORNE BY THE
EMPLOYER WHO LOSES THE EMPLOYER.
EMPLOYEE TO ANOTHER AGENCY THIS
BILL WOULD TRANSFER THE FULL
COST OF RECIPROCITY TO THE
AGENCY WHO HIRES THAT WORKER
FROM ANOTHER AGENCY. IT WOULD BE
ESPECIALLY HELPFUL FOR SMALL
ROLE FIRE DISTRICTS.
WHO ROUTINELY RECRUIT AND TRAIN
FIREFIGHTERS?
AND SUFFER FROM HIGH TURNOVER
BECAUSE THEY CAN'T MATCH THE
WAGES THAT ARE OFFERED BY
ANOTHER NEIGHBORING LARGER FIRE
DISTRICT.
I ALSO UNDERSTAND THAT THE STATE
WOULD BENEFIT FROM THIS BILL
BECAUSE IT LOSES MORE EMPLOYEES
TO AGENCIES.
THEN IT RECRUITS FROM FROM
AGENCIES.
I AGENCIES WHO ATTRACTING
RECRUIT EMPLOYEES FROM OTHER
AGENCIES.
WOULD BEAR THE FULL COST OF
REACH BRUCE RECIPROCITY RATHER
THAN THE OTHER WAY AROUND. THE
RECIPROCITY. BENEFIT GIVES
AGENCIES WHO DO THE RECRUITING A
LIKE UP.
ON ATTRACTING WORKERS BECAUSE OF
THAT RECIPROCITY BENEFITS EASIER
FOR THEM TO GET OTHER.
WORKERS FROM ANOTHER AGENCY SO
THEY SHOULD BEAR THE FULL COST
OF RECIPROCITY NOT THE OTHER WAY
AROUND.
THANK YOU. SO OTHER WITNESSES IN
SUPPORT.
IT I THINK YOU'RE AWESOME WE
HAVE THE CITY OF SAN MARCOS IN
SUPPORT.
THANK YOU.
THURSDAY WAS SIMPLY ASSOCIATION
CALIFORNIA CITIES ORANGE COUNTY
IN SUPPORT.
THANK YOU.
OKAY OUT WITNESSES IN
OPPOSITION.
I COMMEND THE FABLE.
ASSEMBLY.
LAUGHTER. IT SELLS ONE MORE.
THIS KAREN SENATORS TERRY BROWN
I'M HAVE FAST YEAH CALIFORNIA.
.
I DON'T I DON'T I.
JUDGES SCORE YOUR BILL SENATOR
PRODUCE THE LEAST REPUGNANT.
LEAVE TROUBLESOME. I SHOULD THE
REPUGNANT.
OF THE BUNCH YEAH THERE IS IT.
PERIOD TO DIFFICULT.
PROBLEM HERE.
AND CALPERS HAS ATTEMPTED TO
ADDRESS THIS IN THIS BIKING
LEGISLATION. AND PRIOR VERSIONS
BEFORE AND STRIKE THE BALANCE
BETWEEN. SOMEONE BEING REWARDED
FOR SUCCESSFUL CAREER. AND BEING
PROMOTED.
GOING FROM ONE INDUSTRY EARNED
ONE AGENCY TO ANOTHER AND
EXCELLING IN THEIR CAREER AND
THE NORMAL ISSUE AND RATE OF
FOUR PERCENT. I THINK IS WHAT
THE CALPERS CALCULATION IS THE
MOMENT. OF.
AS A SALARY INCREASES ANNUALLY
OVER A CAREER.
I THINK THE CURRENT PROGRAM
THAT THEY'RE ATTEMPTING TO
ADOPT.
NOT FULLY ADOPTER IMPLEMENTED
THIS MOMENT.
STRIKES THAT BALANCE BETWEEN
THE TWO SO THAT YOU ARE NOT.
PENALIZE FOR EXCELLING.
AND IT STILL ENCOURAGES
AGENCIES TO RECRUIT AND RETAIN
OTHER. A QUALIFIED PERSON NOW
THIS PROPOSAL. WOULD PUT ALL THE
ONUS ON THE NEW EMPLOYER EVEN
THOUGH THEY MAY HAVE FEWER YEARS
OF SERVICE WITH THAT EMPLOYER. I
MEAN ALL WE'RE TALKING ABOUT
HERE IS THE CALCULATION OF FINAL
CARP WHICH FALLS ON THE YEARS.
IF THE PERSON WORK TEN YEARS IN
ONE AGENCY IN TEN YEARS IN THE
OTHER. THEN WHAT HAPPENS
UNDER THIS PROPOSAL ALL THE.
.
LIABILITIES WERE OUR
RESPONSIBILITY FOR THAT. SERVICE
CREDIT WOULD FALL ON THE NEW
EMPLOYER. THAT SEEMS HARDLY
FAIR.
SO I THINK CALPERS HE'S TRYING
TO GET AT THIS IN THE SPIKING
SITUATIONS THAT THIS CAME OUT IF
YOU'LL REMEMBER CENTER OUT OF
THE BELL SCANDAL. WHERE SOMEONE
FROM THE CITY TO PLEAD WITH THE
CITY GLENDALE? LITTLE YOU KNOW
MAKING BUT I DON'T KNOW I A
MODEST SALARY FOR A.
AND OFFICIAL AND THEN MORE THAN
DOUBLES THEIR SALARY.
CALPERS I THINK HIS HIS FAMILY
SING SOMETHING IN THE TWENTY
PERCENT RANGE IN ANY SINGLE YEAR
AYE SOMETHING THAT TRIGGERS THE
REVIEW IN THE CONVERSATION. AND
ALLOWS HIM TO GO BACK AND ASSESS
SOME OF THAT THAT LIABILITY TO
THE.
.
FUTURE I SORRY POSSESS A FUTURE
EMPLOYER NOT THE OUR CURRENT
EMPLOYER NOT TO PRIOR EMPLOYER
AND FOR THAT REASON. WERE
OPPOSED TO THIS APPROACH THANK
YOU VERY MUCH.
OTHER WITNESSES IN OPPOSITION.
MISTER CHAIRMAN INNER A MEMBERS
ARE READ A RIVETING PORAC.
JUST TO AGREE WITH THE COMMENTS
MADE BY MISTER BRENNAN.
THEY QUESTIONS FROM COMMITTEE
MEMBERS ASSEMBLY ABOUT.
DO YOU HAVE A QUESTION SO HOW
DOES IT WORK IN TO YOUR BILL
EXACTLY IF I WORK TENURE
SOMEPLACE AND TENURE SOMEPLACE
ELSE. THE MY FIRST EMPLOYER FOR
TEN YEARS HAS NO WITH
RECIPROCITY HAS NO OBLIGATION TO
WELL THAT'S NOT IT AT AT ALL IT
WOULD BASICALLY FREEZE THE
BENEFIT AND THE LIABILITY AT THE
TIME YOU LEAVE EMPLOYER JUSTICE
IF THAT EMPLOYEE LEFT FOR THE
PRIVATE INDUSTRY.
SO WHAT WAS SO WHAT IS A
PRACTICE NOW THAT IS SO ONEROUS
WELL IF YOU HAVE TO EMPLOYERS
TEN YEARS GENTLE SUPPORTERS
GOTTA HIRES OR WOULD YOU YOU YOU
HAVE TO PAY THEM EQUALLY. THEN
EMPLOYER ONE HAS TO PAY MORE
THAN THEY SHOULD HAVE. PET AND
WE'RE JUST CRIED THEY PAY FIFTY
PERCENT OF THE COST BUT WHAT
YOU'RE SAYING IS THEY WERE AT A
LESSER SALARY POSSIBLE OR JUST
RIGHT FAIR SO THEY DON'T HAVE
THE SURPRISE BILL. WHEN THAT
EMPLOYEE RETIRES AFTER TWENTY
YEARS.
THANK YOU.
SO EXIST HERE THE QUESTION IS IN
AND CRAFTING THE BILL HERE HAVE
YOU HAD CONVERSATIONS WITH
CALPERS ABOUT HOW YOU WOULD MAKE
THIS WORK CAN YOU JUST TELL HAVE
HAD CONVERSATIONS WITH MARCIA
MARCIA FROST BUT. NOT
SPECIFICALLY IT INTO THE INTO
THE WEEDS AYE X. IF I COULD I
WORKED WITH BROWN ON DEBORAH
ALLEN ON THAT ELEMENT RELATED TO
RECIPROCITY. AND.
WE LEFT OUT YOU KNOW PHILIP TO
BROWN THIS THAT YEAH IT GOVERNOR
BROWN GOV GOVERNOR TUCKER AND.
.
WE DIDN'T GO FAR ENOUGH THIS
WOULD SIMPLIFY THE CALPERS
EFFORT ON.
FIXING RECIPROCITY THIS WOULD
CRACK GREATLY SIMPLIFIED THE
PROCESS.
OKAY SO.
SO I THINK YOU KNOW FIRST OF ALL
I APPRECIATE THE IDEA AND I
THINK THERE'S MERIT TO LOOKING
AT.
YOU KNOW OF WHAT HAPPENS IS
THAT.
IF YOU HAVE ONE ENTITIES BORDERS
US.
LARGE SALARY ARE YOU KNOW
COMPENSATION INCREASE AND AND
HOW THAT HOW HOW YOU HOW YOU
BALANCE THAT OUT THE WAY THAT
THAT.
AGAIN TO TO TRY JUST A ISSUE
BUT I ALSO EIGHT EIGHT THEN WE
HAVE A CONCERN THAT THIS IS ALSO
A. AND YOU MADE REFERENCE THAT
CALPERS SKY TRYING TO LOOK AT IT
OUR FOR DAD BUT. I ALSO FEEL
LIKE THIS FOR A WEEK WE NEED TO
A.
THERE NEEDS TO BE.
TO OUR CONVERSATION WITH
THE SYSTEM ITSELF ABOUT WHAT
WIDELY WORKING ON AND WHAT. HOW
DO WE GO ABOUT DOING THIS IN A
WAY THAT WILL BE FAIR AND
WORKABLE AS WELL?
SO I I THINK THAT THAT'S.
.
THAT IT BECAUSE WHY THINGS WHAT
WHAT WE WHAT TRADE IS THAT WE
WOULD WANT ADVANCE THE CALPERS
IS RETAINING THIS.
THE IDEA THAT SOMEONE CAN START
IN ONE PLACE AND ACTUALLY GO ON
WORK MEANNESS ACTIONS ARE CAME
UP EARLIER DOES HEARING SOME
WAYS YOU. KNOW IT ADVANTAGES OF
HERS IS THAT YOU COULD ACTUALLY
DEL STARTIN MAYBES WORK FOR THE
STATE AND THEN YOU WORK YOUR
HAPPENED THE MOVE AND YOU WORK
FOR COUNTY AND YOU STILL. GET
YOUR EAR PENSION GETS TO MOVE
AROUND WITH YOU BECAUSE IF
THEY'RE ALL PART OF THE PURSES
THEM I THINK THAT'S ACTUALLY
WHAT BANKS OF ART CALPERS
SYSTEM.
SO IT IS SO IN SOME SENSES.
BUT WOULD LIKE TO TRY TO PROTECT
THAT MAKE THAT CONTINUE TO BE
AVAILABLE.
SAMETIME I ALSO HEAR WHAT
YOU'RE TRYING TO DRESS IN THE
BILL WHAT HAPPENS WHEN YOU HAVE
YOU KNOW SOMEONE CERTAINLY NOW
MOVES TO IN PLACE FOR THE SAUDIS
A LOT HIGHER AND THEN THEY
WORKED THERE FOR FIVE YEARS IN
THE NAY RETIRE EIGHT AND SO HOW.
BUT THERE'RE CONTRIBUTION
ORIGINAL IS BASED ON WORKING AS
A FIFTEEN YEARS AT SOMEPLACE WAS
PAID A LOT LESS SO HOW DO YOU.
HOW DO YOU BALANCE OUT THE
LIABILITIES IN A WAY TO DE
SADE'S SYSTEM SO? I THINK THAT.
ABS HOPING I WOULD HEARD THAT
YOU'VE HAD SOME CONVERSATIONS
WITH SUCH AS MARTY FROST WITH
THE STAFF AT CALPERS ABOUT WHAT
THEY'RE DOING AND HOW THAT FITS
INTO THAT.
AND AND I I HAVE NOT HAD
DETAILED CONVERSATION BUT HAVE%
HAD TALKS WITH HER. SO I WOULD
SAY MAYBE WE MOVE THE BILL
FORWARD IN AT ALL HAVE CUT.
A CONVERSATION WITH THEIR BEFORE
BRINGING QUE.
OKAY WELCOME.
YEAH OKAY.
SO.
.
WELL THIS IS THE POLICY
COMMITTEE SO.
.
SO YOU KNOW I HAD I DON'T FEEL
COMFORTABLE MOVING THIS FORWARD
TODAY.
RIGHT NOW I APPRECIATE THE IDEA
THAT YOU'RE TRYING TO RAISE AND
I THINK WE NEED TO FIX.
TO EXPLORE MORE BUT I THINK
LEGISLATIVELY PROBABLY TO TIMING
ISN'T.
THAT WHILE THIS WAS I THINK MORE
CONVERSATIONS NEED BE HAD BEFORE
WE KEEP MOVING THE BILL FORWARD.
NOT SURE THAT THAT'S HAPPENED
ENOUGH IN MY MIND SO MAYBE WE
CAN.
THINK ABOUT HOW WE CAN DIGITAL
WORK ON THAT ISSUE BECAUSE I
APPRECIATE. YOU KNOW THE FACT
THAT YOU'RE TRYING TO LOOK LOOK
AT THIS SELL.
SO THAT I AM.
I THINK WE'LL LOOK FOR A
COURTESY MOTION YEAH SHOULD YOU
WANT TO HAVE A MOTION ON IT OR
DID YOU WANT TO WORK WITH THE
CHAIR.
NO.
THE DOOR NUMBER ONE OR DOOR
NUMBER TWO DELEGATES THAT IT'S
BAD NEWS EITHER WAY YEAH YEAH
I'M GIVEN THE OPPORTUNITY TO BE
OUT TO THE UP FRONT I THINK
TIMING WISE ASSAULTED DORA
BRASSY LET'S WORK TOGETHER ON
THIS BECAUSE. THAT THE CALPERS
IS AN AGREEMENT AND SO. WHAT WE
WANT TO DO IS A KIND OF
ENCOURAGED AND KEEP MOVING WHAT
WE'RE LOOKING AT IS IS IS BETTER
LABOR IS LIKE IF YOU WOULD
WORKING FOR THE COUNTY OF
ORANGE?
AND YOU'RE AT THIRTY SEVEN
ACTIVE AND YOU GO TO CALPERS
INVESTS IN AND THEN THEY WORK
TOGETHER. AND AND TRYING TO MAKE
SURE THAT YOU DON'T KNOW BETTER
NO WORSE THAT EVERYONE IS.
TREATED FAIRLY. TOLD MISTER
CHAIR I I'LL TAKE YOUR
SUGGESTION I'LL WORK WITH YOU
AND I WORK WITH. ANITA CALPERS
STEPS IN THIS YUBA SCRAPS
THOUGHT IT HONORS TIME IT
DEADLINES ARE BUT NOT CASE I
DON'T I WON'T MAKE A MOTION TO
MOVE ON TO THE NEXT AND WILL
RESULT WILL HOLD THE BILL THEN
AND THERE IT IS RIGHT NOW. THANK
YOU OKAY WILL HOLD THE BILL IN
COMMITTEE RIGHT NOW BUT THE
GREEN AT THE AUTHOR. OKAY
ALRIGHT VERY GOOD VALUE ANY
GOING TO FINISH SO I ACTUALLY
WANT TO GO AHEAD AND FINISH BUT
ACTUALLY I.
PERHAPS
THE CENTER LEYVA WHICH I LIKE TO
TAKE THE CHAIR WAS BECAUSE I
HAVE GOOD PERSON VOTE SO. GOOD
TO GO WHERE HELD UP BUT NOT
FIRST BEEN PEOPLE ON THE OTHER
COMMITTEE.
SORRY IF THIS IS FOR THREE
PEOPLE.
SENATE FLOOR LOS.
FOURTEEN THIRTY THREE IS THAT
CORRECT CORRECT PLEASE PROCEED
WHEN YOU ARE READY THANK YOU
FOR.
LETTING US HAVE SOME DIALOGUE
THAT IT'S APPRECIATE THAT OF
COURSE SURE.
FIFTEEN YEARS AGO I FOUND
MYSELF IN SAN DIEGO TAKING THE
TRUSTEES
MASTER PROGRAM WITH THE
INTERNATIONAL FOUNDATION OF.
EMPLOYEE BENEFIT PLANS PROGRAM
PROVIDER THAT.
TRUSTEES LIKE MYSELF AT THE TIME
I WAS ON THE ORANGE COUNTY
EMPLOYMENT RIGHT RETIREMENT
SYSTEM.
OFFERED SO WAS SET UP FUND
CONFERENCE.
BUT IT WAS YEAH IT WAS NOT TOO
LONG AFTER S. BEFORE HUNDRED
PASSED AND I HAD TRUSTEES FROM
AROUND THIS THE COUNTRY. AND I
SAID YOU A BELIEVER WORK WE WENT
FROM TWO PERCENT AT FIFTY TO
THREE PERCENT OF FIFTY. WHAT
KIND OF IDEAS?
SHOULD WE BE LOOKING AT BECAUSE
WE'RE GONNA.
WE'VE EXPERIENCED A MAJOR BRAIN
DRAIN WE WANT SUCH A LOT OF
PEOPLE.
WAIT UNTIL THEY TURNED FIFTY OR
AND THEN WAITED UNTIL THE THAT
THE THE.
.
BOB VIA IMPROVEMENT WAS MADE
THEM BECOME AFFECTED THEN WE
JUST HAD. A WONDERFUL COMMAND
STAFF AND SENIOR OFFICERS
LEAVING IN DROVES.
SO HOW DO WE RETAIN THESE
INCREDIBLE PEOPLE AND SO WE. WE
DISCUSSED THIS.
BEAT AT LENGTH BECAUSE HOW DO
YOU TELL YOUR SPOUSE WELL I
COULD STAY AS A A PUBLIC SAFETY
OFFICER TO THAT'S WHAT I LOVE.
BUT I ONLY BRING HOME TEN
PERCENT MORE THAN IF I RETIRED.
SO SHARING THAT STIMULATE
DISCUSSION.
VIA PROPOSAL CAME OUT THAT YOU
KNOW THERE'S A THING CALLED A
DROP PLAN. JADA DO A DEFERRED
RETIREMENT OPTION PROGRAM AND SO
WE FOUND OURSELVES HAVING A
INCREDIBLE ROBUST DISCUSSION. ON
A DROP PLAN AND I THOUGHT TO
MYSELF WELL THIS MAKES AND YOU
GOTTA KEEP HIM FOR FIVE MORE
YEARS. BUT I THOUGHT TO MYSELF
THIS IS NOT THE SOLUTION IF IT
IF THE SOLUTION AND WE'RE GONNA
BE IN TROUBLE SO COLLEAGUES.
WE'VE SEEN THE RECENT STORIES
OUT HOPEFULLY IN THE LOS ANGELES
TIMES ON DROP PLANS AND THEY'RE
EXACERBATING.
BIG THE E. D. EXISTING PENSION
CRISIS.
YOUR CONSULTANT STAFF REPORT
PROVIDES A CONCISE EXPLANATION
OF WHAT A DROP PLAN IS AND HOW
WORK SIMPLY.
I DON'T EMPLOYEES LAST FIVE
YEARS WITH THE MUNICIPALITY THEY
RECEIVE THEIR SALARY AND THEIR
PENSION.
THE PENSION BENEFITS ARE
DEPOSITED INTO A TRUST AND
EARNED AN ATTRACTIVE RATE OF
INTEREST AT THE CONCLUSION OF
THE FIVE YEARS TO TRUST
DISTRIBUTES THE FINAL BALLOTS.
WITH DICK WITH THE COMPOUND
INTEREST.
SO I FULLY UNDERSTAND THE
MOTIVATION AND THE
IMPLEMENTATION OF THIS PLAN I
CAN SEE WHY IT IS USED AND HOW
POLITICALLY DIFFICULT IT IS TO
DISCONTINUE ALLOWING DROP PLANS
AS A MANAGEMENT ALTERNATIVE. BUT
THIS STRATEGY FOR POLICE
OFFICERS AND FIREFIGHTERS HAS
BEEN EXPOSED BY THE LA TIMES AS
A FINANCIAL NO BRAINER THANKS TO
A PROGRAM THAT ALLOWED EMPLOYEES
TO. NEARLY DOUBLE THEIR PAY BY
KEEPING THEIR SALARIES WHILE
ALSO COLLECTING THEIR PENSION
THE FINAL PAYOUTS CAN BE
STAGGERING AND ARE VERY
DIFFICULT FOR CONSTITUENTS TO
FATHOM OR DIGEST WHEN THEY'RE
PUBLISHED.
WHEN YOU ADD TO THIS THE HIGH
RATES OF THOSE ON DISABILITY AND
THIS PROGRAM BECOMES ALMOST
IMPOSSIBLE TO JUSTIFY. FOR
EXAMPLE A QUOTE THE LA TIMES
FORMER POLICE CAPTAIN DARRELL
RUSSELL WHO COLLECTED ONE POINT
FIVE MILLION DOLLARS OVER FIVE
YEARS IN THE PROGRAM. MISSED
NEARLY THREE OF THOSE YEARS
BECAUSE OF PAIN FROM A BAD KNEE.
CARPAL TUNNEL AND MULTIPLE
INJURIES HE CLAIMED HE SUFFERED
AFTER FALLING OUT OF AN OFFICE
CHAIR. COLLEAGUES I AM IN NO WAY
INFERRING THAT THIS CAPTAIN IS
ABUSING THE SYSTEM IT IS THE
SYSTEM THAT IS WRONG IT NEEDS TO
BE FIXED. THIS IS WHY S. B.
FOURTEEN THIRTY THREE ELIMINATES
DROP PLANS ALTOGETHER LET'S STOP
THE PERCEPTION OF ABUSE LET'S
ELIMINATE THE TEMPTATION THAT
SHOULD NEVER HAVE BEEN THERE IN
THE FIRST PLACE. THE EXPERIENCE
STUDIES FOR DROP PARTICIPANTS OF
LOS ANGELES BETWEEN JULY TWO
THOUSAND EIGHT AND JULY TWO
THOUSAND SEVENTEEN IS NOT
PRETTY.
FOUR FIVE POINTS ONE.
POLICE AND FIREFIGHTERS IN THE
DROP PROGRAMMER NEARLY TWICE AS
LIKELY TO MISS WORK FOR INJURIES
ILLNESS OR PAID LEAVE.
TO THOSE TAKING A DISABILITY
LEAVE WHILE AND DROPPED MISTER
COMBINED TWO POINT FOUR MILLION
HOURS OF WORK FOR LEAVES AND
SICK TIME AND WERE PAID MORE
THAN TWO HUNDRED AND TWENTY
MILLION DOLLARS. FOR THE TIME
OFF THREE MORE THAN A THIRD
THIRTY SIX PERCENT OF POLICE
OFFICERS WHO ENTERED THE PROGRAM
WENT OUT ON AN INJURY LEAVE AT
THE FIRE DEPARTMENT IT WAS
SEVENTY PERCENT. FOR THE AVERAGE
TIME OFF FOR THOSE WHO.
TOOK INJURY LEAVES WAS NEARLY
TEN MONTHS AT LEAST THREE
HUNDRED AND SEVENTY MISSED MORE
THAN A YEAR. THIS COMES UP COMES
AT A VERY STEEP PROTESTANT POINT
FIVE IN ADDITION TO THE SALARY
AND PENSION PAYMENTS IT WILL
LEAVES TAKEN BY DROP
PARTICIPANTS CREATE A THIRD
COSTS FOR TAXPAYERS. THE FIRE
DEPARTMENT IS OVER TIME TO FILL
THEIR SHIPS. THE POLICE
DEPARTMENT REQUIRES OTHER
OFFICERS TO COVER THEIR WORK I
WANT TO THANK THE LA TIMES
REPORTERS JACK BILLING GUS
GARCIA ROBERTSON RYAN MENENDEZ.
FOR THEIR INVESTIGATORY WORK ON
APRIL FIFTEENTH THE SUNDAY LA
TIMES CALIFORNIA SECTION TOP
HEADLINE WAS ENROLLMENT DROPS
SURGES AMID QUESTIONS OF COURSE
AREA BY THE GUINNESS QUICK AS
YOU CAN BEFORE IT'S GONE.
COLLEAGUES LA IS REALIZING THAT
DROP PLANS ARE A MISTAKE.
SACRAMENTO SHOULD TO IT SHOULD
TAKE A LEADERSHIP ROLE IN
TOTALLY DISCONTINUING THIS
UNIQUE STRATEGY THAT'S
LEGISLATURE NEEDS TO HELP LOCAL
GOVERNMENTS HELP THEMSELVES IN
ADDRESSING. THE PENSION CRISIS I
RESPECTFULLY REQUEST TONIGHT.
THANK YOU CENTER MODE MORE
LOCKED OTHERS IN SUPPORT.
SEEING NONE ANYONE IN
OPPOSITION.
FIRST TERRY.
AND ARE NOT UNITARY.
BUT I THINK THERE THE OTHER
COMMITTEE.
BUT CHAIR RANGE FROM WITH THE
RIVERSIDE SHERIFF'S ASSOCIATION
OF. OUR MEMBERS ARE NOT.
.
THEY DON'T HAVE ACCESS TO A DRUG
PROGRAM. HOWEVER WE WOULD LIKE
IT IN IN THE FUTURE OF POSSIBLE
PIECE OF OPEN NOT COLLECTIVELY
BARGAINED FOR IN THE PAST.
IF THERE ARE ABUSES OF THE
SYSTEM THAT WE WOULD ENCOURAGE
THAT GATHERED BE SOME KIND OF
CRACKDOWN. THERE'S NO NEED TO
THROUGHOUT THIS PROGRAM THAT
ALLOWS A LOT OF ARE VERY
EXPERIENCED OF MEMBERS AND
OFFICERS TO CONTINUE THEIR WORK
AND TO TRAIN. OF THE NEW
RECRUITS ARE COMING AND SO FOR
THAT REASON WE ARE PURPOSE BUILT
THEY CAN THANK YOU SIR ANYONE
ELSE IN OPPOSITION. ORAL BRING
IT BACK TO THE COMMITTEE.
CENTER PORTANTINO.
AB CURSING OF.
WHY NOT ARE CURRENTLY?
IF WE RICHEST MISS.
FOR ARE PORTANTINO SO WE HAVE A
MOTION WHICH IS DUE PASSED TO
APPROPRIATIONS.
EXCUSE ME TO PASS TO THE SENATE
FLOOR.
PLEASE CALL THE ROLL.
PAN. MORRELL LEYVA NO LEYVA NO
MORE LOOK AYE FULLER AYE
PORTANTINO. PORTANTINO.
THE MOTION FAILS
WOULD YOU LIKE RECONSIDERATION
PLEASE.
KELLY CALDERON RECONSIDERATION
OR DO A QUICK CENTER PAN TO COME
BACK I'M SORRY IT'S STILL OPEN
UNTIL HE GETS BACK THANK YOU
MADAM CHAIR THINK YOU. SHOULD WE
GOT INTO THE CONSENT CALENDAR
OKAY.
WE HAVE FOUR ITEMS ON THE
CONSENT CALENDAR SET CORRECT.
OKAY WE HAVE SP TEN TWENTY TWO
SP TWELVE AU SEVEN SP THIRTEEN
TWELVE AND S. B. FIFTEEN OH FOUR
PLEASE CALL THE ROLL.
NO WAY OUT PHONE HERE SENATOR
PORTANTINO COULD YOU MAKE A
MOTION FOR THE DIFFERENCE AND
TALIBAN KISSER.
YEAH. PAN.
MORRELL.
LEYVA AYE LEYVA AYE MORLOCK.
MORE LIKE I PORTANTINO AYE
PORTANTINO AYE.
ALRIGHT WE'LL PUT THAT ON CALL
UNTIL SENATOR PETE AND GET BACK
AND I THINK WE HAVE ONE MORE
BILL LEFT HIS PILLS CAN LOOK AT
CURIOUSLY.
PERFECT TIMING MISTER CHAIR.
IF YOU WANT WHAT ISN'T YOURS
OKAY.
GETS REPLACED HER THANK YOU.
WAS EVEN THOUGH HA HA.
THAT ARE PAN YOU HAVE THE FLOOR
THANK YOU CENTER MORLOCK CHAIR
MEMBERS.
.
PLEASE PRESENT YOU SB ELEVEN
SIXTY SIX SB ELEVEN SIXTY SIX
REQUIRES A CALPERS CONTRACTING
AGENCY TO NOTIFY ITS ACTIVE
RETIRED MEMBERS.
BUT AND THIRTY DAYS WHEN AGENCY
FAILS TO MAKE ITS REPORT
ACQUIRED EMPLOYER PENSION
CONTRIBUTIONS DIPPERS.
THE BILL ALLOWS ACTIVE RETIRED
CALPERS MEMBERS TO KNOW MORE
QUICKLY WHEN THEY'RE CONTRACTING
AGENCY MAYBE HAVING FINANCIAL
DIFFICULTIES. THERE CAN AFFECT
THE MEMBERS PENSION.
WE'RE COMMITTED TO WORKING WITH
STAKEHOLDER STRESS OF CONCERNS
REGARDING ACCESS THE CONTACT
INFORMATION FOR FORMER EMPLOYEES
RETIREES SIMILAR TO THOSE AND SB
TEN TWENTY TWO. BATTERY AYE VOTE
TO KEEP THE BILL MOVING SO WE
CAN CONTINUE THIS CONVERSATIONS
RESPECTFULLY ASK FOR AN AYE VOTE
THANK YOU. LOCAL BELL.
WHEN WE HAVE A MOTION TO HAVE
ANY OTHER WITNESSES IN SUPPORT.
DO WE HAVE ANY WITNESSES IN
OPPOSITION.
OKAY.
NCCU DOROTHY JOHNSON THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES IN RESPECTFUL
OPPOSITION AND WE DEFINITELY
APPRECIATE THE OFFER BUT TO
ALIGN THE SPELL MORE SIMILARLY
TO TEN TWENTY TWO WHICH IS ON
CONSENT TODAY. AND THAT IS
BECAUSE OF THE REASON THAT BY
LOCAL AGENCIES DO NOT MAINTAIN
DATA FOR FORMER IT REACHED THAT
FORMER EMPLOYEES OR RETIREES.
WE ALSO HAVE TO BEG THE
QUESTION OF WHETHER THE INTENT
OF THIS BILL WILL BE ACHIEVED
SINCE WE'RE RELYING ON AN AGENCY
WHICH IS DELINQUENT IN MAKING
PAYMENTS. IF THEY CAN THEN BE
COMPLIANT WITH PROVIDED A
NOTIFICATION ALSO THAT A
SPECIFIED TIMEFRAME SO WE HAVE
NO PROBLEM WITH MAKING
NOTIFICATIONS AND HAVE IT BE
KNOWN THAT THERE'S DELINQUENT
PAYMENTS.
IT IS PERHAPS THE CALPERS IS THE
BETTER AGENCY FITTED FOR THAT
DUTY SINCE THEY HAVE THE
INFORMATION AND THEY ARE THE
ADMINISTRATORS OF THE FUNDS. AND
OF THAT REMAINS RESPECTFULLY
PUBLISHED AT THIS TIME THANK
YOU.
DEAR MEMBERS COMMITTEE DELEGATE
WAS CALIFORNIA SPECIAL DISTRICTS
ASSOCIATION LIKE THAT LINE MY
COMMENTS WITH.
THAT OF OF MISTRUST IS IT THE
EYES HE SEC. YET IT'S IT'S
REALLY THE.
.
THE ISSUE OF WHO SHOULD BE
MAKING THAT CONTACT SHOULD DO
YOU SHOULD AN AGENCY THAT IS
DELINQUENT IN THEIR PAYMENTS.
THE THE ONCE ENTRUSTED WITH
NOTIFYING THE EMPLOYEES THAT
THEIR DELINQUENT IN THEIR
PAYMENTS OR SHOULD WE DEPEND ON
CALPERS TO DO THAT WHO ONE ALSO
HAS THAT CONTACT INFORMATION.
AND HAS. THE RESOURCES TO
ACTUALLY DO THAT MAILING FOR
CAN'T AFFORD TO MAKE THE PAYMENT
MAYBE THEY CAN'T AFFORD TO DO
THE MAILING. SO.
HAVING CALPERS STUDENT CALPERS
ONCE SENATE BILL FOR THAT THAT
MAILING SOVIET ADDED ON UNDER
THAT BECAUSE IT'S REALLY JUST
THE PRACTICAL. THE PRACTICAL
APPLICATION OF THE NOTIFICATION
THERE ISN'T THE AN ISSUE WITH
NOTIFYING THE EMPLOYEES
DISTRICTS
WHO IS WHO SHOULD BE THE
RESPONSIBLE PARTY IN DOING SO.
THAT ASK FOR A GREAT FIT IN
RESPECT WE ASK FOR IT TO BE
AMENDED. ANY OTHER WITNESSES IN
OPPOSITION
LET'S. ANY QUESTIONS FROM THE
COMMITTEE.
ALL THIS IS WHERE THE CHAIR GETS
THAT.
TELL YOU HOW HE FEELS.
BUT WHY THIRTY DAYS.
WHAT WE THINK IT'S IMPORTANT
THAT?
THE EMPLOYEES.
BE OUR TAXIS NOT PLACE THAT THE
BENEFICIARIES WHO ARE GOING TO
BE AFFECTED BY THE DELINQUENCY
ACTUALLY AYE AYE NOTIFY AND
TIMELY MANNER. I APPRECIATE TO
WHAT THE OPPONENTS OTHER
CONCERNS AND.
TERMS OF SAYING WELL WHO SHOULD
DO THE NOTIFICATION.
IT IN MANY WAYS I WOULD SAY IS
THAT BECAUSE THEY TALK ABOUT
RESPONSIBILITY AND I THINK WITH
LET'S HAVE A DIALOGUE ABOUT
THAT.
YOU KNOW I THINK INITIALLY.
MY VIEW IS THAT. IT SENSE THAT
EMPLOYER IS SUPPOSED TO BE
RESPONSIBLE FOR MAKING THE
PAYMENTS.
THEY SHOULD ALSO PERHAPS BE THE
ONES TO NOTIFY THEIR RETIREES.
THE RETIREES WHO USED TO WORK
FOR THEM THAT THEIR RETIREMENT
MIGHT BE IN JEOPARDY.
THEIR PAYMENTS BECAUSE OF THEIR
DELINQUENCY THAT THAT RESPONSE
BECAUSE THERE'D RESPONSIBLE
PARTIES.
AND.
BUT CERTAINLY YOU KNOW WE WANT
TO CONTINUE TO HAVE A DIALOGUE
WITH.
WITH WITH.
WITH THEM ABOUT.
WHAT'S THE BEST WAY TO GO ABOUT
DOING DOING THAT INSURING THAT.
THE.
DEBATE FISHERIES.
ACTUALLY HAVE THE INFORMATION.
SO THAT THEY CAN BASICALLY PLAN
AND ACT ON THAT INFORMATION
PRACTICALLY DIDN'T THEY DO NEED
TO HAVE A TIMELY MANNER SO THEY
CAN DO SO.
SO WHY THIRTY OVER FORTY FIVE
SIXTY NINETY.
WELL I THINK.
THIRTY DAYS IS.
IT WOULD BE I THINK THE LONGER
YOU LET ME WE HAVE TO GET
RESERVE ABOUT TIME TO GET THE
NOTICE OUT BUT ALSO.
WE ALSO WANT TO BE SURE THAT
IT'S DONE IN A TIMELY MANNER
AND.
.
SO.
THE PERIOD IN WHICH BECOMES
DELINQUENT IS NOT SO QUICK SO
THIRTY DAYS IS ACTUALLY.
THE PAYMENT MIGHT HAVE NOT BEEN
RECEIVED IN QUITE SUBSTANTIAL
CLIMB SO.
THAT'S.
EATEN UP THIRTY ONE DAYS YOU
SEND A NOTICE AND YOU SEND IT
WILL ALSO A VERY DEVOTED ABOUT
LIKE I ANALYSTS AND AND DID YOU
THEN THE NOTICE OF THIRTY DAYS
AFTER YOU'VE BEEN DECLARED THE
LICENSE SO IT MAY BE THAT YOU
ALREADY. YOU KNOW THREE MONTHS
BEFORE OKAY SOCIALLY.
OKAY ARE CLEAN RIGHTS ANOTHER'S
IT'S NOT THAT'S NOT THIRTY DAYS
FROM THE DATE UE FOR THE
PAYMENT IT'S THIRTY DAYS FROM
THE POINT WHERE CALPERS FINALLY
SAYS YOUR DELINQUENT WHICH COULD
BE SEVERAL MONTHS AFTER THAT.
ACTUALLY DO BUT THEY'RE STILL
TALKING ORDER PROMISING IS
COMING OR SOMETHING OF THAT
NATURE.
SO.
.
AND CONTACTING RETIREES A LITTLE
MORE DIFFICULT BUT AN IDEA THAT
YOU MIGHT WANT TO AS YOU'RE
WORKING THROUGH THIS BILL. IS IS
WORK WITH THE WITH CALPERS ARE
THERE THIRTY SEVEN ACT COUNTY.
AND THEN THEY HAVE A NEWSLETTER
THAT GOES OUT WITH PAYMENTS ARE
ON A REGULAR BASIS QUARTERLY.
THIS IF YOU WANT TO BE ON A LIST
ONE JUST GIVE US YOUR EMAIL.
ADDRESS YOU CAN GET THAT TO
PEOPLE I FASTER THAN HAVE MAILED
PRETTY SENSE WHAT WHAT SURPLUS
CERTAINLY WE YOU KNOW WHAT WE
CAN LOOK AT SOME OF THE
SPECIFICS CALPERS DOES HAVE.
THE INFORMATION OF WHO WHOSE.
THAT'S THIS I THINK THE
OPPOSITION POINTED OUT YOU KNOW
WITH IT THERE IS A LIST OF
PEOPLE WHO'VE GOT W. PAYMENTS
RIGHT AND WHERE THEY TO YEAH SO.
SO I THINK THAT.
I I DO THINK THAT THE LEAST THE
INITIAL THOUGHT WAS IS THAT THE.
THAT IDIOT WAS RESPONSIBLE FOR
FINANCING AND SUPPORTING THAT IF
THE IT THE REASON FOR THOSE IS
BECAUSE THEY ARE DELINQUENT
SHOULD BE ALSO THE ONES WHO THE
RETIREES NO YOU KNOW ARE GETTING
NOTIFIED. WHEN I'M OKAY LEMON
GET DIRECT DEPOSIT CELSO.
THE NOT GOING TO GET A. HAND IN
THIS AND THAT'S SOMETHING OF A
MALE SELF. SO OKAY.
.
THE NO DO I HAVE A MOTION.
QUITE A YET WE'VE GOT A MOTION
FROM CENTER PORTANTINO. I'M MAD
IF TO PASS
CREEK WHICH DO PASSED TO
APPROPRIATIONS DO AYE OUR
MEDICAL COULD YOU PLEASE TAKE
THE ROLE.
CAN I CAN I MORRELL LEVER I
LEAVE I'VE MORE LOOK NO MORE
LIKE NO PORTANTINO AYE
PORTANTINO AYE.
IF WE DID WE DID PRETTY BUT BUT
WE HAVE THE ROLE IT'S OPEN SO I
COULD TAKE A ROLE IN THE CONSENT
CALENDAR PLEASE.
THIS ITEM NUMBER EIGHT SB ELEVEN
SIXTY SIX THREE TO.
THAT RELATED TO ONE THREE TO ONE
YOU DON'T.
WE JUST NEED TO GET SENATOR
PANTS VOTES NOW. UPON ON ON. MY
BILL.
ITEM NUMBER ELEVEN BE FOURTEEN
THIRTY THREE. THE CURRENT VOTE
IS ONE TO TWO.
PAN.
NO CAN NO.
SO THAT BILL SALES OF ONE TO
THREE.
AND.
IS DO YOU WISH RECONSIDERATION
PLEASE OKAY SO I'VE BARRING ANY
OBJECTIONS.
THAT YOU. WE WILL GRANT ME
CONSIDERATION FOR FOR FOR THAT
THOUGH AND THEN.
SICK DRINKING PLEASE OPEN THE
ROLE ON THE CONSENT CALENDAR.
ITEM NUMBER THIRTEEN SP TEN
TWENTY TWO ITEM NUMBER FOURTEEN
SP TWELVE SEVEN ITEM NUMBER
FIFTEEN SB THIRTEEN TWELVE ITEM
NUMBER SIXTEEN.
SP FIFTEEN OR FOR THE CURRENT
VOTE IS THREE TWO ZERO PM I'VE
FOUND OUT.
HAVE ANY OTHER OPEN ITEMS.
OKAY A HEARD I THINK THE
CINEMATOGRAPHER CHERRY AND
SENATORS LEAVE US WELL US OF
THIS CONCLUDES THE BUSINESS OF
THE SENATE COMMITTEE ON PUBLIC
EMPLOYMENT RETIREMENT.
THIS HEARING IS NOW ADJOURNED
THANK YOU