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Legislative News

Articles for tag retirement


CalPERS Lowers Investment Funds Discount Rate

Posted: 12/21/2016 Tags: benefits policy retirement salary Tags Views: 623

On December 21, 2016, the CalPERS Board of Directors Investment Committee approved a reduction in the discount rate from 7.5% to 7.0% over a three-year phase. CalPERS financial consultants have been concerned about the current state of negative cash flow over the next 10 years. Lower returns in early years will diminish the compounding interest of later years. According to Reuters, “State and local governments could see their pension contributions rise by as much as $2 billion in five years. But for employees, the hit could be another percentage point or more in payroll deductions.” CalPERS views this reduction in the discount rate as a necessary way to improve its current situation.

This means that state employees will be paying more towards their retirement benefits in the long run as a direct result of the discounted rate. The state needs to protect the pensions. To cover that, state employees will end up having to pay more from their current paychecks towards their retirement benefits. At this point, we do not know exactly how much will come out of employee paychecks.

"This was a very difficult decision to make, but it is an important step to ensure the long-term sustainability of the Fund," said Rob Feckner, president of the CalPERS Board of Administration.

The new discount rate for the state will go into effect on July 1, 2017 at 7.375% and then be phased down incrementally to 7.25% for Fiscal Year (FY) 2018-19 and the again phased down to 7.0% for FY 2019-20.

ACSS will continue to follow this issue closely and provide you with updates that affect excluded state employees.

>>Click here to read the full article from CalPERS.


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Rank and File reach a Tentative Agreement and Pay Raise – How this Affects Excluded Employees

Posted: 12/5/2016 Tags: bargaining policy retirement salary Tags Views: 3671

Over the past month, ACSS has followed the bargaining between California’s largest union of state employees (SEIU Local 1000) and the State of California over a new contract. We have also been following the reports on the possibility of a strike and how the State of California sought to halt the potentially disruptive strike by seeking an injunction against SEIU Local 1000 employees. The Brown administration has been arguing that the potential strike would be illegal because of the no-strike clause. On Friday December 2nd, 2016, SEIU Local 1000 announced that the strike, set for December 5th, had been called off.

Over the weekend, a tentative agreement had been reportedly reached between L1000 and the state. As reported by SEIU Local 1000, the new tentative agreement includes:

  • A $2,500 one-time signing bonus
  • 11.5% GSI total spread over 3 years: 4% effective 7/1/2017, 4% GSI effective 7/1/2018 and 3.5% GSI effective 7/1/2019.
  • Only 2.3% total in prefunding contributions for retirement health benefits over those 3 years
  • Special salary adjustments in over 30 classifications

ACSS will review and analyze the tentative agreement. We plan to reach out to CalHR to discuss the impact of this potential agreement on excluded employees related to SEIU Bargaining Units. ACSS is following this issue closely and will continue to bring updates to managers and supervisors who may be affected by it.


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Pensions in the News

Posted: 11/4/2016 Tags: benefits pension retirement Tags Views: 1012

ACSS fights to protect your pension and to provide members with relevant news for excluded state employees in regards to pension protection. Below are some informative and insightful recent publications that report on the current pension protection issue in California:

Jerry Brown touted his pension reforms as a game-changer. But they’ve done little to rein in costs
(October 28, 2016 - LA Times)

Generous pensions: Will the courts give government a way out?
(October 30, 2016 - San Jose Mercury News)

Marin ‘pension spiking’ appeal draws national attention
(October 30, 2016 - Marin Independent Journal)


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Additional Updates for Salary and Pay Adjustments for Excluded Employees

Posted: 10/7/2016 Tags: benefits legislation pension representation retirement salary Tags Views: 6416

BU02 Retirement Contribution

On September 30, 2016, CalHR released PML-025 in regards to Retirement Contribution Increases for Excluded Employees Affiliated with Bargaining Unit 2.

>> Click here to read more...

Pay increases and adjustments - BU07

On October 5, 2016, Cal HR released Pay Letter 16-18 regarding pay increases for excluded employees associated with Bargaining Unit 7 (Protective Services and Public Safety):

>> Click here to read more...

Prefunding Implementation M06 and S06

On October 6, 2016, CalHR released PML-027 in regards to Other Post Employment Benefits (OPEB) Prefunding Implementation.

>> Click here to read more...


ACSS will continue to follow up and advocate for additional special salary adjustments on behalf of excluded employees related to all other bargaining units across the state.


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Prefunding Retirement Benefit Contributions – Implementation for S06, M06 and other Excluded Employees


On August 26, 2016, ACSS met with CalHR to discuss Other Post Employment Benefit (OPEB) Prefunding for supervisors and managers tied to Bargaining Unit 6 (Peace Officers).

Below are the important issues that were discussed at the meeting:

  • Excluded Employee General Salary Increases
  • Other Post Employment Benefit (OPEB) Prefunding Implementation
  • Processing Prefunding Deductions
  • Delaying Prefunding
  • Retirement Health Benefits and Vesting for New Employees

  >> Click here to read the full text of the article.


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