Tagged: pension

When state lawmakers were beating their chests last year about the need to reduce pension liabilities, they didn’t actually do anything about the largest liability of all. 

The California State Teachers Retirement System – known as CalSTRS – is facing a projected $70 billion shortfall.   KPCC’s Julie Small attended a sobering hearing Wednesday on the state’s options for closing the gap.

The author of a bill that would exempt 20,000 California union members from last year’s pension overhaul is defending the measure against criticism that it breaks a promise to voters who just approved tax increases. 

Democratic Assemblyman Luis Alejo says he introduced the bill because of a conflict between the new state pension law and U.S. labor law that applies to 20,000 local and regional public transit workers.  As a result, he says, $2 billion in federal transportation funds are at risk.

A bill sitting on California Governor Jerry Brown’s desk could provide a retirement savings plan for private sector employees who don’t have one.

It passed on a party line vote the last day of the legislative session, after the Governor requested changes.

The bill establishes a board to make sure it doesn’t cost taxpayers money. And last minute changes to the bill give the legislature final authorization.

Democratic Senator Kevin DeLeon (Day-lee-OWN) authored the bill. He says more than seven million private sector employees don’t have access to a retirement plan.