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Governor Calls CalPERS Board to Task for Including Temporary Pay for Pension Calculations

League Agrees with Governor, Urges Board to Reconsider Full Action

August 20, 2014
The CalPERS Board of Administration today voted 7-5 to approve new regulations that include close to 100 categories of “special pay” as pensionable for employees hired after the Public Employees’ Pension Reform Act (PEPRA).
 
League Executive Director Chris McKenzie testified yesterday before the CalPERS Pension and Benefits Committee urging the members to consider the fiscal impact on cities. Gov. Jerry Brown quickly criticized today’s action after he requested “temporary upgrade pay” to be excluded.

“Today CalPERS got it wrong. This vote undermines the pension reforms enacted just two years ago. I’ve asked my staff to determine what actions can be taken to protect the integrity of the Public Employees’ Pension Reform Act,” said Governor Brown.
 
The League is in complete agreement with the Governor’s assessment that “temporary upgrade pay” should not be part of an employee’s final pension calculation but urged the committee yesterday to conduct a holistic evaluation of all “ad hoc” pay categories that are prohibited by PEPRA. The board’s approval of the regulations weakens PEPRA, which was passed in 2012 and amended in 2013. California cities continue to recover from the recession while shouldering the weight of rate increases in the next six years.


 
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