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Contact: Eva Spiegel (916) 658-8228, (530) 400-9068 cell
Aug. 18, 2014

FOR IMMEDIATE RELEASE
 

League of California Cities Executive Director to Testify Before CalPERS Board of Administration on Need to Reject Policies to Expand Pensionable Compensation and Undermine PEPRA

Proposed Regulations Would Dramatically Increase Costs to Local Agencies and Undermine the 2012 Pension Reforms


Who
  • Chris McKenzie, League of California Cities Executive Director 
What 
 
The League of California Cities warns that any broadening of how CalPERS calculates “pensionable compensation” beyond “base pay” will further strain cities struggling to recover from the Great Recession and undermine the reforms in the 2012 Public Employees’ Pension Reform Act (PEPRA). The 450 cities that participate in CalPERS are already facing major pension rate increases in the next six years to address investment losses, changing actuarial assumptions about longevity and changes in risk pooling. Many are struggling to manage those increases that could reach or exceed 55 percent, and any further increases could put some at serious financial risk of survival.
 
The CalPERS Board of Administration will be meeting to consider proposed regulations that would specify the CalPERS’ definition of “pensionable compensation” for employees hired under the 2012 Public Employees’ Pension Reform Act (PEPRA). The draft regulations contain approximately 100 categories of “special pay” (starting on page 2 of the draft regulations — www.cacities.org/pensioncompregs ) that would, in addition to base pay, be defined as “pensionable compensation.”
 
The League of California Cities submitted written comments on June 27 to CalPERS and urged the Board of Administration to reject the proposed regulations and direct that they be modified to only use “base pay” to calculate Pensionable Compensation. The League also urged the Board to reject the inclusion of “temporary upgrade pay” in the calculation, which would dramatically increase costs on participating agencies. The League argues the proposed regulations are inconsistent with the intent and meaning of PEPRA.
 
When
 
Tuesday, Aug. 19, 2014, 9:00 a.m.
 
Where 
 
CalPERS Auditorium
Lincoln Plaza North
400 Q Street
Sacramento, CA
 
Established in 1898, the League of California Cities is a nonprofit statewide association that advocates for cities with the state and federal governments and provides education and training services to elected and appointed city officials.

Established in 1898, the League of California Cities is a nonprofit statewide association that advocates for cities with the state and federal governments and provides education and training services to elected and appointed city officials.
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