Public Pensions for Retirement Security

Report #204, February 2011
Public Pensions for Retirement Security

Full Report

Executive Summary

Press Release

FOR IMMEDIATE RELEASE
February 24, 2011

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Commission Calls for Pension Roll-Back for Current Workers

The Little Hoover Commission on Thursday urged the Governor and the Legislature to establish the legal authority for the state and local governments to freeze pension benefits for current workers. The Commission recommends that, going forward, current workers accrue benefits under more sustainable pension plans. Payments to current retirees would not be affected.

“State and local governments cannot solve this problem without addressing the mounting pension obligations of current employees,” said Daniel W. Hancock, chairman of the Little Hoover Commission.

In its report, Public Pensions for Retirement Security, the Commission recommends a “hybrid” model that combines a lower defined-benefit pension formula with an employer-matched and risk-managed defined-contribution plan. The Commission also suggests the state explore options to extend Social Security old-age benefits to all uncovered state and local public employees, following a model adopted for federal employees 25 years ago.

The Commission acknowledges the significant challenges to modifying pension benefits for current workers. Nonetheless, the Governor and Legislature should set uniform standards for the 85 defined-benefit pension plans in California, including:

  • A cap in the $80,000 - $90,000 range of the maximum salary that could be used to calculate pension benefits.
     
  • Eligibility ages for pension benefits that do not encourage early retirement.
     
  • A requirement that employees and employers share the normal costs of funding their pension plans.
     
  • Clear definitions of final compensation to prevent “spiking.”
     
  • A prohibition against contribution “holidays” when employers do not pay into the funds.
     
  • A ban on retroactive pension increases.
     
  • Steps to improve accountability and transparency.
     

The Little Hoover Commission is a bipartisan and independent state agency charged with recommending ways to increase the efficiency and effectiveness of state programs. The Commission’s recommendations are sent to the governor and the Legislature. To obtain a copy of the report, Public Pensions for Retirement Security, contact the Commission or visit its Web site: www.lhc.ca.gov.

Fact Sheet

Study Description

For this study, the Commission examined public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission studied the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommended changes for a healthier system in the future.

Agenda

Overview

In this report, the Commission calls for a pension roll-back for current workers.

During its review, the Commission found that growing pension obligations are threatening financial security for the state and for California cities and counties.

The Commission recommends the adoption of several measures designed to curb pension costs generated by existing and future public employees, including altering future unaccrued benefits for current workers, considering a “hybrid” retirement plan, a cap on salaries used to calculate pensions and other reforms.

Print Agenda
  • September 23
    2010
    Public Pensions
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Public Pension Plans
    Thursday, September 23, 2010, at 9:00 a.m.
    State Capitol, Room 437 
    Sacramento, CA


    Opening Remarks

    Making the numbers work: Model policies for public retirement funding

    1. John E. Bartel, President, Bartel Associates, LLC, and member, California Actuarial Advisory Panel (Written Testimony)
       

    Realigning costs and expectations: Union efforts at the bargaining table

    1. Jon Hamm, Chief Executive Officer, California Association of Highway Patrolmen (Written Testimony)
       

    15-MINUTE BREAK


    Addressing the issue for the future: One city's reform initiative

    1. Chuck Reed, Mayor, City of San Jose (Written Testimony)
      ​​​​​​​

    Getting past SB 400: The role of CalPERS

    1. Ann Boynton, Deputy Executive Officer, Benefits Administration, California Public Employees’ Retirement System (Written Testimony)
      ​​​​​​​

    Public Comments

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    September 21, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, September 23, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

    The Commission will hear from Ann Boynton, the deputy executive officer of benefits administration for the California Public Employees’ Retirement System. The Commission also will hear from John Bartel, the president of the actuarial consulting firm Bartel Associates; Chuck Reed, the mayor of San Jose; and Jon Hamm, the chief executive officer of the California Association of Highway Patrolmen.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

    On Wednesday, September 22, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to gather general information about the California State Teachers’ Retirement System. The meeting will begin at 3:00 p.m. in the Legislative Counsel’s Conference Room at 925 L Street, in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, September 15, 2010.

  • September 22
    2010
    Public Pensions
    3:00 p.m., Legislative Counsel Conference Room, Lower Level, 925 L
    Subcommittee Meeting
    Agenda

    AGENDA

    Subcommittee Committee Meeting on Public Pensions
    Wednesday, September 22, 2010, 3:00 - 5:00 p.m.
    Legislative Counsel’s Conference Room, Lower Level
    925 L Street, Sacramento, CA 


    Meeting Goal: To gather general information about the California State Teachers’ Retirement System.

    3:00 – 3:15 p.m.

    Welcome and Opening Remarks
    Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

    Introductions – All

    Commission Study Process
    Stuart Drown, Executive Director, Little Hoover Commission

    3:15 – 4:45 p.m.

    Discussion

    Ed Derman, Deputy Chief Executive Officer, Plan Design and Communication, CalSTRS

    • Overview of membership, benefits, eligibility and contribution levels.
       
    • The role of the state Legislature.
       
    • Current funding challenges and options.
       
    • Challenges of coordinating Social Security coverage.
       
    • Mechanisms to detect and discourage spiking and unusual salary increases.
       

    4:45 – 5:00 p.m.

    Wrap-up

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    September 21, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, September 23, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

    The Commission will hear from Ann Boynton, the deputy executive officer of benefits administration for the California Public Employees’ Retirement System. The Commission also will hear from John Bartel, the president of the actuarial consulting firm Bartel Associates; Chuck Reed, the mayor of San Jose; and Jon Hamm, the chief executive officer of the California Association of Highway Patrolmen.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

    On Wednesday, September 22, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to gather general information about the California State Teachers’ Retirement System. The meeting will begin at 3:00 p.m. in the Legislative Counsel’s Conference Room at 925 L Street, in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, September 15, 2010.

  • August 20
    2010
    Public Pensions
    10:00 a.m., Fifth Floor Conference Room, Hall of Administration, 33
    Subcommittee Meeting
    Agenda

    AGENDA

    Subcommittee Meeting on Public Pensions 
    Friday, August 20, 2010, 10:00 a.m. -12:00 p.m. 
    Hall of Administration, Fifth Floor Conference Room
    333 W. Santa Ana Blvd., Santa Ana, CA 


    Meeting Goal: Bring together Orange County stakeholders to discuss recent changes to the county’s employee pension plan and how the parties came to agreement.

    10:00 – 10:15 a.m.

    Welcome and Opening Remarks
    Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

    Introductions – All

    Commission Study Process
    Stuart Drown, Executive Director, Little Hoover Commission

    10:15 – 10:30 a.m.

    Background briefing: Finding common ground on a hybrid plan – Supervisor Bill Campbell

    10:30 a.m. - 12:00 p.m. 

    Discussion:

    • What factors in Orange County created an opening to change the pension system?
       
    • How were the policy goals for the new system shaped? How have the goals changed from the previous approach?
       
    • How will the county know if the new model is a success?
       
    • Should the “hybrid” model be replicated in other pension systems? Could it?
    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    August 4, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Friday, August 20, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the recent changes to Orange County’s employee pension system and its new hybrid defined benefit/defined contribution plan. The meeting will begin at 10 a.m. in the Fifth Floor Conference Room of the Hall of Administration, 333 W. Santa Ana Blvd., in Santa Ana, California.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Friday, August 13, 2010.

  • June 24
    2010
    Public Pensions
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Public Pension Plans
    Thursday, June 24, 2010, at 9:00 a.m. 
    State Capitol, Room 437 
    Sacramento, CA


    Opening Remarks

    Shifting risks and responsibilities: A historical perspective of retirement systems

    1. Teresa Ghilarducci, Author and Professor of Economic Policy Analysis, The New School (Written Testimony)
       

    Finding common ground to move forward

    1. Marcia Fritz, President, California Foundation for Fiscal Responsibility (Written Testimony)
       
    2. Dave Low, Director, Governmental Relations, California School Employees Association (Written Testimony, Attachment)
       

    Leading the way or racing to the bottom: State retirement system reforms

    1. Keith Brainard, Research Director, National Association of State Retirement Administrators (Written Testimony)


    Public Comments

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    June 10, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, June 24, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

    The Commission will hear from Teresa Ghilarducci, author and professor of economic policy analysis at The New School for Social Research in New York City. The Commission also will hear from Marcia Fritz, president of the California Foundation for Fiscal Responsibility, and David Low, director of Governmental Relations for the California School Employees Association. Finally, the Commission will hear from Keith Brainard, research director for the National Association of State Retirement Administrators.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

    On Wednesday, June 23, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the legal landscape for pension reform. The meeting will begin at 2 p.m. in Room 340 of the Library and Courts Building II, 900 N Street, in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, June 17, 2010.

  • June 23
    2010
    Public Pensions
    2:00 p.m., Library and Courts Building II, Room 340, 900 N Street,
    Subcommittee Meeting
    Agenda

    AGENDA

    Subcommittee Meeting on Public Pensions
    Wednesday, June 23, 2010, 2:00 - 4:00 p.m.
    Library and Courts II, Room 340
    900 N Street, Sacramento, CA


    Meeting Goals:

    • Bring together legal experts on California pension law.
       
    • Discuss legal options and limits to modifying retirement allowances and benefits.
       
    • Identify legal distinctions of “1937 Act” county pension systems.
       
    • Clarify role of state Legislature to address pension costs at state and local level.
       

    2:00 – 2:15 p.m.           

    Welcome and Opening Remarks 
    Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

    Introductions – All

    Commission Study Process 
    Stuart Drown, Executive Director, Little Hoover Commission

    2:15 – 2:30 p.m.         

    “Public Pension Plan Reform: The Legal Framework,” by Amy B. Monahan, associate professor; University of Minnesota Law School.

    2:30 – 2:40 p.m.          

    “Identifying Solutions in Difficult Economic Times,” by Jeffrey C. Chang; Chang, Ruthenberg & Long.
    Additional correspondence from Jeffrey Chang and Ken Ruthenberg

    2:40 – 4:00 p.m.      

    Discussion
     

    Comments Submitted by Members of the Public

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    June 10, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, June 24, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

    The Commission will hear from Teresa Ghilarducci, author and professor of economic policy analysis at The New School for Social Research in New York City. The Commission also will hear from Marcia Fritz, president of the California Foundation for Fiscal Responsibility, and David Low, director of Governmental Relations for the California School Employees Association. Finally, the Commission will hear from Keith Brainard, research director for the National Association of State Retirement Administrators.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

    On Wednesday, June 23, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the legal landscape for pension reform. The meeting will begin at 2 p.m. in Room 340 of the Library and Courts Building II, 900 N Street, in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, June 17, 2010.

  • April 22
    2010
    Public Pensions
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Public Pension Plans
    Thursday, April 22, 2010, at 9:00 a.m.
    State Capitol, Room 437 
    Sacramento, CA


    Opening Remarks

    Defining the Problem

    1. Girard Miller, Retirement Plan Consultant and Commentator  (Written Testimony)
       
    • Attachment 1: BEST PRACTICE: Governance of Public Employee Post-Retirement Benefits Systems (2010) (CORBA) (new)
       
    • Attachment 2: "New Normal" Retirement Plan Designs


    Understanding the Employer's Perspective

    1. Anthony Oliveira, Member, CalPERS Board of Administration; President, California State Association of Countiesment (Written Testimony)
      ​​​​​​​

    Employee Efforts at the Bargaining Table

    1. Ron Cottingham, President, Peace Officers Research Association of California (Written Testimony)
      ​​​​​​​

    Guiding Principles for Sustainability

    1. Richard Stensrud, Chief Executive Officer, Sacramento County Employees’ Retirement System (Written Testimony)
      ​​​​​​​

    Additional material from hearing:

    • University of Minnesota Law School (Report)
      ​​​​​​​

    Comments Submitted by Members of the Public

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    April 12, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, April 22, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission will examine public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for a healthier system in the future. At this hearing, the Commission seeks to understand key issues surrounding public employee pension plans in California.

    The Commission will hear from Girard Miller, a retirement plan consultant and commentator, on problems and solutions within the pension systems. The Commission also will hear from Tony Oliveira, president of the California State Association of Counties and a member of the CalPERS Board of Administration. Following him, Ron Cottingham, president of the Peace Officers Research Association of California, also will speak to the Commission. Richard Stensrud, the chief executive officer of the Sacramento County Employees’ Retirement System, will speak. Finally, David Crane, special advisor to the governor for jobs and economic growth, will speak.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

    On Wednesday, April 21, 2010, the Commission staff will conduct a briefing for Commissioners on the agenda for the following day’s hearing. The meeting will begin at 3 p.m. in the Legislative Counsel Conference Room in the lower level of 925 L Street in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, April 15, 2010.

  • April 21
    2010
    Cancelled - Public Pensions
    3:00 p.m., 925 L Street, Sacramento, CA
    Subcommittee Meeting
    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    April 15, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    The Little Hoover Commission has added a teleconference location for its previously noticed public hearing on Thursday, April 22, 2010. The hearing will be in Room 437 of the State Capitol in Sacramento. The teleconference location, which also will be accessible by the public, will be: 21 C Museum Hotel, 700 West Main Street, Louisville, Kentucky.

    Further, the Commission has canceled the staff briefing it had scheduled for 3 p.m. Wednesday, April 21, in the Legislative Counsel Conference Room, Lower Level, 925 L Street, in Sacramento. This cancellation applies only to the Wednesday briefing on the agenda; the Thursday, April 22, hearing will continue as planned.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov.

September 23
2010
Public Pensions
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Public Pension Plans
Thursday, September 23, 2010, at 9:00 a.m.
State Capitol, Room 437 
Sacramento, CA


Opening Remarks

Making the numbers work: Model policies for public retirement funding

  1. John E. Bartel, President, Bartel Associates, LLC, and member, California Actuarial Advisory Panel (Written Testimony)
     

Realigning costs and expectations: Union efforts at the bargaining table

  1. Jon Hamm, Chief Executive Officer, California Association of Highway Patrolmen (Written Testimony)
     

15-MINUTE BREAK


Addressing the issue for the future: One city's reform initiative

  1. Chuck Reed, Mayor, City of San Jose (Written Testimony)
    ​​​​​​​

Getting past SB 400: The role of CalPERS

  1. Ann Boynton, Deputy Executive Officer, Benefits Administration, California Public Employees’ Retirement System (Written Testimony)
    ​​​​​​​

Public Comments

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
September 21, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, September 23, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

The Commission will hear from Ann Boynton, the deputy executive officer of benefits administration for the California Public Employees’ Retirement System. The Commission also will hear from John Bartel, the president of the actuarial consulting firm Bartel Associates; Chuck Reed, the mayor of San Jose; and Jon Hamm, the chief executive officer of the California Association of Highway Patrolmen.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

On Wednesday, September 22, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to gather general information about the California State Teachers’ Retirement System. The meeting will begin at 3:00 p.m. in the Legislative Counsel’s Conference Room at 925 L Street, in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, September 15, 2010.

September 22
2010
Public Pensions
3:00 p.m., Legislative Counsel Conference Room, Lower Level, 925 L Street, Sacramento, CA
Subcommittee Meeting
Agenda

AGENDA

Subcommittee Committee Meeting on Public Pensions
Wednesday, September 22, 2010, 3:00 - 5:00 p.m.
Legislative Counsel’s Conference Room, Lower Level
925 L Street, Sacramento, CA 


Meeting Goal: To gather general information about the California State Teachers’ Retirement System.

3:00 – 3:15 p.m.

Welcome and Opening Remarks
Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

Introductions – All

Commission Study Process
Stuart Drown, Executive Director, Little Hoover Commission

3:15 – 4:45 p.m.

Discussion

Ed Derman, Deputy Chief Executive Officer, Plan Design and Communication, CalSTRS

  • Overview of membership, benefits, eligibility and contribution levels.
     
  • The role of the state Legislature.
     
  • Current funding challenges and options.
     
  • Challenges of coordinating Social Security coverage.
     
  • Mechanisms to detect and discourage spiking and unusual salary increases.
     

4:45 – 5:00 p.m.

Wrap-up

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
September 21, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, September 23, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

The Commission will hear from Ann Boynton, the deputy executive officer of benefits administration for the California Public Employees’ Retirement System. The Commission also will hear from John Bartel, the president of the actuarial consulting firm Bartel Associates; Chuck Reed, the mayor of San Jose; and Jon Hamm, the chief executive officer of the California Association of Highway Patrolmen.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

On Wednesday, September 22, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to gather general information about the California State Teachers’ Retirement System. The meeting will begin at 3:00 p.m. in the Legislative Counsel’s Conference Room at 925 L Street, in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, September 15, 2010.

August 20
2010
Public Pensions
10:00 a.m., Fifth Floor Conference Room, Hall of Administration, 333 W. Santa Ana Blvd., Santa Ana, CA
Subcommittee Meeting
Agenda

AGENDA

Subcommittee Meeting on Public Pensions 
Friday, August 20, 2010, 10:00 a.m. -12:00 p.m. 
Hall of Administration, Fifth Floor Conference Room
333 W. Santa Ana Blvd., Santa Ana, CA 


Meeting Goal: Bring together Orange County stakeholders to discuss recent changes to the county’s employee pension plan and how the parties came to agreement.

10:00 – 10:15 a.m.

Welcome and Opening Remarks
Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

Introductions – All

Commission Study Process
Stuart Drown, Executive Director, Little Hoover Commission

10:15 – 10:30 a.m.

Background briefing: Finding common ground on a hybrid plan – Supervisor Bill Campbell

10:30 a.m. - 12:00 p.m. 

Discussion:

  • What factors in Orange County created an opening to change the pension system?
     
  • How were the policy goals for the new system shaped? How have the goals changed from the previous approach?
     
  • How will the county know if the new model is a success?
     
  • Should the “hybrid” model be replicated in other pension systems? Could it?
Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
August 4, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Friday, August 20, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the recent changes to Orange County’s employee pension system and its new hybrid defined benefit/defined contribution plan. The meeting will begin at 10 a.m. in the Fifth Floor Conference Room of the Hall of Administration, 333 W. Santa Ana Blvd., in Santa Ana, California.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Friday, August 13, 2010.

June 24
2010
Public Pensions
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Public Pension Plans
Thursday, June 24, 2010, at 9:00 a.m. 
State Capitol, Room 437 
Sacramento, CA


Opening Remarks

Shifting risks and responsibilities: A historical perspective of retirement systems

  1. Teresa Ghilarducci, Author and Professor of Economic Policy Analysis, The New School (Written Testimony)
     

Finding common ground to move forward

  1. Marcia Fritz, President, California Foundation for Fiscal Responsibility (Written Testimony)
     
  2. Dave Low, Director, Governmental Relations, California School Employees Association (Written Testimony, Attachment)
     

Leading the way or racing to the bottom: State retirement system reforms

  1. Keith Brainard, Research Director, National Association of State Retirement Administrators (Written Testimony)


Public Comments

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
June 10, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, June 24, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

The Commission will hear from Teresa Ghilarducci, author and professor of economic policy analysis at The New School for Social Research in New York City. The Commission also will hear from Marcia Fritz, president of the California Foundation for Fiscal Responsibility, and David Low, director of Governmental Relations for the California School Employees Association. Finally, the Commission will hear from Keith Brainard, research director for the National Association of State Retirement Administrators.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

On Wednesday, June 23, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the legal landscape for pension reform. The meeting will begin at 2 p.m. in Room 340 of the Library and Courts Building II, 900 N Street, in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, June 17, 2010.

June 23
2010
Public Pensions
2:00 p.m., Library and Courts Building II, Room 340, 900 N Street, Sacramento, CA
Subcommittee Meeting
Agenda

AGENDA

Subcommittee Meeting on Public Pensions
Wednesday, June 23, 2010, 2:00 - 4:00 p.m.
Library and Courts II, Room 340
900 N Street, Sacramento, CA


Meeting Goals:

  • Bring together legal experts on California pension law.
     
  • Discuss legal options and limits to modifying retirement allowances and benefits.
     
  • Identify legal distinctions of “1937 Act” county pension systems.
     
  • Clarify role of state Legislature to address pension costs at state and local level.
     

2:00 – 2:15 p.m.           

Welcome and Opening Remarks 
Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

Introductions – All

Commission Study Process 
Stuart Drown, Executive Director, Little Hoover Commission

2:15 – 2:30 p.m.         

“Public Pension Plan Reform: The Legal Framework,” by Amy B. Monahan, associate professor; University of Minnesota Law School.

2:30 – 2:40 p.m.          

“Identifying Solutions in Difficult Economic Times,” by Jeffrey C. Chang; Chang, Ruthenberg & Long.
Additional correspondence from Jeffrey Chang and Ken Ruthenberg

2:40 – 4:00 p.m.      

Discussion
 

Comments Submitted by Members of the Public

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
June 10, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, June 24, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

The Commission will hear from Teresa Ghilarducci, author and professor of economic policy analysis at The New School for Social Research in New York City. The Commission also will hear from Marcia Fritz, president of the California Foundation for Fiscal Responsibility, and David Low, director of Governmental Relations for the California School Employees Association. Finally, the Commission will hear from Keith Brainard, research director for the National Association of State Retirement Administrators.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

On Wednesday, June 23, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the legal landscape for pension reform. The meeting will begin at 2 p.m. in Room 340 of the Library and Courts Building II, 900 N Street, in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, June 17, 2010.

April 22
2010
Public Pensions
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Public Pension Plans
Thursday, April 22, 2010, at 9:00 a.m.
State Capitol, Room 437 
Sacramento, CA


Opening Remarks

Defining the Problem

  1. Girard Miller, Retirement Plan Consultant and Commentator  (Written Testimony)
     
  • Attachment 1: BEST PRACTICE: Governance of Public Employee Post-Retirement Benefits Systems (2010) (CORBA) (new)
     
  • Attachment 2: "New Normal" Retirement Plan Designs


Understanding the Employer's Perspective

  1. Anthony Oliveira, Member, CalPERS Board of Administration; President, California State Association of Countiesment (Written Testimony)
    ​​​​​​​

Employee Efforts at the Bargaining Table

  1. Ron Cottingham, President, Peace Officers Research Association of California (Written Testimony)
    ​​​​​​​

Guiding Principles for Sustainability

  1. Richard Stensrud, Chief Executive Officer, Sacramento County Employees’ Retirement System (Written Testimony)
    ​​​​​​​

Additional material from hearing:

  • University of Minnesota Law School (Report)
    ​​​​​​​

Comments Submitted by Members of the Public

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
April 12, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, April 22, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission will examine public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for a healthier system in the future. At this hearing, the Commission seeks to understand key issues surrounding public employee pension plans in California.

The Commission will hear from Girard Miller, a retirement plan consultant and commentator, on problems and solutions within the pension systems. The Commission also will hear from Tony Oliveira, president of the California State Association of Counties and a member of the CalPERS Board of Administration. Following him, Ron Cottingham, president of the Peace Officers Research Association of California, also will speak to the Commission. Richard Stensrud, the chief executive officer of the Sacramento County Employees’ Retirement System, will speak. Finally, David Crane, special advisor to the governor for jobs and economic growth, will speak.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

On Wednesday, April 21, 2010, the Commission staff will conduct a briefing for Commissioners on the agenda for the following day’s hearing. The meeting will begin at 3 p.m. in the Legislative Counsel Conference Room in the lower level of 925 L Street in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, April 15, 2010.

April 21
2010
Cancelled - Public Pensions
3:00 p.m., 925 L Street, Sacramento, CA
Subcommittee Meeting
Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
April 15, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

The Little Hoover Commission has added a teleconference location for its previously noticed public hearing on Thursday, April 22, 2010. The hearing will be in Room 437 of the State Capitol in Sacramento. The teleconference location, which also will be accessible by the public, will be: 21 C Museum Hotel, 700 West Main Street, Louisville, Kentucky.

Further, the Commission has canceled the staff briefing it had scheduled for 3 p.m. Wednesday, April 21, in the Legislative Counsel Conference Room, Lower Level, 925 L Street, in Sacramento. This cancellation applies only to the Wednesday briefing on the agenda; the Thursday, April 22, hearing will continue as planned.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov.

Print Agenda
  • September 23
    2010
    Public Pensions
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Public Pension Plans
    Thursday, September 23, 2010, at 9:00 a.m.
    State Capitol, Room 437 
    Sacramento, CA


    Opening Remarks

    Making the numbers work: Model policies for public retirement funding

    1. John E. Bartel, President, Bartel Associates, LLC, and member, California Actuarial Advisory Panel (Written Testimony)
       

    Realigning costs and expectations: Union efforts at the bargaining table

    1. Jon Hamm, Chief Executive Officer, California Association of Highway Patrolmen (Written Testimony)
       

    15-MINUTE BREAK


    Addressing the issue for the future: One city's reform initiative

    1. Chuck Reed, Mayor, City of San Jose (Written Testimony)
      ​​​​​​​

    Getting past SB 400: The role of CalPERS

    1. Ann Boynton, Deputy Executive Officer, Benefits Administration, California Public Employees’ Retirement System (Written Testimony)
      ​​​​​​​

    Public Comments

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    September 21, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, September 23, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

    The Commission will hear from Ann Boynton, the deputy executive officer of benefits administration for the California Public Employees’ Retirement System. The Commission also will hear from John Bartel, the president of the actuarial consulting firm Bartel Associates; Chuck Reed, the mayor of San Jose; and Jon Hamm, the chief executive officer of the California Association of Highway Patrolmen.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

    On Wednesday, September 22, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to gather general information about the California State Teachers’ Retirement System. The meeting will begin at 3:00 p.m. in the Legislative Counsel’s Conference Room at 925 L Street, in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, September 15, 2010.

  • September 22
    2010
    Public Pensions
    3:00 p.m., Legislative Counsel Conference Room, Lower Level, 925 L
    Subcommittee Meeting
    Agenda

    AGENDA

    Subcommittee Committee Meeting on Public Pensions
    Wednesday, September 22, 2010, 3:00 - 5:00 p.m.
    Legislative Counsel’s Conference Room, Lower Level
    925 L Street, Sacramento, CA 


    Meeting Goal: To gather general information about the California State Teachers’ Retirement System.

    3:00 – 3:15 p.m.

    Welcome and Opening Remarks
    Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

    Introductions – All

    Commission Study Process
    Stuart Drown, Executive Director, Little Hoover Commission

    3:15 – 4:45 p.m.

    Discussion

    Ed Derman, Deputy Chief Executive Officer, Plan Design and Communication, CalSTRS

    • Overview of membership, benefits, eligibility and contribution levels.
       
    • The role of the state Legislature.
       
    • Current funding challenges and options.
       
    • Challenges of coordinating Social Security coverage.
       
    • Mechanisms to detect and discourage spiking and unusual salary increases.
       

    4:45 – 5:00 p.m.

    Wrap-up

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    September 21, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, September 23, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

    The Commission will hear from Ann Boynton, the deputy executive officer of benefits administration for the California Public Employees’ Retirement System. The Commission also will hear from John Bartel, the president of the actuarial consulting firm Bartel Associates; Chuck Reed, the mayor of San Jose; and Jon Hamm, the chief executive officer of the California Association of Highway Patrolmen.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

    On Wednesday, September 22, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to gather general information about the California State Teachers’ Retirement System. The meeting will begin at 3:00 p.m. in the Legislative Counsel’s Conference Room at 925 L Street, in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, September 15, 2010.

  • August 20
    2010
    Public Pensions
    10:00 a.m., Fifth Floor Conference Room, Hall of Administration, 33
    Subcommittee Meeting
    Agenda

    AGENDA

    Subcommittee Meeting on Public Pensions 
    Friday, August 20, 2010, 10:00 a.m. -12:00 p.m. 
    Hall of Administration, Fifth Floor Conference Room
    333 W. Santa Ana Blvd., Santa Ana, CA 


    Meeting Goal: Bring together Orange County stakeholders to discuss recent changes to the county’s employee pension plan and how the parties came to agreement.

    10:00 – 10:15 a.m.

    Welcome and Opening Remarks
    Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

    Introductions – All

    Commission Study Process
    Stuart Drown, Executive Director, Little Hoover Commission

    10:15 – 10:30 a.m.

    Background briefing: Finding common ground on a hybrid plan – Supervisor Bill Campbell

    10:30 a.m. - 12:00 p.m. 

    Discussion:

    • What factors in Orange County created an opening to change the pension system?
       
    • How were the policy goals for the new system shaped? How have the goals changed from the previous approach?
       
    • How will the county know if the new model is a success?
       
    • Should the “hybrid” model be replicated in other pension systems? Could it?
    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    August 4, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Friday, August 20, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the recent changes to Orange County’s employee pension system and its new hybrid defined benefit/defined contribution plan. The meeting will begin at 10 a.m. in the Fifth Floor Conference Room of the Hall of Administration, 333 W. Santa Ana Blvd., in Santa Ana, California.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Friday, August 13, 2010.

  • June 24
    2010
    Public Pensions
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Public Pension Plans
    Thursday, June 24, 2010, at 9:00 a.m. 
    State Capitol, Room 437 
    Sacramento, CA


    Opening Remarks

    Shifting risks and responsibilities: A historical perspective of retirement systems

    1. Teresa Ghilarducci, Author and Professor of Economic Policy Analysis, The New School (Written Testimony)
       

    Finding common ground to move forward

    1. Marcia Fritz, President, California Foundation for Fiscal Responsibility (Written Testimony)
       
    2. Dave Low, Director, Governmental Relations, California School Employees Association (Written Testimony, Attachment)
       

    Leading the way or racing to the bottom: State retirement system reforms

    1. Keith Brainard, Research Director, National Association of State Retirement Administrators (Written Testimony)


    Public Comments

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    June 10, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, June 24, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

    The Commission will hear from Teresa Ghilarducci, author and professor of economic policy analysis at The New School for Social Research in New York City. The Commission also will hear from Marcia Fritz, president of the California Foundation for Fiscal Responsibility, and David Low, director of Governmental Relations for the California School Employees Association. Finally, the Commission will hear from Keith Brainard, research director for the National Association of State Retirement Administrators.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

    On Wednesday, June 23, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the legal landscape for pension reform. The meeting will begin at 2 p.m. in Room 340 of the Library and Courts Building II, 900 N Street, in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, June 17, 2010.

  • June 23
    2010
    Public Pensions
    2:00 p.m., Library and Courts Building II, Room 340, 900 N Street,
    Subcommittee Meeting
    Agenda

    AGENDA

    Subcommittee Meeting on Public Pensions
    Wednesday, June 23, 2010, 2:00 - 4:00 p.m.
    Library and Courts II, Room 340
    900 N Street, Sacramento, CA


    Meeting Goals:

    • Bring together legal experts on California pension law.
       
    • Discuss legal options and limits to modifying retirement allowances and benefits.
       
    • Identify legal distinctions of “1937 Act” county pension systems.
       
    • Clarify role of state Legislature to address pension costs at state and local level.
       

    2:00 – 2:15 p.m.           

    Welcome and Opening Remarks 
    Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

    Introductions – All

    Commission Study Process 
    Stuart Drown, Executive Director, Little Hoover Commission

    2:15 – 2:30 p.m.         

    “Public Pension Plan Reform: The Legal Framework,” by Amy B. Monahan, associate professor; University of Minnesota Law School.

    2:30 – 2:40 p.m.          

    “Identifying Solutions in Difficult Economic Times,” by Jeffrey C. Chang; Chang, Ruthenberg & Long.
    Additional correspondence from Jeffrey Chang and Ken Ruthenberg

    2:40 – 4:00 p.m.      

    Discussion
     

    Comments Submitted by Members of the Public

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    June 10, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, June 24, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

    The Commission will hear from Teresa Ghilarducci, author and professor of economic policy analysis at The New School for Social Research in New York City. The Commission also will hear from Marcia Fritz, president of the California Foundation for Fiscal Responsibility, and David Low, director of Governmental Relations for the California School Employees Association. Finally, the Commission will hear from Keith Brainard, research director for the National Association of State Retirement Administrators.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

    On Wednesday, June 23, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the legal landscape for pension reform. The meeting will begin at 2 p.m. in Room 340 of the Library and Courts Building II, 900 N Street, in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, June 17, 2010.

  • April 22
    2010
    Public Pensions
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Public Pension Plans
    Thursday, April 22, 2010, at 9:00 a.m.
    State Capitol, Room 437 
    Sacramento, CA


    Opening Remarks

    Defining the Problem

    1. Girard Miller, Retirement Plan Consultant and Commentator  (Written Testimony)
       
    • Attachment 1: BEST PRACTICE: Governance of Public Employee Post-Retirement Benefits Systems (2010) (CORBA) (new)
       
    • Attachment 2: "New Normal" Retirement Plan Designs


    Understanding the Employer's Perspective

    1. Anthony Oliveira, Member, CalPERS Board of Administration; President, California State Association of Countiesment (Written Testimony)
      ​​​​​​​

    Employee Efforts at the Bargaining Table

    1. Ron Cottingham, President, Peace Officers Research Association of California (Written Testimony)
      ​​​​​​​

    Guiding Principles for Sustainability

    1. Richard Stensrud, Chief Executive Officer, Sacramento County Employees’ Retirement System (Written Testimony)
      ​​​​​​​

    Additional material from hearing:

    • University of Minnesota Law School (Report)
      ​​​​​​​

    Comments Submitted by Members of the Public

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    April 12, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, April 22, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission will examine public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for a healthier system in the future. At this hearing, the Commission seeks to understand key issues surrounding public employee pension plans in California.

    The Commission will hear from Girard Miller, a retirement plan consultant and commentator, on problems and solutions within the pension systems. The Commission also will hear from Tony Oliveira, president of the California State Association of Counties and a member of the CalPERS Board of Administration. Following him, Ron Cottingham, president of the Peace Officers Research Association of California, also will speak to the Commission. Richard Stensrud, the chief executive officer of the Sacramento County Employees’ Retirement System, will speak. Finally, David Crane, special advisor to the governor for jobs and economic growth, will speak.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

    On Wednesday, April 21, 2010, the Commission staff will conduct a briefing for Commissioners on the agenda for the following day’s hearing. The meeting will begin at 3 p.m. in the Legislative Counsel Conference Room in the lower level of 925 L Street in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, April 15, 2010.

  • April 21
    2010
    Cancelled - Public Pensions
    3:00 p.m., 925 L Street, Sacramento, CA
    Subcommittee Meeting
    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    April 15, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    The Little Hoover Commission has added a teleconference location for its previously noticed public hearing on Thursday, April 22, 2010. The hearing will be in Room 437 of the State Capitol in Sacramento. The teleconference location, which also will be accessible by the public, will be: 21 C Museum Hotel, 700 West Main Street, Louisville, Kentucky.

    Further, the Commission has canceled the staff briefing it had scheduled for 3 p.m. Wednesday, April 21, in the Legislative Counsel Conference Room, Lower Level, 925 L Street, in Sacramento. This cancellation applies only to the Wednesday briefing on the agenda; the Thursday, April 22, hearing will continue as planned.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov.

September 23
2010
Public Pensions
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Public Pension Plans
Thursday, September 23, 2010, at 9:00 a.m.
State Capitol, Room 437 
Sacramento, CA


Opening Remarks

Making the numbers work: Model policies for public retirement funding

  1. John E. Bartel, President, Bartel Associates, LLC, and member, California Actuarial Advisory Panel (Written Testimony)
     

Realigning costs and expectations: Union efforts at the bargaining table

  1. Jon Hamm, Chief Executive Officer, California Association of Highway Patrolmen (Written Testimony)
     

15-MINUTE BREAK


Addressing the issue for the future: One city's reform initiative

  1. Chuck Reed, Mayor, City of San Jose (Written Testimony)
    ​​​​​​​

Getting past SB 400: The role of CalPERS

  1. Ann Boynton, Deputy Executive Officer, Benefits Administration, California Public Employees’ Retirement System (Written Testimony)
    ​​​​​​​

Public Comments

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
September 21, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, September 23, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

The Commission will hear from Ann Boynton, the deputy executive officer of benefits administration for the California Public Employees’ Retirement System. The Commission also will hear from John Bartel, the president of the actuarial consulting firm Bartel Associates; Chuck Reed, the mayor of San Jose; and Jon Hamm, the chief executive officer of the California Association of Highway Patrolmen.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

On Wednesday, September 22, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to gather general information about the California State Teachers’ Retirement System. The meeting will begin at 3:00 p.m. in the Legislative Counsel’s Conference Room at 925 L Street, in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, September 15, 2010.

September 22
2010
Public Pensions
3:00 p.m., Legislative Counsel Conference Room, Lower Level, 925 L Street, Sacramento, CA
Subcommittee Meeting
Agenda

AGENDA

Subcommittee Committee Meeting on Public Pensions
Wednesday, September 22, 2010, 3:00 - 5:00 p.m.
Legislative Counsel’s Conference Room, Lower Level
925 L Street, Sacramento, CA 


Meeting Goal: To gather general information about the California State Teachers’ Retirement System.

3:00 – 3:15 p.m.

Welcome and Opening Remarks
Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

Introductions – All

Commission Study Process
Stuart Drown, Executive Director, Little Hoover Commission

3:15 – 4:45 p.m.

Discussion

Ed Derman, Deputy Chief Executive Officer, Plan Design and Communication, CalSTRS

  • Overview of membership, benefits, eligibility and contribution levels.
     
  • The role of the state Legislature.
     
  • Current funding challenges and options.
     
  • Challenges of coordinating Social Security coverage.
     
  • Mechanisms to detect and discourage spiking and unusual salary increases.
     

4:45 – 5:00 p.m.

Wrap-up

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
September 21, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, September 23, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

The Commission will hear from Ann Boynton, the deputy executive officer of benefits administration for the California Public Employees’ Retirement System. The Commission also will hear from John Bartel, the president of the actuarial consulting firm Bartel Associates; Chuck Reed, the mayor of San Jose; and Jon Hamm, the chief executive officer of the California Association of Highway Patrolmen.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

On Wednesday, September 22, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to gather general information about the California State Teachers’ Retirement System. The meeting will begin at 3:00 p.m. in the Legislative Counsel’s Conference Room at 925 L Street, in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, September 15, 2010.

August 20
2010
Public Pensions
10:00 a.m., Fifth Floor Conference Room, Hall of Administration, 333 W. Santa Ana Blvd., Santa Ana, CA
Subcommittee Meeting
Agenda

AGENDA

Subcommittee Meeting on Public Pensions 
Friday, August 20, 2010, 10:00 a.m. -12:00 p.m. 
Hall of Administration, Fifth Floor Conference Room
333 W. Santa Ana Blvd., Santa Ana, CA 


Meeting Goal: Bring together Orange County stakeholders to discuss recent changes to the county’s employee pension plan and how the parties came to agreement.

10:00 – 10:15 a.m.

Welcome and Opening Remarks
Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

Introductions – All

Commission Study Process
Stuart Drown, Executive Director, Little Hoover Commission

10:15 – 10:30 a.m.

Background briefing: Finding common ground on a hybrid plan – Supervisor Bill Campbell

10:30 a.m. - 12:00 p.m. 

Discussion:

  • What factors in Orange County created an opening to change the pension system?
     
  • How were the policy goals for the new system shaped? How have the goals changed from the previous approach?
     
  • How will the county know if the new model is a success?
     
  • Should the “hybrid” model be replicated in other pension systems? Could it?
Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
August 4, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Friday, August 20, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the recent changes to Orange County’s employee pension system and its new hybrid defined benefit/defined contribution plan. The meeting will begin at 10 a.m. in the Fifth Floor Conference Room of the Hall of Administration, 333 W. Santa Ana Blvd., in Santa Ana, California.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Friday, August 13, 2010.

June 24
2010
Public Pensions
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Public Pension Plans
Thursday, June 24, 2010, at 9:00 a.m. 
State Capitol, Room 437 
Sacramento, CA


Opening Remarks

Shifting risks and responsibilities: A historical perspective of retirement systems

  1. Teresa Ghilarducci, Author and Professor of Economic Policy Analysis, The New School (Written Testimony)
     

Finding common ground to move forward

  1. Marcia Fritz, President, California Foundation for Fiscal Responsibility (Written Testimony)
     
  2. Dave Low, Director, Governmental Relations, California School Employees Association (Written Testimony, Attachment)
     

Leading the way or racing to the bottom: State retirement system reforms

  1. Keith Brainard, Research Director, National Association of State Retirement Administrators (Written Testimony)


Public Comments

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
June 10, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, June 24, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

The Commission will hear from Teresa Ghilarducci, author and professor of economic policy analysis at The New School for Social Research in New York City. The Commission also will hear from Marcia Fritz, president of the California Foundation for Fiscal Responsibility, and David Low, director of Governmental Relations for the California School Employees Association. Finally, the Commission will hear from Keith Brainard, research director for the National Association of State Retirement Administrators.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

On Wednesday, June 23, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the legal landscape for pension reform. The meeting will begin at 2 p.m. in Room 340 of the Library and Courts Building II, 900 N Street, in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, June 17, 2010.

June 23
2010
Public Pensions
2:00 p.m., Library and Courts Building II, Room 340, 900 N Street, Sacramento, CA
Subcommittee Meeting
Agenda

AGENDA

Subcommittee Meeting on Public Pensions
Wednesday, June 23, 2010, 2:00 - 4:00 p.m.
Library and Courts II, Room 340
900 N Street, Sacramento, CA


Meeting Goals:

  • Bring together legal experts on California pension law.
     
  • Discuss legal options and limits to modifying retirement allowances and benefits.
     
  • Identify legal distinctions of “1937 Act” county pension systems.
     
  • Clarify role of state Legislature to address pension costs at state and local level.
     

2:00 – 2:15 p.m.           

Welcome and Opening Remarks 
Marilyn Brewer, Subcommittee Chair, Little Hoover Commission

Introductions – All

Commission Study Process 
Stuart Drown, Executive Director, Little Hoover Commission

2:15 – 2:30 p.m.         

“Public Pension Plan Reform: The Legal Framework,” by Amy B. Monahan, associate professor; University of Minnesota Law School.

2:30 – 2:40 p.m.          

“Identifying Solutions in Difficult Economic Times,” by Jeffrey C. Chang; Chang, Ruthenberg & Long.
Additional correspondence from Jeffrey Chang and Ken Ruthenberg

2:40 – 4:00 p.m.      

Discussion
 

Comments Submitted by Members of the Public

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
June 10, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, June 24, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for the future.

The Commission will hear from Teresa Ghilarducci, author and professor of economic policy analysis at The New School for Social Research in New York City. The Commission also will hear from Marcia Fritz, president of the California Foundation for Fiscal Responsibility, and David Low, director of Governmental Relations for the California School Employees Association. Finally, the Commission will hear from Keith Brainard, research director for the National Association of State Retirement Administrators.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

On Wednesday, June 23, 2010, the Public Pensions Subcommittee of the Commission has scheduled a meeting to learn about the legal landscape for pension reform. The meeting will begin at 2 p.m. in Room 340 of the Library and Courts Building II, 900 N Street, in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, June 17, 2010.

April 22
2010
Public Pensions
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Public Pension Plans
Thursday, April 22, 2010, at 9:00 a.m.
State Capitol, Room 437 
Sacramento, CA


Opening Remarks

Defining the Problem

  1. Girard Miller, Retirement Plan Consultant and Commentator  (Written Testimony)
     
  • Attachment 1: BEST PRACTICE: Governance of Public Employee Post-Retirement Benefits Systems (2010) (CORBA) (new)
     
  • Attachment 2: "New Normal" Retirement Plan Designs


Understanding the Employer's Perspective

  1. Anthony Oliveira, Member, CalPERS Board of Administration; President, California State Association of Countiesment (Written Testimony)
    ​​​​​​​

Employee Efforts at the Bargaining Table

  1. Ron Cottingham, President, Peace Officers Research Association of California (Written Testimony)
    ​​​​​​​

Guiding Principles for Sustainability

  1. Richard Stensrud, Chief Executive Officer, Sacramento County Employees’ Retirement System (Written Testimony)
    ​​​​​​​

Additional material from hearing:

  • University of Minnesota Law School (Report)
    ​​​​​​​

Comments Submitted by Members of the Public

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
April 12, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, April 22, 2010, the Little Hoover Commission will conduct a public hearing on California public pension systems. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission will examine public pension plans in California. Public employee retiree costs are one of the biggest drivers of state and local government costs, and have been on the rise. The Commission will study the long-term implications of current structures and trends within today’s pension programs and, if warranted, recommend changes for a healthier system in the future. At this hearing, the Commission seeks to understand key issues surrounding public employee pension plans in California.

The Commission will hear from Girard Miller, a retirement plan consultant and commentator, on problems and solutions within the pension systems. The Commission also will hear from Tony Oliveira, president of the California State Association of Counties and a member of the CalPERS Board of Administration. Following him, Ron Cottingham, president of the Peace Officers Research Association of California, also will speak to the Commission. Richard Stensrud, the chief executive officer of the Sacramento County Employees’ Retirement System, will speak. Finally, David Crane, special advisor to the governor for jobs and economic growth, will speak.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in State Capitol room 125.

On Wednesday, April 21, 2010, the Commission staff will conduct a briefing for Commissioners on the agenda for the following day’s hearing. The meeting will begin at 3 p.m. in the Legislative Counsel Conference Room in the lower level of 925 L Street in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, April 15, 2010.

April 21
2010
Cancelled - Public Pensions
3:00 p.m., 925 L Street, Sacramento, CA
Subcommittee Meeting
Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
April 15, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

The Little Hoover Commission has added a teleconference location for its previously noticed public hearing on Thursday, April 22, 2010. The hearing will be in Room 437 of the State Capitol in Sacramento. The teleconference location, which also will be accessible by the public, will be: 21 C Museum Hotel, 700 West Main Street, Louisville, Kentucky.

Further, the Commission has canceled the staff briefing it had scheduled for 3 p.m. Wednesday, April 21, in the Legislative Counsel Conference Room, Lower Level, 925 L Street, in Sacramento. This cancellation applies only to the Wednesday briefing on the agenda; the Thursday, April 22, hearing will continue as planned.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov.