Governor's Press Pension Reform Document

From Dolores Sanchez, CFT Legislative Representative

August 28, 2012, 2:45 p.m.

The Governor just released a press release announcing the details of the pension reform agreement.  Please see the attachment. 

A few details:

• Unilateral Rollbacks of Retirement Ages and Formulas: Replacing 2% of final salary per year of service at age 60 formula with a lesser benefit of 2% of final salary per year at age 62.  Replacing the maximum retirement formula from 2.5% at age 63 (PERS classified) and 2.4% at age 63 (STRS members) to 2.5% at age 67. 
• Replacing one-year period for determining compensation with a three year average.
• Requirement of equal sharing of pension cost.  STRS members currently fund 45% of the total pension cost.  This could mean an increase in employee contributions.

 CFT leadership urges you to call the Governor, Assembly Speaker Perez, and Senate Pro Tem Steinberg and tell them that scapegoating hardworking public employees for the Wall Street-driven financial crisis that led to pension fund shortfalls is not acceptable.  Go back and negotiate something more fair.