News Now

The troubled Central States pension fund serves 270,000 union drivers and retirees. A plan to curtail benefits and reorganize the fund, which is on track to go bankrupt in 10 years, was rejected by the Treasury Dept. recently. This is a temporary reprieve as the fund is paying out $3.46 in benefits for every dollar contributed. If the fund fails, the cuts will be much more drastic and because the plan is so big it would wipe out the federal insurance for this type of plan. Read more: http://www.nytimes.com/2016/05/07/business/dealbook/treasury-department-rejects-plan-to-cut-pension-benefits-for-teamsters.html?_r=0

Even though San Bernardino City likely had the legal option to reduce pensions during its period of bankruptcy, they opted instead to negotiate and remain with CalPERS. The city concluded that pensions are too important to cut because they make the city competitive in the job market, particularly for police. Read more: https://calpensions.com/2016/05/02/why-bankrupt-san-bernardino-didnt-cut-pensions/

Even though this “Governing” article cites a study by the ultra conservative American Enterprise Institute claiming that “full-career” workers in five states (including California) make more in retirement earnings than their final salary, it also points out that many public pension plans are well funded, well managed and deliver modest secure benefits. It concludes with a suggestion that a goal should be to apply some of the best practices of these well-managed public plans to assist private sector workers who generally have little or no retirement savings. Read more: http://www.governing.com/topics/finance/gov-pension-envy-lessons-from-well-managed-plans.html

“Critics say San Diego can’t compete with neighboring agencies like the county or city of Chula Vista since the passage of Prop. B, which ended pensions for new city employees. The candidates in the race for City Council’s District 9 believe restoring pensions would solve some of the city’s hiring problems.” Read more: http://www.voiceofsandiego.org/all-narratives/city-council/san-diegos-d9-city-council-candidates-all-of-them-want-to-bring-back-city-pensions/