July 20, 2010
CONTACT: Lani Lutar
619-234-6423 or 619-838-9065 cell or firstname.lastname@example.org
Gayle Lynn Falkenthal, APR
619-997-2495 or email@example.com
SDCTA Announces Support for Governor's Efforts on Pension Reform
Association urges state legislature to support Governor’s proposal to rein in pension costs
(San Diego) – The San Diego County Taxpayers Association (SDCTA) announced its support for Governor Arnold Schwarzenegger’s efforts on comprehensive statewide pension reform.
“For many years we have advocated for pension reform on the state level, because we share the concern that pension costs are unsustainable,” said Lani Lutar, President & CEO of SDCTA. “We are pleased to support the Governor’s leadership to rein in spiraling pension costs and thereby improve the financial health of our state.”
Pension costs have a significant impact on the local level in San Diego County. With annual pension expenditures hovering near $140 million (and growing) for San Diego’s 17 cities enrolled in the California Public Employees’ Retirement System, it is apparent that the cost to provide public pensions is placing a significant burden on local government.
SDCTA supports Governor Schwarzenegger’s proposal to:
- Create a second, lower tier of pension benefits for new hires.
- Create a permanent additional five percent (5%) increase in state employee contributions.
- Calculate the state retirement benefit based on the highest average three years of wages during employment, instead of the highest single year.
- Require CalPERS to submit a report to the legislature describing how contributions would change if a lower investment return was assumed and the impact on future state budgets if CalPERS fails to achieve its assumed investment return.
“Until the state legislature addresses the bigger picture, ongoing pension obligations will continue to undermine the ability of the cities within the CalPERS pension system to deliver basic services to their residents.”
The San Diego County Taxpayers Association will continue to support the Governor’s position on pension reform. It also calls on the State Legislature to develop structural changes that will keep the state’s public pension system solvent without asking taxpayers to contribute more money each year.
The San Diego County Taxpayers Association is a non-profit, non-partisan organization, dedicated to promoting accountable, cost-effective and efficient government and opposing unnecessary new taxes and fees. Founded in 1945, SDCTA has spent the past 65 years saving the region’s taxpayers millions of dollars, as well as generating information to help educate the public.