09-11-2012 CC RPT 23a - Laserfiche WebLink

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`Pensions'Continued from Page 1... The League board of directors on Thursday, Aug. 30 voted to support AB 340, expressing that: "While not perfect, the League views this legislation as a substantial step forward in implementing pension reform largely in keeping with the League's own comprehensive pension reform principles. This recommendation is made in recognition that there are numerous questions of implementation and interpretation that will need to be resolved in the days and months ahead. The League and cities will continue to be vigilant in advocating for effective pension reform to ensure the intent of this historic legislation is respected. Finally, the League board congratulates the elected and appointed city leaders of California for their pension reform actions to date, and it respectfully urges them to continue their leadership on this vital issue at the local level." If signed by Gov. Jerry Brown, and his signature is expected, the legislation would save an estimated $42—55 billion over the next 30 years according to a statement issued by CalPERS today ( . The proposal applies to all public employers and pension plans on or after Jan. 1, 2013, with the exception of the University of California as well as charter cities and charter counties that do not participate in CalPERS or the 37 Act System. AB 340 makes changes to public employee pensions including establishing a cap on the amount of salary that can be used to calculate a retirement benefit, raising the retirement age for both public safety and miscellaneous employees, implementing cost-sharing, using the average of the final three years to calculate final compensation, implementing a 180 day sit-out period for retired persons to return to work in the retirement system in which they receive a pension, defines "pension compensation," a pension forfeiture requirement for public employees convicted of committing a felony in connection with their job, the elimination of airtime, pension holidays and pension spiking. All aspects of the legislation apply to new employees after Jan. 1, 2013. Four provisions, cost sharing, the six month sit-out requirement, and the elimination of airtime and pension holidays, apply to current members in the system. The League has prepared a side-by-side analysis (http://www.cacities.org/083012PensionCo of the plan and the pension reform plan adopted by the League board of directors in July 2011. `Workers Compensation'Continued from Page 1... This year's package of reforms was negotiated between the California Labor Federation and several large self-insured employers including Grimmway Farms, Safeway and the Schools Insurance Authority. The Department of Industrial Relations was also engaged in the discussions and held numerous stakeholder meetings throughout the state. The legislation is intended to provide savings to employers that will offset a nearly 18 percent increase in the permanent disability rating schedule, which was agreed by employers with reforms passed during the Schwarzenegger Administration. SB 863 was drafted to: • Reduce frictional costs achieved through tighter claims management; • Set reasonable, achievable time frames for claims resolution; • Create an accountable lien process; • Stem the flood of unnecessary"add-ons"to nearly every workers' comp claim for sexual dysfunction and sleep disorders as a way to drive up the permanent disability award; • Provide better access to care for injured workers; and • Establish needed fee schedules, among other cost saving changes. Groups representing employers such as the California Chamber of Commerce and the California Association of Joint Powers Authorities, support the reforms because they believe that SB 863 is a balanced approach to increasing injured worker benefits with needed system changes that reduce system wide costs related to friction and litigation. 2 23a-2