Monday, January 11, 2010

Governator's Opening Salvo

Here's the Governator's letter to state employees, dated January 8. What this looks like to me is a way to kick indecisive retirees off the fence. Certain state agencies I'm familiar with skew heavily toward an older demographic, and since pension payments are often based on salary averages over past years, this could cause some people to retire sooner. Whatever happens, this is sure to be a contentious year in California government.


Gov Letter

5 comments :

Rachel said...

Wow...

Max said...

There's also some confusion by what he means by "Five percent increase in your monthly employee contribution for your CalPERS pension benefit." Some are taking it as an additional 5% of gross salary going toward PERS, while others think it means a 5% increase over what they're paying now. (Some union members contribute very little toward their pension, so 5% of "very little" is still pretty small.)

Also, using the term "benefit" to describe what some consider to be a hard-earned pension is not exactly what you would call a compromising tone. This will be quite a battle.

Buying Time said...

To be fair.....in the private sector, any meager form of retirement assistance is considered a benefit (i.e. proiding a 401k that employees can put their own money into).

I suppose if the State can't/won't pay it's bills this does seem like a logical place to start. At the same time, thingscan't be that bad if he is proposing a 10K tax credit for buying a home.

Max said...

Sorry, that came off a little one-sided. I only meant to point out that the disagreements extend down to the level of the adjective used to describe the pensions!

patient renter said...

Anecdotally, I'm aware of a few soon-to-be public retirees that, believe it or not, have been waiting to retire until a nice golden parachute comes along. I'm sure there's room to get some of them off of the payrolls.