Both CalSTRS and CalPERS have mechanisms in place to guard a retiree’s defined benefit pension against eroding purchasing power. The first is a cost-of-living adjustment, or COLA, and the second is a “floor” below which the buying power of a pension cannot fall. Now thanks to a CFT-sponsored bill recently signed by Governor Newsom, CalSTRS retirees from earlier decades will see additional relief.
Update: On December 8, CalPERS announced that Walker won the election for the board seat. Learn more here.
The CFT has endorsed Yvonne Walker for the retiree seat on the CalPERS Board, in a run-off election starting November 5.
Election Results: On October 1, CalPERS announced that CFT-supported candidates David Miller and Jose Luis Pacheco were elected to the CalPERS Board. Read our press release.
On August 16, 2021, Governor Newsom issued Executive Order N-12-21 to provide additional flexibility to hire retired K-12 teachers, community college faculty, and classified staff during the COVID-19 State of Emergency.
The California Public Employees’ Retirement System, CalPERS, recently rattled the cages of the for-profit prison industry by divesting nearly $10 million of stock in the country’s two biggest private jailers.
The August sell-off came on the heels of the California State Teachers Retirement System, CalSTRS, dropping its $12 million investment in GEO Group and CoreCivic (formerly known as the Corrections Corporation of America).
The CFT has endorsed and strongly encourages your support for Michael Bilbrey in the runoff election for the CalPERS Board of Administration.
For years, people have been trying to attack pensions with ballot propositions, said Doug Orr, an economics professor at City College of San Francisco and the chair of the of the CFT Retirement Policy Committee. Those propositions always go down in defeat, Orr said, and now those attacks on pensions are coming to the courts.
The Legislature has begun public hearings to address a $71 billion funding gap in the pension system for K-14 teachers. Without an increase in contributions, CalSTRS predicts its assets will be depleted in about 30 years.
San Jose Mayor Chuck Reed is mounting a major attack on educators’ pensions. He has filed a voter initiative with the Secretary of State and may start collecting signatures in early 2014 to qualify it for the November ballot.
Classified employees with questions about the new Public Employees’ Pension Reform Act of 2013 may find answers on the Frequently Asked Questions page of the CalPERS website. Here are some answers to common questions.
The new law requires that new employees of public schools and community colleges contribute at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher.
A new law passed in the final hours of the legislative session makes sweeping changes to public employee pensions that impose most of the changes on workers not yet hired, creating a two-tier system in the workplace where two groups of workers doing the same work receive different retirement benefits.