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Pension Reform in California

 LIBRARY
Institute of Governmental Studies
University of California
109 Moses Hall #2370 
Berkeley, CA 94720-2370 
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Introduction

In January 2005, Governor Arnold Schwarzenegger released his official plan to curb California spending. A key feature of his plan is a proposal to amend the state constitution to radically change the California Public Employees' Retirement System (CalPERS). His plan would require new state employees hired after 2007 to use a new 401(k) style system rather than rely on the current system which pays out set benefits. Employees who are already vested in the current system would be given a choice to invest under the new 401(k) plan or remain in the current system but pay additional rates. His plan would also change the California State Teachers Retirement System (CalSTRS) into a 401(k) style system. He demanded that the California Legislature endorse a new pension plan, along with proposals on education reform and redistricting, or he would push for an intiative on the ballot of a specially called election.

The proposal has generated controversy with proponents of the plan claiming that it will save the state money and give state employees more choice in their own financial affairs. Critics say that the current system is vital to state employees and Schwarzenegger's plan will unfairly penalize employees who choose to stay in the plan.

Defined Benefit Plans

Both CalPERS and CalSTRS cover their employees with defined benefit plans. Defined benefit plans are employer-sponsored retirement plans which provide a steady, annual pension based upon age at at retirement, years of service and period of highest salary. These plans are known as defined benefit plans because they promise you a specified monthly benefit at retirement. They are generally thought of as secure plans because they offer a guarantee of retirement benefits payable at normal retirement age.

Defined benefit plans have three sources of funding: Returns on investments made by the the retirement board who manages the plans, contributions by employees and contributions by employers. Investment returns generally make the largest portion of funding. The people managing the fund (in this case the CalPERS and CalSTRS board of directors) must make investments solely in the interest of the people participating in and receiving benefits from the plan, and not to further their own interests. Employees contributions are based on a plan formula that considers factors such as salary and years employed. Employers of state employees and teachers (state agencies and school boards) contribute different percentages based on the employees salary and the state's economic health.

Most private defined benefit plans are protected by federal insurance provided through the Pension Benefit Guaranty Corporation (PBGC). However, CalPERs and CalSTRS are privately insured. A defined contribution plan requires an individual account for each participant in the plan. The CalPERS and CalSTRS plans allow members to purchase additional service credits for different activities that might affect their pensions: redeposit of withdrawn funds, military service, Job Corps or Peace Corps service, maternity and paternity leave, sabbatical leave, workers compensation, and lay-offs.

to topCalPERS

California state employees pensions are managed by the California Public Employees Retirement System (CalPERS ). It is currently the nation's largest public fund with over $180 billion in assets. All employees of participating public employers who work on a half-time basis or more and have worked over two years are eligible and required to participate in the system. Employees in their first two years of employment are covered by the CalPERS Alternative Retirement Program and would not be affected by the Schwarzenegger proposals. The benefits provided are defined by statute and the benefit structure for public agencies are established by contract with the system in accordance with the Public Employees' Retirement Law. The California Constitution gives complete authority to the CalPERS Board of Administration over the system. The board controls the administration and investment of funds and is responsible for setting employer contribution rates. It also changes the rate of interest, determines where assets are allocated and sets the rules for membership. Currently, CalPERS provides retirement and health benefits to over 1.4 state employees, retirees, and their families.

In 1929, the state Committee on Pensions of State Employees recommended the establishment of a state employees' retirement system. In 1931 the state legislature enacted Chapter 700, Statutes of 1931 which established the State Employees Retirement System (SERS). It became operational in 1932. It was structured to provide stable benefits for employees at the time of retirement. In 1939 public agency and non-teacher employees were allowed to join. In 1962, the Public Employees' Medical and Hospital Care Act expanded SERS to provide health insurance for employees. In 1967 the Act was amended to permit public agencies which participated in the SERS retirement system to elect participation in the health benefits program. The program was changed to CalPERS to reflect the participation of public agencies in the system.

CalPERS investments lie in diversified sectors as a protection against instability in the economy. Investments are structured so that any losses in one area will be offset by gains in another. The majority of CalPERS assets are invested in domestic stocks, bonds and real estate. CalPERS invested $172 billion for employees last year. State workers now pay a fixed 7% rate to cover the system costs. In addition, CalPERS tells state and local government employers how much they must contribute each to keep the system fiscally stable. These funds come from the departmental budgets funded by taxpayers. Because of unstable economic trends, the contribution from members can fluctuate sharply.

The CalPERS retirement allowance is based on service years in CalPERS, retirement age and final compensation at retirement. CalPERS final compensation is based on highest monthly pay rate for the last consecutive 12 months of employment. The average pension for workers covered by CalPERS is 2 percent of pay times years of service for those who retire at age 55 and 2.5% for those who retire at age 63. When compared to the private sector, state employees receive more for their retirements than private sector employees. However, state employees are traditionally paid less than those in the private sector.

The stock market crashes of the dot com era caused a large dip in pension fund assets. That forced government employers to make larger contributions to keep the system going. Opponents of the CalPERS system say that these contributions cost the state millions during a fiscal crisis. They claim that system is outdated, putting too much burden on the taxpayer to fund the system. They also say that with rising costs and the current budget deficit, the only way to provide pensions is to put a cap on taxpayer liability and offer 401(k) plans in lieu of the current system. CalPERS proponents point to the fact that the system provides a fully guaranteed retirement benefit and generates a large tax deduction for its members.

to topCalSTRS

California teachers pensions are managed by the California State Teachers Retirement System. The system is the largest teachers' retirement fund in the United States with a membership of approximately 754,000 and assets of $116.2 billion. CalSTRS investments lie primarily with domestic and foreign equities and bonds. Like CalPERS, the CalSTRS Retirement Board has exclusive control over the investment and administration of the retirement fund. CalSTRS was established in 1913 and is mandated under the Teachers' Retirement Law to provide retirement benefits to California's public school teachers. CalTRS, like CalPERS, offers a defined benefit program to all employees of the California public school system, kindergarten through community college.

All employees have a Defined Benefit Supplement Account where pension funds are deposited. Funds are provided by employees, employers and the state. Monthly contributions by employee are roughly 8% of his/her gross salary. Employers (school districts, county superintendents of schools or community college districts) contribute an amount equal to 8.25% of the compensation paid to every employee who is a member of CalSTRS. Employer contributions are deposited in the CalTRS Teachers' Retirement Fund rather than be credited to individual members. The state of California contributes 2.017% of earnings from the fiscal year ending in the prior calendar year. The state also contributes an amount equal to 2.5% of the total compensation paid to all CalSTRS Defined Benefit Program members.

Employees are vested with a right to a lifetime retirement benefit when they have accumulated five years of service credit under the CalSTRS Defined Benefit Program. The benefit becomes available to employees as early as age 55 or age 50, with at least 30 years of service. CalSTRS final compensation is based on the highest average annual compensation earnable for 12 consecutive months if the member has 25 years or more, if less than 25 years or 36 consecutive months total service. Districts have the option to base final compensation for their members on the highest 12 consecutive months.

For a detailed explanation of CalPERS and CalSTRS pension programs, see "Join CalSTRS? Join CalPERS?", Jan. 2004


Background Reading
 
Fact Sheet: Investments : California Public Employees' Retirement System, 2004.

Join CalSTRS? Join CalPERS?. Sacramento, California Teachers' Retirement System in cooperation with the California Public Employees' Retirement System. 2004.
 
Understanding CalPERS: A Guidebook to the California Public Employees' Retirement System. Sacramento: California Public Employees' Retirement System, 1995.

"The CalPERS Experience and Managed Competition," SEIU Issue Paper, March 1993.

to topDefined Contribution Plans

In the January 2005 State of the State speech, Gov. Schwarzenegger announced his plan to change the state employee pension system. Schwarzenegger is asking lawmakers to place a constitutional amendment on the ballot that would overhaul the state pension system and switch from the current CalPERS and CalSTRS defined benefit plans to defined contribution plans. Defined contribution plans are similar to 401(k) plans in that they give participants a certain flexibility in how much they choose to save. They do not promise a specific amount of benefits at retirement. Rather, the benefits are based on employees contributions in amounts they choose. The employee contributes a certain percentage of his or her annual salary to a private account. The employer pays a specified amount of money each year which is then divided among the individual accounts of each participating employee. Plan contributions are determined by formula, and plan earnings and losses are allocated to each participant's individual account. Earnings and losses do not affect the employer's retirement plan costs. In addition, plan benefits are not insured. Schwarzenegger's proposal would increase a worker's contribution to 11% of pay compared with the flat 5% rate under the current system. That rate would vary from year to year depending on the retirement system's investment returns and other factors. There are restrictions as to when and how employees can withdraw their defined contribution funds without penalties.

The major differences between defined benefit plans and defined contribution plans are that employees bear the investment risk under defined contribution plans. However, under defined contribution plans, they also have more control over their plans and have the opportunity to add more money to their final retirement. Critics of defined contribution plans point to the lack of security that these plans maintain for the average employee as well as the success of defined benefit plans in the public sector. Proponents support the entrepreneurial nature of these plans, claiming that they give individuals more power in their own financial future without saddling the state with additional costs.

to topSchwarzenegger Proposals

After Gov. Schwarzenegger announced his plan to change the state employee pension system, Assemblyman Keith Richman (R-Granada Hills), working with the Howard Jarvis Taxpayers Association, released Assembly Constitutional Amendment 5 (ACA 5) which mandates that all new government employees hired after 2007 be eligible for only 401(k) plans. Schwarzenegger backs this amendment which would give current workers the right to shift their pension benefits into 401(k) accounts although they would not be obligated to do so. If Richman's bill is passed by both houses of the Legislature, it would go before the voters, who could make it part of the state Constitution by a majority vote. Those provisions could be changed only if the Legislature votes to do so by a three-quarters margin once before and once after a general election.

On March 1st, the governor came out and officially endorsed an initiative version of ACA 5 called The Fair and Fiscally Responsible Public Employee Retirement Act. The Fair and Fiscally Responsible Public Employee Retirement Act was submitted to the Attorney General's Office by Jon Coupal of the Howard Jarvis Taxpayers Association on Jan. 6 and is now at the stage where it must receive the signatures of 598,105 registered voters to qualify for the ballot. March 1st marks the deadline Schwarzenegger gave the legislature to address the concerns he made in his state of the state speech. The governor has not officially called for the special election he promised in January (he has until Mid-June to do so) and some analysts believe his public endorsement is meant to send a message to lawmakers that they must address the pension reform issue.

See "2005-06 Budget Perspectives and Issues" (Legislative Analysts Office, Feb. 22, 2005, pp. 127-148) for an analysis of public pension benefits and cost concerns.

Schwarzenegger Reforms: Effects on CalPERS

Pension reform ignited immediate controversy. On Feb. 15, a CalPERS committee voted 5-1 to oppose the Schwarzenegger proposal. The five committee members said that shifting to 401(k) accounts would threaten the future of future retirees. They also claimed that private retirement plans could cost the state as much as $1 billion during the first 10 years of implementation. Public employee unions and other critics of the plan say that the current CalPERS system is more cost effective and changes to the system would risk economic health of employees who are not as knowledgeable about investing as the CalPERS officials who run the pension fund. They argue that 401(k) style plans cost the state more in administration costs. They also point to the fact that booms in the stock market during the 90's allowed state agencies to avoid any payments to the fund in those peak years.

Proponents of a 401(k) style system claim that it is fiscally irresponsible to continue funding the current system in light of the budget deficit and the rise in payments that state agencies must make to their pension funds in recent years. They say that it will give government workers the same choices that workers in the private sector enjoy: the ability to change jobs without giving up retirement benefits and having more of a choice in their financial future.

There may be limitations to what the Governor and his supporters can do to the pension system for current employees. California courts have consistently struck down attempts to change the pension laws where they found that the new proposals left employees at a financial disadvantage without providing "comparable new advantages".


Schwarzenegger Reforms: Effects onCalSTRS

ACA 5 would also affect the California State Teachers Retirement System. Under the proposal, the existing general fund contribution to the CalSTRS Defined Benefit Program would be eliminated. The state currently contributes $469 million to cover teacher pension costs. Under the proposal, school districts and teachers would take over this cost. If the proposal went into effect, individual school districts would have to negotiate with teachers to pay the additional amount. This would amount to a 2 percent increase in the amount districts now pay to keep the pension going. The total costs to the school districts throughout the state would be approximately $500 million annually. Schwarzenegger also proposes letting teachers take home more pay by opting out of a supplemental benefit program. The program ends in five years, however, and the savings would end at that time.

Schwarzenegger's proposal would also prohibit teachers from enrolling in defined benefit plans after June 30, 2007. Instead, they would enroll in defined contribution plans with the same benefits and costs the CalPERS employees would experience (see Defined Contribution Plans and Effects to CalPERS sections above for a description of defined contribution plans and their impact).

The board of CalSTRS voted against Schwarzenegger's plan to privatize the state's public pension system on Feb. 3rd. Gov. Schwarzenegger fired 4 of his appointees to the board several days later. Board members said that the proposal had implications for the financial stability of the system and that the state should continue to fund the program (see "Teacher Retirement Board Votes to oppose budget proposals to eliminate state contributions to CalSTRS", CalSTRS press release, Feb. 3, 2005). Members of CalSTRS and other education activists have also complained about Schwarzenegger's plan, saying that it would cost CalSTRS hundreds of thousands of dollars in administration costs. Proponents of the plan say that the CalSTRS plan is unsustainable in its current situation and the state can no longer afford its contribution to the fund.

For addtional information on proposed changes to CalSTRS, see pg. F-27, Legislative Analysts' Office "2005-06 Analysis" of California General Government.

to topSchwarzenegger Reversal

After Gov. Schwarzenegger endorsed The Fair and Fiscally Responsible Public Employee Retirement Act in early March, a sizable coalition formed to fight the proposal. Police, firefighters and other law enforcement groups publicly protested the initiative, claiming that the proposal would strip death and disability benefits if it passed. The controversy arose after the release of an analysis by Attorney General Bill Lockyer which said switching public employees to a 401(k)-style plan would eliminate existing benefits. The governor's team disputed the interpretation, but law enforcement groups claimed they did not trust the proposal. Many health care employees, teachers and public workers also pushed hard for the governor to drop the initiative. On Apr. 7, after several days of meetings with police widows and law enforcement officials, Gov. Schwarzenegger retreated from his plan, claiming he was abandoning pursuing the idea until June 2006.

Some analysts believe the governor withdrew his plan because his poll numbers went down significantly during March, possibly due to the outcry from opposition groups. Supporters of the Governor's bill say that the pension debate is only delayed, saying that Schwarzenegger's office intends to rewrite the language of the proposal, resubmit it and put it on the June 2006 ballot. The Governor has also said he wants Democratic legislators, local government officials, and public-employee unions to enter into negotiations on developing a new pension plan. Critics of Schwarzenegger's pension reform say that there may be room for a compromise on the issue.

to topInitiatives and Bills

Efforts to enact pension reform are currently underway through both legislative and ballot measure channels, including the following:

Initiatives

For updates to this list, go to Active Initiatives provided by the Office of the Attorney General.

Bills

Key Websites

Assemblyman Keith Richman

California Governor's Office

California Public Employees Retirement System (CalPERS )

California Teachers Retirement System (CalSTRS)

Defined Benefit vs. Defined Contribution Pension Plans website
Web-site by American Federation of State, County and Municipal Employees, AFL-CIO.

Howard Jarvis Taxpayers Association

The Pension and Welfare Benefits Administration
A division of the U.S. Department of Labor (DOL). It provides basic information about pension plan options in the U.S.


 to topPublic Opinion

"Schwarzenegger Approval Ratings Drop Sharply," Survey and Policy Research Center, San Jose State University, Apr. 7, 2005.

"Special survey on the California State Budget," PPIC Statewide Survey, January 2005.
See pg. 11 for polling on Pension Reform.

to top Selected Newspaper Articles and Reports

The following citations include links to full-text online when available. For more info, see Tips for Finding Full-Text Articles.


Hill, John.
"Pensions: Tweaks or overhaul? As costs soar, lawmakers are split on whether proposals go far enough to repair system," Sacramento Bee, July 17, 2005.
NewsBank (UCB)

Mendel, Ed.
"Governor still making pitch to overhaul pension plans," San Diego Union-Tribune, June 10, 2005.
NewsBank (UCB)

Walters, Dan.
"Schwarzenegger drops pension reform, but the crisis continues," Sacramento Bee, May 16, 2005.
NewsBank (UCB)

Drucker, David M.
"Unions quit pension talks: Groups pushing for end to all of governor's reform agenda," Los Angeles Daily News, May 5, 2005.
NewsBank (UCB)

Barabak, Mark Z. and Salladay, Robert.
"They've All Stepped on Schwarzenegger's Lines: Nurses, firefighters -- even widows -- have put him on the defensive and his agenda in disarray," Los Angeles Times, Apr. 25, 2005.
NewsBank (UCB)

Stewart, Jill [Opinion]
"Governor should have held his ground on pension reform: when going after the big offenders, don't forget the smaller ones," Long Beach Press Telegram, Apr. 17, 2005.
NewsBank (UCB)

Gledhill, Lynda.
"Governor defends about-face: Foes gleeful that he dropped measure on public pensions," San Francisco Chronicle, Apr. 9, 2005.
San Francisco Chronicle

Delsohn, Gary.
"Governor's critics revel in one more concession," Sacramento Bee, Apr. 8, 2005.
NewsBank (UCB)

[Opinion]
"Pension forfeit," Press-Enterprise, Apr. 8, 2005.
NewsBank (UCB)

Nicholas, Peter.
"Governor Drops Pension Revamp: Schwarzenegger admits his ballot plan is flawed but vows to readdress the issue next year, foes say he's backing off his call for sweeping change," Los Angeles Times, Apr. 8, 2005.
NewsBank (UCB)

Gledhill, Lynda.
"Governor gives up on overhaul of public pensions: Police, firefighters had applied pressure," San Francisco Chronicle, Apr. 8, 2005.
San Francisco Chronicle

"Benefits Plan Puts Gov. on Defense: Public workers criticize Schwarzenegger's state pension overhaul, which would affect death and disability payments," Los Angeles Times, Apr. 1, 2005.
NewsBank (UCB)

Martin, Mark.
"Voices rise against governor's pension rejiggering: State's public safety officers, widows rap overhaul proposal," San Francisco Chronicle, Mar. 25, 2005.
San Francisco Chronicle

Weintraub, Daniel.
"A billion in debt and big payments define 'success'," Sacramento Bee, Mar. 24, 2005.
NewsBank (UCB)

Furillo, Andy.
"Chiefs join ranks of pension fight: Police and fire brass align with unions to battle the governor's proposed changes," Sacramento Bee, Mar. 24, 2005.
NewsBank (UCB)

Veseley, Rebecca.
"Nurses union to be on guard despite recent court victory," Inside Bay Area, Mar. 21, 2005.
Inside Bay Area

Sheppard, Harrison.
"Two measures vie with governor's plans," Los Angeles Daily News, Mar. 20, 2005.
NewsBank (UCB)

Yost, Phil.
"On pension reform, Demos key to compromise," San Jose Mercury News, Mar. 6, 2005.
NewsBank (UCB)

Salladay, Robert.
"Lockyer's Statement Under Fire: Governor's office denies attorney general's contention that pension overhaul would end death benefit for police and firefighters," Los Angeles Times, Mar. 8, 2005.
NewsBank (UCB)

 Furillo, Andy.
"Pension ballot language disputed: Summary says measure will cut death benefits; governor says it won't," Sacramento Bee, Mar. 4, 2005.
NewsBank (UCB)

 Halper, Evan.
"Gov. Softens Pension Stance: His finance director says Schwarzenegger is willing to bend on a proposal to shift state workers to private retirement accounts," Los Angeles Times, Mar. 3, 2005.
NewsBank (UCB)

LaMar, Andrew.
"Top bush ally rejects governor's pension overhaul: Regents chairman calls for alternative, says 401(k) would hurt UC's recruitment," San Jose Mercury News, Mar. 3, 2005.
NewsBank (UCB)

Hill, John.
"'No' to pension plan: The governor's idea would hurt hiring, the head of UC regents tells a testy Capitol hearing," Sacramento Bee, Mar. 3, 2005.
NewsBank (UCB)

Osterman, Rachel.
"Angelides recruits labor advocates for pension fight," Sacramento Bee, Mar. 3, 2005.
NewsBank (UCB)

Martin, Mark; Hoge, Patrick; Gledhill, Lynda.
"Pension reform plan draws heated oppostion: Governor touts agenda while public safety groups protest," San Francisco Chronicle, Mar. 3, 2005.
San Francisco Chronicle

Sheppard, Harrison.
"Widows, unions attack pension plan," Whittier Daily News, Mar. 3, 2005.
NewsBank (UCB)

Campbell, Tom [Opinion].
"State nees to convert to a predictable pension system," Sacramento Bee, Mar. 2, 2005.
NewsBank (UCB)

Nicholas, Peter and Salladay, Robert.
"Entree Comes With Familiar Side of Governor: Schwarzenegger takes his battle with the Legislature to a restaurant, where he dishes up heaping helpings of partisanship," Los Angeles Times, Mar. 2, 2005.
NewsBank (UCB)

Martin, Mark.
"Governor takes key step toward special election: Frustrated with lawmakers, he opens signature drive for initiatives," San Francisco Chronicle, Mar. 2, 2005.
San Francisco Chronicle

Martin, Mark.
"Political group sets stage for special election: Schwarzenegger supporters to raise funds for 2 initiatives," San Francisco Chronicle, Mar. 1, 2005.
San Francisco Chronicle

Furillo, Andy.
"Ballot plans get a boost: A business group backs pension shift, teacher tenure issues," Sacramento Bee, Mar. 1, 2005.
NewsBank (UCB)

Weintraub, Daniel [Opinion].
"Pension changes would create long-term savings," Sacramento Bee, Mar. 1, 2005.
NewsBank (UCB)

Halper, Evan and Rau, Jordan.
"Governor's School Plan Is Criticized: Legislative analyst says ending payments to teacher pension fund may be illegal and urges repeal of Prop. 49, the after-school fund law," Los Angeles Times, Feb. 25, 2005.
NewsBank (UCB)

Gosselin, Peter G.
"States' Private Pensions Make a Weak Showing: The retirement accounts have had less appeal and spottier success than Bush plan's projections," Los Angeles Times, Feb. 22, 2005.
NewsBank (UCB)

Chan, Gilbert.
"CalPERS says no to pension overhaul: Governor's bid called threat to agency," Sacramento Bee, Feb. 17, 2005.
NewsBank (UCB)

Berthelsen, Christian.
"CalPERS elects president: Feckner expected to continue fund's activist policies," San Francisco Chronicle, Feb. 17, 2005.
San Francisco Chronicle

Osterman, Rachel.
"Governor dealt pension setback: CalPERS committee opposes call for shift to 401(k)-style plan," Sacramento Bee, Feb. 16, 2005.
NewsBank (UCB)

Kasler, Dale.
"For pension boards, politics are nothing new, some say," Sacramento Bee, Feb. 15, 2005.
NewsBank (UCB)

Martin, Mark and Gledhill, Lynda.
"Governor fires 4 members of teachers retirement panel: They opposed Schwarzenegger's pension proposals," San Francisco Chronicle, Feb. 11, 2005.
San Francisco Chronicle

Hill, John.
"Courts stand guard on pension promises: Any changes can't hurt current state workers, judges have ruled," Sacramento Bee, Feb. 7, 2005.
NewsBank (UCB)

Yost, Phil.
"Pension disaster is coming!...Wait, maybe not," San Jose Mercury News, Feb. 7, 2005.
NewsBank (UCB)

"Teachers board votes against pension plan," San Jose Mercury News, Feb. 3, 2005.
NewsBank (UCB)

Weintraub, Daniel.
"Lessons for California from Oregon's Debacle," Sacramento Bee, Jan. 27, 2005.
NewsBank (UCB)

Weintraub, Daniel
"California's pension benefits among the richest," Sacramento Bee, Jan. 25, 2005.
NewsBank (UCB)

Saillant, Catherine.
"State workers wary of pension idea: If fixed-benefit system is replaced, some predict, government jobs may become harder to fill," Los Angeles Times, Jan. 23, 2005.
NewsBank (UCB)

Flanigan, James.
"State Pension System Needs Overhaul," Los Angeles Times, Jan. 23, 2005.
NewsBank (UCB)

Sheppard, Harrison.
"Unions vow to fight state pension overhaul," Inside Bay Area, Jan.18, 2005.
Inside Bay Area

Delsohn, Gary.
"Factions voicing doubts on deals: Education leaders are the latest group to question whether the governor's word can be trusted," Sacramento Bee, Jan. 16, 2005.
NewsBank (UCB)

Abate, Tom.
"Public pensions on the table: As governor pushes for 401(k) system, critics prefer reform," San Francisco Chronicle, Jan. 16, 2005.
San Francisco Chronicle

Hill, John.
"Arguments honed in fight over state pensions," Sacramento Bee, Jan. 14, 2005.
NewsBank (UCB)

Sheppard, Harrison.
"Pension showdown brewing," Daily News of Los Angeles, Jan. 13, 2005.
NewsBank (UCB)

Martin, Mark.
"Governor's allies put labor on the defensive: Unions scramble to protect pensions, teachers' salaries," San Francisco Chronicle, Jan. 12, 2005.
NewsBank (UCB)

"State workers balk at taking another hit," Sacramento Bee, Jan. 11, 2005.
NewsBank (UCB)

Chan, Gilbert.
"Teacher pension shift is sought," Sacramento Bee, Jan. 11, 2005.
NewsBank (UCB)

LaMar, Andrew.
"Unions decry state pension reform: Plan's supporters say the governor's plan would rein in skyrocketing costs, while critics say it would slash retirement benefits," Contra Costa Times, Jan. 8, 2005.
NewsBank (UCB)

Spender, Kathleen.
"State's retirees prosper," San Francisco Chronicle, Jan. 7, 2005.
San Francisco Chronicle

Abate, Tom.
"Pension proposal gets support: Constitutional amendment to overhaul system introduced," San Francisco Chronicle, Jan. 7, 2005.
San Francisco Chronicle

Walters, Dan.
"Schwarzenegger declares war on the powerful public worker unions," Sacramento Bee, Jan. 7, 2005.
Sacramento Bee

"Governor calls for 'bold new era': He proposes 4 major government 'reforms'," Sacramento Bee, Jan. 6, 2005.
NewsBank (UCB)

Berthelsen, Christian.
"Big change proposed for state workers' pensions: Governor's plan for 401(k)-like system draws criticism from unions, CalPERS," San Francisco Chronicle, Jan. 6, 2005.
NewsBank (UCB)

Halper, Evan.
"Governor targets public retirement plans," Los Angeles Times, Jan. 6, 2005.
NewsBank (UCB)

Berthelsen, Christian.
"Big change proposed for state workers' pensions: Governor's plan for 401(k)-like system draws criticism from unions, CalPERS," San Francisco Chronicle, Jan. 6, 2005.
San Francisco Chronicle

"Governor Lays Out Ambitious Agenda Certain to Draw Fire: In a combative speech, Schwarzenegger seeks spending caps, a revised state worker pension plan, teacher merit pay and cuts in bureaucracy," Los Angeles Times, Jan. 6, 2005.
NewsBank (UCB)

Jelincic, J.J. [Opinion]
"Schwarzenegger's pension proposal ignores facts," California State Employees Association News Release, Jan. 5. 2005.
California State Employees Association

"How law fattens state pensions," Sacramento Bee, Dec. 19, 2004.
NewsBank (UCB)

Prepared by the staff of the IGS Library.
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