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Page 3
the Pre-Funding Program with the objective of reducing their health cost obligations by virtue
of interest earnings on investments under this Program. Last year Governor Schwarzenegger
Governor’s objections.
vetoed legislation that would enable CalPERS to offer the program to any local public entity,
whether or not that entity is a CalPERS member or participates in the CalPERS health plan.
However, the legislation is likely to be introduced again this year in a form that meets the
Governor’s objections.
makers keep in mind some key facts:makers keep in mind some key facts:
of interest earnings on investments under this Program. Last year Governor Schwarzenegger
Governor’s objections.
vetoed legislation that would enable CalPERS to offer the program to any local public entity,
whether or not that entity is a CalPERS member or participates in the CalPERS health plan.
However, the legislation is likely to be introduced again this year in a form that meets the
Governor’s objections.
makers keep in mind some key facts:makers keep in mind some key facts:
• The GASB standards do not jeopardize the pension or OPEB benefits of any existing
retiree. Those benefits are vested and legally protected.
protracted slump could make them increase.
too willing to exploit.
too willing to exploit.
dedicated to their professions in public service. Additionally, governments should not be
vilified for reviewing options to keep costs in line with budgets and income as they try to
provide an economic balance for all residents in the jurisdiction.
keep costs in line with budgets and income as they try to provide an economic balance for all
residents in the jurisdiction.
No doubt, all of us entrusted with the fiscal propriety of our local jurisdictions will watch the
evolving discussion and legislation with great interest. As government and the number of
individuals devoted to public service continue to grow, this issue will be in the spotlight.
www.CityAuditorLauraDoud.com
March 2007
retiree. Those benefits are vested and legally protected.
protracted slump could make them increase.
too willing to exploit.
too willing to exploit.
dedicated to their professions in public service. Additionally, governments should not be
vilified for reviewing options to keep costs in line with budgets and income as they try to
provide an economic balance for all residents in the jurisdiction.
keep costs in line with budgets and income as they try to provide an economic balance for all
residents in the jurisdiction.
No doubt, all of us entrusted with the fiscal propriety of our local jurisdictions will watch the
evolving discussion and legislation with great interest. As government and the number of
individuals devoted to public service continue to grow, this issue will be in the spotlight.
www.CityAuditorLauraDoud.com
March 2007
| Pension and Health Care Costs for Public Retirees Crisis or Challenge? |