2 Decisions Impact California Pensions. The background. The Decisions.

The background of California Pensions:

• Underfunded proposed state ballot pension measures
•  Local pension reforms face ruinous litigation
• Union-controlled California Public Employees’ Retirement System has fiercely opposed pension cuts in bankrupt cities & imposed large penalties on governments attempting to withdraw

• Lower the discount rate to drop funding levels & increase the taxpayer contributions

California Supreme Court is considering whether benefits can be reduced:

• The Court will consider whether accrued benefits can remain unchanged but benefits tied to future work (of existing employees too) can be changed

Sacramento Bee | Two decisions could make big changes in California’s public pension system