March 1, 2011
Corona Valley Chamber, Senator
Bill Emmerson and Assembly Member Jeff Miller Discuss Taking
Action on Public Pension Reforms
The Greater Corona Valley Chamber of Commerce and its
Legislative Action Committee (LAC) met with Corona-area
State Senator Bill Emmerson and Assembly Member Jeff Miller
in January to discuss taking action on the public pension
crisis. Both legislators remain committed to reigning in the
massive public pension liabilities and the Chamber will
continue to work with them to provide action towards
supporting meaningful reforms.
One of the concerns raised at the meeting with the two
leaders was the fact that many state employees retire with
nearly 100% of their pay with benefits - for life. The
Chamber urged the state leaders to seek reforms that push
some of that liability on the public employees themselves
instead of forcing taxpayers to fund the unrealistic burden
of nearly 100% lifetime benefits.
“Health care benefits alone for public employees is around
$1.4 billion this year and is expected to be $1.6 billion
next year,” stated Cynthia Schneider, Chair of the Chamber’s
Legislative Action Committee. “However, an additional $1
billion is needed to maintain health care coverage for
retired state workers and that is expected to cost the state
over $50 billion in the next 30 years – obviously this
pressure on the state coffers impacts everyone in
California,” continued Schneider.
California’s nonpartisan Legislative Analyst’s Office (LAO)
has routinely advised state leaders that the current public
pension systems are “too expensive and inflexible.” Annual
pension contributions from state employees are mandated by
state law. However, the LAO is recommending a new “cost
sharing” plan to increase contributions from both employees
and the state. A “hybrid” public pension model is also
recommended allowing for lower benefits with a 401(k)-style
individual investment plan which is increasingly common in
the private sector.
State pension costs in 1999 were $1.4 billion or 2 percent
of the state’s general fund. Now that number stands at $6
billion or about 7 percent.
August 10, 2010
Corona Chamber
Statement On Governor's Call For Pension Reform
The Greater Corona Valley
Chamber Legislative Action Committee Chair Cynthia Schneider
released the following statement today regarding the
Governor’s call for pension reform:
“Pension Reform is a must if California wants to return to
golden state of economic prosperity. We endorse the need for
pension reform for our state during the state budget
negotiations. We praise the Governor for making strides in
negotiating with the public employee unions by helping to
bring some of the pension system under control. We believe
these renegotiated contracts are vital in order to help move
the state budget negotiations forward.”
