Posted by: coastcontact | September 21, 2012

Los Angeles Pension Reform Proposal

Here is a proposal I can enthusiastically support for the city of Los Angeles.  The proposal was sent out from Councilman Mitchell Englander’s office.

The Pension Reform Package comes before the City Council next week. To see the LA Times story, click here.

The Basics of the Pension Reform Proposal

1. Moving the retirement ages up from 55 to 65 years to reflect trends that people are living longer and able to work longer.
2. Capping the maximum retirement allowance at 75% of an employee’s final compensation instead of up to 100%.
3. Eliminating pension spiking by setting an employee’s pension on a 3-year salary average rather than one year.

4. Modifying disability retirement benefits to avoid spikes in the number of disability retirements.

5. Eliminating the current 50% survivor continuance benefit and providing employees with an option to purchase a continuance for their surviving spouse or domestic partner.

6. Capping future retiree annual cost-of-living adjustments to 2% with the option for the employee to purchase up to 3%.

7. Controlling retiree healthcare costs by limiting the benefit to retirees only, not their dependents.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: