CalPERS Wants Law That Would Force Cities to Notify At-Risk Pensioners
The California Public Retirees System is expected to push for a new law that would require public agencies to notify employees immediately if they decide to exit the pension fund. CalPERS believes the legislation is needed to prevent another situation like that of Loyalton or the East San Gabriel Valley Human Services Consortium, in which hundreds of retirees lost their pensions after their former employers stopped paying the bills but weren’t notified for months.
Essentially, CalPERS is sick of shouldering the blame.
“Here are prime examples of local elected officials setting up organizations that aren’t paying what they’re obligated to pay CalPERS,” board member Richard Costigan said in February.
In the Consortium’s case, retirees weren’t notified that the agency had quit paying its bill for over a year and a half. Under the legislation CalPERS wants to sponsor, agencies would have to notify workers and retirees of their intent to separate from the pension fund within seven days.
Read more at the Sacramento Bee.