Issue Position: Curbing Public Pension and Public Benefit Abuse

Issue Position

A 2014 report from the Controller's office estimated that California has at least $198.2 billion in unfunded liabilities for public-employee retirement benefits. That is in addition to the burden carried directly by many of California's cities and counties, some of which have gone through or face bankruptcy.

One of my most important priorities in the State Senate is to force the state to take accountability for this problem and take immediate steps to eliminate it:

* Independent Leadership on pension boards. I support legislation to add independent directors on the boards of CALPERS and CALSTERS, to ensure that the public interest is protected.
* Capping pensions at no more than 70% of pay, based on a three-year average and with safeguards to prevent pension spiking and other abuses.
* A hybrid system that includes 401-k style benefits for new state employees. Public employees should not expect to retire with greater benefits than those of the taxpayers who are funding them

I believe that when you work hard for a lifetime, it is important to have a retirement nest egg to carry you through your golden years. But our massive, unfunded pension liabilities are not just threatening taxpayers -- they threaten to steal retirement security from the pockets of the newly hired school teacher or public safety officer. Finally, vital public services are impacted when operating funds are redirected to pay pension debt.

Legislators receive a salary that is set by an independent salary commission. However, lawmakers set their own per diem payments for tax-free living expenses while working in the State Capitol. This is ripe for abuse.

For too long, our politicians have been using a loophole in their own regulation to be paid per diem for working on weekends and holidays even when they are not in Sacramento. This is wrong. If elected, I will refuse these per diem payments.

How can lawmakers preach an honest day's work for an honest day's pay when they abuse that standard in their own conduct? My opponents have conducted themselves in this manner and it another reason to vote a change in our legislative delegation.

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