Sen. John Moorlach Introduces Senate Bill 1032, the Local Pension Protection Act of 2018
FOR IMMEDIATE RELEASE: February 14, 2018
Sacramento, CA – “As the second of my package of pension reform bills, I’m introducing Senate Bill 1032, the Local Pension Protection Act of 2018. It would protect local pensions from being severely punished when they choose to leave the California Public Employees Retirement System (CalPERS) and fund their employee retirements with a different plan.
“A dramatic example is Loyalton, population 862, which has just one employee and four retirees. When it chose to leave CalPERS in 2013 because of rising costs it couldn’t afford, CalPERS charged it with a $1.66 million ‘termination fee,’ forcing pension cuts by 60 percent rather than pay the extravagant fee the small community could not afford.
California Government Code Section 20573 stipulates the CalPERS “board may negotiate with … the governing board of any agency or agencies the terms and conditions of the termination and of the payment of unfunded liabilities.”
SB 1032 would modify that to allow termination “at the agency’s will and would allow agencies to seek more affordable alternatives.”
If you would like to request an interview with Senator John Moorlach, please contact John Seiler at firstname.lastname@example.org or 714-662-6050.
About Senator John Moorlach (R-Costa Mesa):
State Senator John Moorlach represents the 37th district of California, is a trained Certified Financial Planner and is the only trained CPA in the California Senate. He gained national attention 22 years ago when he was appointed Orange County Treasurer-Tax Collector and helped the County recover from its bankruptcy filing – at the time the largest municipal bankruptcy in U.S. History.