Headlines about "Government plans - state and local - misc"
Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Supreme Court Narrowly Upholds State's 'Imputed Service' Formula for Disability Pensions
Excerpt: "The lynchpin of the Supreme Court's decision was its interpretation of Hazen Paper Co. v. Biggins, 507 U.S. 604 (1993), which involved a 62-year old employee who claimed he was unlawfully discharged by the employer in order to avoid the payment of pension benefits that were about to vest. In Hazen, the Supreme Court found that, without evidence of intent, a dismissal based on pension status was not a dismissal because of age." (Deloitte via BenefitsLink.com)
Decent Pay, Benefits, Job Security, Make Public Sector Jobs Attractive in Uneasy Economy
Excerpt: "As the nation's economy continues to suffer, schools, villages and other areas of the public sector are being viewed as good places to work with traditional pensions and lower-cost health-care benefits making up for what can be reduced annual salaries. That public-sector interest is backed up by national employment trends charted by the U.S. Department of Labor in 2007, the most recent available." (Daily Herald)
[Guidance Overview] U.S. Supreme Court Rules Disability Benefit Formula That Credits Younger Workers with Additional Years of Service Does Not Violate the ADEA (PDF)
Pages 4-6 of 11 pages. Excerpt: "The Court's opinion saves the imputing of service tied to pension eligibility from being deemed per se unlawful. Because of the numerous factors and qualifications referred to in the majority opinion, it is unclear, however, how broadly its reasoning and rule may apply beyond this context." (Proskauer Rose LLP)
Lawsuit Raises Questions on Administration of CalPERS PPO Plans
Excerpt: "A lawsuit before California's Second District Court of Appeal centers on the question of whether public employees who get health benefits through CalPERS can sue insurers if they deny treatment, the Los Angeles Daily Journal reports." (California HealthCare Foundation)
[Official Guidance] Text of IRS Notice 2008-62: Nonapplication of 457(f) and 409A to Certain Recurring Part-Time Compensation Arrangements (PDF)
4 pages. Excerpt: "The [upcoming proposed section 457(f)] regulations to be proposed are expected to address certain types of arrangements involving recurring part-year compensation, including common arrangements involving public school employees who provide services during a 10- month school year and elect to be paid ratably over 12 months. It is expected that the regulations would provide that if certain conditions described below are satisfied, § 457(f) would not apply to such arrangements. It is also expected that a conforming change will be proposed for regulations under § 409A, so that § 409A also will not apply to such arrangements if such conditions are met." (Internal Revenue Service)
Vermont Public Pension Plan Changes Effective Today
Excerpt: "The pension plan used by Vermont state employees is changing today. Now many state employees will see more money from their paychecks going into their pensions. New state employees will have to work for three more years to receive full retirement benefits. And the age of full retirement is increasing from 62 to 65." (AP via Vermont Public Radio)
[Guidance Overview] Supreme Court OKs Employer Use of Age as a Factor In Pension Plans
Excerpt: "What does this decision mean for public and private employers going forward? Basically, it means that public workers in Kentucky and states with similar pension plans can continue to rely on the promise of disability retirement benefits if they become disabled. It also means that public and private employers who feared their plans were implicated by the Kentucky Retirements Systems case -- a number estimated at 2,700 employers and 25 million affected workers -- do not have to cut benefits, increase employer contributions, or otherwise restructure their plans to bring them into compliance with the ADEA." (Porter Wright Morris & Arthur LLP)
[Guidance Overview] High Court Allows Different Calculations for Disability and Age-Related Retirements
Excerpt: "A state retirement system did not violate the Age Discrimination in Employment Act (ADEA) by crediting young workers with additional years of service in calculating disability retirement benefits, according to a June 19 Supreme Court decision (Kentucky Retirement Systems et al. v. Equal Employment Opportunity Commission, No. 06–1037)." (Wolters Kluwer)
New Jersey Budget Cut but Leaves 'Pink Elephant' of Pensions
Excerpt: "Gov. Jon S. Corzine and the Democratically controlled state legislature accomplished a legislative coup of sorts last week when they approved a $32.9 billion state budget that is actually $600 million lower than the current year's budget, and that for the first time cuts back on pension and health benefits for new state workers and public school teachers." (The New York Times; free registration required)
[Opinion] It's Good to See Some Florida Cities Scrapping Costly Pension Systems
Excerpt: "Leesburg is the latest Central Florida city to recognize its pension plan -- which grew during the boom years -- is getting harder and harder to support as retirees live longer and investments take a dive. Leesburg commissioners wisely decided to cap pensions and begin providing employees the government's equivalent of a 401(k) plan that most businesses adopted years ago." (Orlando Sentinel)
Minnesota Court Blocks Retiree Health Changes
Excerpt: "A Minnesota judge has blocked the city of Duluth from making any changes to the health coverage of two of its retirees and a third retired employee's spouse." (PLANSPONSOR.com; free registration required)
Compromise Reached on San Diego, California, Pension System Overhaul
Excerpt: "Mayor Jerry Sanders and City Council President Scott Peters Wednesday reached a compromise on competing ballot initiatives aimed at overhauling San Diego's pension system. The compromise would create a hybrid pension plan for newly hired, nonpublic safety employees that combines a conventional retirement plan with a 401(k)-type savings plan." (City Wire via 10News.com)
Kentucky Govenor Signs Pension Reform Bill
Excerpt: "[Governor] Beshear signed into law House Bill 1, the Pension Reform Act. Counties, cities and school districts are expected to receive immediate savings of about $56 million, and the state's unfunded pension liability is expected to decrease by billions of dollars, the governor's office said in a news release." (Business First of Louisville; bizjournals.com; free registration required)
[Opinion] Legislative Pension Mandates Drain Florida's Municipal Budgets
Excerpt: "[A] bill passed by the 2006 Legislature expanded worker's compensation and pension-disability benefits for law enforcement, firefighters and emergency medical technicians. Everyone values the service provided by these public employees. They put their lives on the line everyday. I appreciate their valor and commitment to serve. But ultimately the question becomes: Who is going to pay for these state-mandated benefits? The answer is, your city government and residents." (Miami Herald)
[Opinion] Yes, A Public Pension Can Be Forfeited
Excerpt: "As Upton Sinclair might have said: It is difficult to get a man to understand something when their pensions depend on not understanding it. So it is when government lawyers study whether public pensions are secure. They really want to believe they are. Based on my reading of the New Jersey state constitution, I don't. Here's how I see it playing out." (NJ.com)
Detroit Police, Firefighting Retirees Sue to Stop Transfer from Pension Fund
Excerpt: "Retired Detroit police and firefighters filed a lawsuit Thursday asking the Wayne County Circuit Court to block the City of Detroit's plan to transfer $75 million from their pension fund to shore up the city's budget." (Detroit Free Press)
Weston, Connecticut Nears Agreement with Eligible Employees on Payment Plan for Retirement Fund
Excerpt: "Local leaders are willing to cover all upfront costs associated with making four town employees eligible for Municipal Employees Retirement Fund benefits from the date at which they should have originally become part of the plan. All the four need to do now is agree to the Board of Selectmen's proposed repayment plan, which would allow each employee a certain time period to repay their portion of the eligibility cost." (The Weston Forum)
Changes to San Diego Pension Plan Would Cut Back Benefits for New Hires
Excerpt: "San Diego voters may get the chance in November to ratchet down retirement benefits for new city hires starting next year. The changes would increase the minimum retirement age, reduce the maximum benefit payout and cut the taxpayer contribution to the retirements of city workers almost by half." (San Diego Union Tribune)
Public Funds Campaign Against Latest Efforts to Value Pension Liabilities at Market Rates
Excerpt: "A move to market valuation could lead to public plans using a much lower discount rate, such as 4% to 5%, compared with the current 7% to 8.5%, and result in reporting higher liabilities . . . ." (Pensions & Investments)
Issue Report - A Framework for Decision Making on Funding State Retiree Health Care Benefits
Excerpt: "Written by the Institute for Public Policy and Social Research (IPPSR) at Michigan State University with a grant from the Center. It is the result of a request from the Michigan House of Representatives Committee on Retiree Health Care Reforms for research on retiree health care funding options." (Center for State and Local Government Excellence)
[Guidance Overview] Supreme Court Charts New Course in Pension Plan Case Interpreting ADEA
Excerpt: "In Kentucky Retirement Income Systems v. Equal Employment Opportunity Commission, No. 06-1037 (June 19, 2008), the United States Supreme Court interpreted the Age Discrimination in Employment Act (ADEA) to permit Kentucky to increase disabled public safety workers' pensions to the level they would have attained at normal retirement age, even though that meant workers who became disabled after reaching retirement age would not receive any pension increase." (Littler Mendelson P.C.)
The Future of Public Employee Retirement Systems
Excerpt: "At a recent Wharton Impact conference hosted by the Pension Research Council, an energetic cast of academics, financial experts, regulators, and plan sponsors examined the challenges facing public retirement systems in the US and around the world." (Pension Research Council; registration required to download fulltext of paper)
[Guidance Overview] Supreme Court Issues Two Decisions Affecting Benefit Plans (PDF)
5 pages. Excerpt: "On June 19, the United States Supreme Court issued decisions in Kentucky Retirement Systems v. Equal Employment Opportunity Commission, . . . and in Metropolitan Life Ins. Co. v. Glenn, . . . . The first decision discusses the disparate impact test under the Age Discrimination in Employment Act (ADEA); the second addresses the standard of review to be applied by the courts when reviewing a decision of a claims fiduciary that may have a financial interest in the outcome of the decision." (Morgan, Lewis & Bockius LLP)
New Jersey Pension Changes Win Approval in Legislature
Excerpt: "It took three and a half hours of cajoling and twisting arms, but the Assembly finally passed a bill to tighten eligibility for state pensions and eliminate one state holiday just after 11 o'clock Monday night. After easily passing the Senate, the bill stalled in the Assembly, forcing Democratic leaders to scurry to line up the 41 votes needed to pass it." (NJ.com)
[Opinion] The Public Pension COLA Conundrum
Excerpt: "The huge problem facing public pension plans now is that we have entered a period of stagflation in which investment returns are unlikely to pay for COLAs. The 'free lunch' of strong investment returns -- in the 1990s and the middle of this past decade -- is no longer there to pay for benefits increases. If anything, many pension plans will suffer declining funding ratios as their investments fail to meet actuarial assumptions." (Governing.com)
Future Chicago City Workers Could Lose Out on Lush Pension Plan
Excerpt: "Newly hired employees would shift to the 401(k) plans favored by private industry -- instead of the 'defined benefits' enjoyed by their older co-workers -- under a plan being pushed by the head of Mayor Daley's pension reform commission." (Chicago Sun-Times)
New York Legislature Making Progress on Pensions As Session Draws to a Close
Excerpt: "The legislation, drafted by Attorney General Andrew M. Cuomo's office and introduced by lawmakers late last week, would ban the widespread and costly practice in which school districts pay lawyers who do consulting work by enrolling them in the pension system. It would also prevent retired public employees from collecting their pensions even after they are rehired, a practice known as 'double dipping.'" (The New York Times; free registration required)
New York Legislators and Attorney General Agree on Pension Reform Package
Excerpt: "State legislators and New York Attorney General Andrew Cuomo have agreed on a sweeping package of pension reforms that increase the penalties for pension fraud and close the loopholes that have allowed some retirees to collect six-figure salaries on top of six-figure public pensions." (NewsDay)
[Opinion] Distinguishing among Employees Based on Pension Status
Excerpt: "To summarize and oversimplify, in Kentucky Retirement Systems the Court held that it was legal to provide lower benefits to police and firefighters who retire on disability at or near retirement age than to those who would have had to wait longer to qualify for regular retirement. Relying on Hazen Paper but moving well past it, the Court held that pension status is not a proxy for age here even though, in the Kentucky case, age is an explicit element of pension eligibility." (Pension & Benefits Blog)
New Jersey Teachers Protest State Pension Reform Plans
Excerpt: "On Friday night, the state Senate and Assembly budget committees approved an omnibus bill designed to limit most public employee pensions and benefits. They may be up for final votes before the full Senate and Assembly on Monday. Among other things, it would increase the retirement age of future employees from 60 to 62, require employees to earn $7,500 to qualifty for the pension system and tie that figure to the consumer price index. It also would require that employees work 20 hours to qualify for health benefits and would allow employees with other health benefits to take a cash payment worth 50 percent of the benefit's value." (pressofAtlanticCity.com)
CalPERS Panel Negotiates Lowest HMO Rate Increase in Decade
Excerpt: "Under the committee's recommendations, the monthly premium increases range from 3.75% for workers in Blue Shield of California's Net Value plan to 8.16% for Kaiser Permanente members in 2009. The increases also vary by region." (California HealthCare Foundation)
Supreme Court Finds No Age Bias in Kentucky Retirement System
Excerpt: "The court, in a 5-4 ruling, says the retirement system reasonably takes age and length of service into account when structuring benefits for disabled workers who are eligible for retirement." (AP via The New York Times; free registration required)
[Opinion] Joint Letter to Members of Congress Regarding Strength and Viability of Public Retirement Systems (PDF)
4 pages. Excerpt: "On behalf of the 20 national organizations listed . . . representing State and local governments and officials, public employee unions, public retirement systems, and more than 20 million working and retired state and local government workers and their beneficiaries -- we are writing to set the record straight with regard to the long-term viability and strength of State and local government employee retirement systems." (National Association of State Retirement Administrators)
Illinois Lawmakers Take No Action on Huge Pension Debt
Excerpt: "State lawmakers had the incentive and the opportunity to work on the nation's worst pension debt problem, but they left town last month without a new solution -- and with even more money problems because of their inaction. Here are some questions and answers about the latest on state government pensions." (AP via Chicago Tribune)
[Opinion] South Florida Cities Should Reform Their Pension Plans: Rich Payouts a Threat to Essential Services
Excerpt: "Pensions administered by some South Florida cities are so far out of line with reality that some government workers would be better off financially by retiring than working. This is a lose-lose situation for local residents whose taxes support the generous pensions, and city officials would be smart to begin to rethink their options." (The Miami Herald via Human Resource Executive Online)
Retirement Benefits in State and Local Governments in the United States, 2007 (PDF)
63 pages. Excerpt: "This summary presents findings of the 2007 National Compensation Survey (NCS) regarding detailed provisions of retirement plans in State and local governments." (U.S. Bureau of Labor Statistics)
Kentucky Governor Calls Special Legislative Session to Address Pension Reform
Excerpt: "Beshear, in a news release Tuesday afternoon, estimated that passage of pension reform legislation could save state and local governments as much as $500 million per year. It is expected immediately to provide $56 million in relief to county and city governments and school districts." (Business First of Louisville)
Connecticut Governor Vetoes Health Care Bill That Would Have Expanded State Employee Health Insurance Plan
Excerpt: "Connecticut Gov. Jodi Rell (R) on Friday vetoed legislation that would have allowed municipalities and small businesses to join the state's health insurance plan, the Hartford Courant reports." (Kaiser Family Foundation)
Law Firm Agrees to $4M San Diego Pension Mess Settlement
Excerpt: "A Houston law firm that was brought into San Diego's ongoing pension mess has agreed to a $4.35-million settlement with city officials." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Public Employers in Michigan May Not Offer Same-Sex Domestic Partner Benefits, Michigan Supreme Court Rules
Excerpt: "Michigan's Constitution prohibits public entities in that state from providing health insurance benefits to their employees' same-sex domestic partners, according to the Michigan Supreme Court. National Pride at Work, et al. v. Governor of Michigan, et al., No. 133429 (Mich. S.C. May 7, 2008)." (Deloitte via BenefitsLink.com)
Florida's Double Dipping Public Employees Cost Hundreds of Millions
Excerpt: "All of these employees are members of what's called the Deferred Retirement Options Plan or DROP. DROP guarantees public employees a lump sum payment, plus retirement benefits five years after enrolling in the program. New Port Richey State Senator, Mike Fasano says the DROP program was designed to weed out high paid public employees and then bring in new employees at lower salary. However Fasano says people are not doing that because they've found a loophole and are double dipping." (tampabays10.com)
[Opinion] New Hampshire Legislature Flubs Pension Reform
Excerpt: " In the end, lawmakers proudly announced that their hard work had quelled the fiscal crisis. Cities and towns next year will face a 20 percent increase in cost, not the feared 50 percent. But how could that happen, you may ask, when none of the cost-containment reforms were approved? With characteristic slight of hand, the Legislature decided to raid the retirement system's COLA reserve fund for the $250 million needed to offset municipal liability for one year." (The Nashua Telegraph)
South Florida Cities May Reexamine Pension Payouts
Excerpt: "City leaders throughout South Florida -- serving on the very bodies that made these payouts possible over the years -- are now taking aim at disparities like these as they grapple with big budget holes and pension payouts growing far faster than government bottom lines." (The Miami Herald)
New Jersey Lawmakers Sanction Benefit Reform Package
Excerpt: "Despite a fierce battle by Garden State unions, a New Jersey state Senate committee has approved a package of six reform proposals for pensions and health care coverage for future government workers." (PLANSPONSOR.com; free registration required)
Massachusetts Pension COLA Increases Have Some Town Officials Worried
Excerpt: "The amendment, which was passed by the state Senate in late May, is attached to section 15 of the state budget and asks for an increase, from $12,000 to $16,000 of the COLA base. The increase would allow retirees to receive an annual percentage raise on their pension benefit for up to $16,000 of income, instead of the previous $12,000 cut-off." (The Winchester Star)
Arizona District Kept Misusing Retirement Plan Despite Report
Excerpt: "The Maricopa County Community College District added at least two and as many as four employees from private special interest groups to the state retirement rolls despite a 2005 report by state auditors that found such deals 'improper.'" (East Valley Tribune)
Santa Rosa County, Florida, Schools Give Workers $10,000 Retirement Incentive
Excerpt: "The Santa Rosa County School District on Friday sent letters to 278 employees offering a $10,000 retirement incentive. The employees fall into two groups: - Employees eligible for normal retirement by July 1, meaning they have completed 30 years of service or are 62 years old and have completed at least six years with the district. - Employees in the Deferred Retirement Option Program who plan to leave on or after July 1." (pnj.com)
New York State Removes More Lawyers from Pension System
Excerpt: "Since beginning its review of attorneys improperly reported as employees to the state pension system, the comptroller's office has revoked or suspended the pensions of 13 people, four of them on Long Island. It has canceled pension credits for five people statewide, one of them on Long Island." (NewsDay)
New Jersey Political Appointees Dodge Bullet As Senate Panel OKs Pension Reforms
Excerpt: "While voting in favor of some long-term changes to the state's public pension plans, a Senate committee also rejected a proposal for a near-term revision that would have trimmed benefits for political appointees. Sen. Loretta Weinberg, D-Bergen, proposed more quickly shifting people appointed to paid positions on boards and commissions out of the traditional pension system into a new 401(k)-like plan at the end of their current terms, even if they're reappointed." (CourierPostOnline.com)
Kentucky Pension Reform Agreement Reached
Excerpt: "An agreement between the state House and Senate on proposed reforms to the state's pension system should pass without difficulty in a special General Assembly session, said Caldwell County's state Rep. Mike Cherry, one of the proposal's chief architects." (The Times-Leader Online)
[Official Guidance] Proposed IRS Regs: Qualified Nonpersonal Use Vehicles for Public Safety Officer Vehicles (PDF)
15 pages. Excerpt: "Qualified nonpersonal use vehicles are excepted from the substantiation requirements of section 274(d)(4) that apply to listed property as defined in section 280F(d)(4). These proposed regulations would add clearly marked public safety officer vehicles as a new type of qualified nonpersonal use vehicles. These proposed regulations would affect employers that provide their employees with qualified nonpersonal use vehicles and the employees who use such vehicles." (Internal Revenue Service)
Rep. Meek Introduces Legislation to Address Public Safety Retiree Tax Issue
Excerpt: "Section 828 of the Pension Protection Act of 2006 amended the tax code to allow retired public safety employees beginning at age 50 to take distributions from their defined benefit pension plans without paying the 10 percent early distribution tax. Section 828 was enacted recognizing that, due to nature of the profession and in many cases mandatory retirement ages, public safety employees typically retire earlier than the general population. Of course, 26 U.S.C. 72(t)(2)(A)(v) permits all other retirees to take distributions without the 10 percent tax, beginning at age 55. Unfortunately, since implementation of PPA Section 828, two issues have arisen that need to be fixed." (Cypen & Cypen)
[Official Guidance] Advisory Committee on Tax Exempt and Government Entities Releases Seventh Report (PDF)
367 pages. Excerpt: "On June 11, 2008 the [committee] presented six recommendations to the IRS Commissioner and TE/GE." (Internal Revenue Service)
New Jersey Bill Package Targets State Pension Abuses
Excerpt: "The proposals, which are combined in the 'Taxpayer Empowerment and Accountability Plan,' specifically address public pension abuses uncovered by Newsday. Two other key components of the package would bar school board attorneys from doing personal legal work for superintendents whose districts they represent and would require school districts to post online all information related to payrolls, pension benefits and administrators' contracts." (NewsDay)
Pension Liabilities Loom As States Try to Help Retirees
Excerpt: "The high price of gasoline and food is prompting many states to fatten cost-of-living increases for retired teachers and civil servants." (USA TODAY)
Connecticut House Takes Up Pension Revocation Bill
Excerpt: "The General Assembly approved legislation early Thursday that will allow the state to revoke pensions of corrupt elected officials and public employees." (NewsDay)
New Jersey Lawmaker Says Early Retirements Okay If Govenor Downscales Plan
Excerpt: "Lawmakers estimate a scaled-down early-retirement plan will add about $250 million to long-term pension obligations -- about half the cost of Corzine's original plan. The pension obligations will be whittled down, Buono said, by allowing workers to apply for early buyouts only after they've reached 58 years of age. Corzine's plan would have permitted workers as young as 50 to take them. It was designed to reduce the state payroll by close to 3,000 workers and produce about $136 million in immediate budget savings." (New Jersey On-Line LLC)
Kentucky Lawmakers Reach Agreement on Pension Plan
Excerpt: "Kentucky's state retirement system covers retirement benefits for more than 445,000 people. The system is facing an unfunded liability of more than $26 billion. Lawmakers have said that without swift action, the system is facing an eventual financial collapse." (Kentucky.com)
Colorado Governor Signs Bill Allowing Retirement Systems Merger
Excerpt: "Colorado Governor Bill Ritter on May 28 signed a bill establishing ground rules for a proposed merger of the Denver Public Schools Retirement System (DPSRS) into the Colorado Public Employees Retirement Association (PERA), the Denver Business Journal reported." (PLANSPONSOR.com; free registration required)
The West Virginia Teacher Retirement Plan Lawsuit
Excerpt: "An attorney representing hundreds of teachers and school service workers in West Virginia says he has a database of those workers who can talk specifically about how they were duped into signing up with life insurance company VALIC. It happened back when the newer teacher retirement system, the defined contribution plan, was formed." (West Virginia MetroNews Network)
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