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  1. #1
    Senior Member JohnDoe2's Avatar
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    CA. State panel approves 5% pay cut for lawmakers, elected officials

    State panel approves 5% pay cut for lawmakers, elected officials

    By Judy Lin The Associated PressAssociated Press
    Posted: 05/31/2012 03:37:39 PM PDT
    May 31, 2012 10:39 PM GMTUpdated: 05/31/2012 03:37:45 PM PDT

    SACRAMENTO - A state panel on Thursday sent a message about the severity of California's $15.7 billion budget deficit by approving a 5 percent pay cut for lawmakers and statewide elected officials, including Gov. Jerry Brown.

    The California Citizens Compensation Commission, which sets pay and health benefits for those offices, voted 5-1 in favor of the cuts that take effect Dec. 3.

    "I agree that this isn't going to make a dent, but I think it will send a message that we have to move on. ... Everybody has to sacrifice and a lot have done so much more than others," said Commissioner Charles Murray, who proposed the reduction.

    The independent panel previously reduced salaries for 120 members of the Legislature and 12 statewide officeholders by 18 percent in 2009.

    California lawmakers do not receive pensions but are the highest paid in the nation with a base annual salary of $95,290. Nearly all receive additional tax-free per diem payments of about $30,000 a year.

    The pay cut will drop their salaries to $90,525, which commissioners said would still keep them at the top of the national list on a cash basis. The leaders of the Assembly and Senate will be cut from $109,584, to $104,105.

    Brown's salary will be reduced from just under $174,000 to about $165,000. Lt. Gov. Gavin Newsom will see his $130,000 salary reduced to about $124,000. And the pay of Attorney General Kamala Harris will drop from about $151,000 to less than $144,000.
    Commissioner Ruth Lopez Novodor, the only member to vote against the proposal, said the 5 percent cut should only take effect if the governor successfully negotiates a pay reduction for state workers. Brown has proposed talks with unions to reduce the state workweek from five to four days.

    The governor estimates that proposal would save the state 5 percent, or $402 million, on salaries. In addition, his proposed budget would reduce the state workforce to about 216,000, down from 225,000 workers in 2007-08 and about 4,000 fewer than last year.

    State employees temporarily lost pay through furloughs ordered by former Gov. Arnold Schwarzenegger. The cut was about 14 percent but pay has since been restored and relatively few state workers have lost their jobs to layoffs.

    Assembly Speaker John Perez said by cutting pay twice, the commission could create a political system where only the wealthy can afford to serve.

    "Since the Legislature has already taken an 18 percent pay cut, which is still in place while furloughs for state workers have ended, we believe the commission's cut is punitive and ignores the size and complexity of the job and the facts regarding comparable legislative bodies," Perez said in a statement.

    Thomas Dalzell, chairman of the commission, chose to abstain from Thursday's vote. He noted that the governor makes less than trial judges and that lawmakers' salaries are roughly equivalent to a skilled construction worker.

    "To cut them further boggles my mind," Dalzell said.

    Commissioner John Stites said lawmakers and other state elected officials should lead by example and cut their pay 5 percent.

    "It's their responsibility to take care of the economy, and it's failing," Stites said. "The state is going under. There's going to be significant reductions. It's going to have to come from public employees regardless of where they are. We start here."

    The panel also remains divided over the scope of its authority, specifically whether it has the power to change travel and living expenses. On Thursday, the panel voted to ask the Department of Personnel Administration to approve funding for a private attorney to make a recommendation.

    State panel approves 5% pay cut for lawmakers, elected officials - ContraCostaTimes.com
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  2. #2
    Senior Member JohnDoe2's Avatar
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    Chronicling civil-service life for California state workers

    May 31, 2012

    CalPERS cuts pension benefits for Vernon officials

    CalPERS has whacked the pensions for several former City of Vernon officials in the wake of the scandal there and a subsequent audit that looked at city records from 2002 to 2010.

    The decisions severely cut or completely eliminate benefits for most of the named CalPERS members.

    Here's a CalPERS memo detailing the fund's determinations followed by letters sent to each person earlier this month explaining the penalties and the rationale:

    City of Vernon Membership and Compensation

    Below is the information regarding the membership and compensation determinations for the City of Vernon employees. Based on the information we received, you will find that there were service credit periods removed for most of these members. In our letters addressed to the individuals below, we stated that determinations were given as a result of conflicting and insufficient information. The individuals and/or the City may provide additional documentation to supplement the information previously submitted. Any additional information must be submitted within 30 days of the date of the letter and must be specific and clearly show evidence that the members properly held the specific positions listed and that those positions were established and meet the requirements outlined by law, resolution or ordinance.

    Eric Fresch (All service removed)
    · Independent Contractor for service with the City of Vernon making him ineligible for membership for service with the City from 1986-2010
    · 28.746 total years of service removed - of which 16.1 years was arrears service
    · 5 years of Additional Retirement Service Credit removed - Reimbursement and/or credit to be effectuated in accordance with State and Federal law.
    · Safety Classification denied
    · If membership is proved CalPERS cannot determine payrate due to conflicting and lack of information.
    · Pay schedules provided do not meet CalPERS requirements and contract agreements conflict with pay schedules provided.

    Jeffrey Harrison (All service removed)
    · Independent Contractor for service with the City of Vernon making him ineligible for membership for service with the City
    · 4.676 total years of service removed
    · Safety Classification denied
    · If membership is proven CalPERS still cannot determine payrate due to conflicting and lack of information.
    · Pay schedules provided do not meet CalPERS requirements and contract agreements conflict with pay schedules provided.

    Eduardo Olivo
    · Independent Contractor for service with the City of Vernon making him ineligible for membership for service with the City for 1994-2002
    · 15.265 total years of service removed - of which 7.770 years was arrears service
    · 5 years of Additional Retirement Service Credit removed - Reimbursement and/or credit to be effectuated in accordance with State and Federal law.
    · If membership is proven CalPERS still cannot determine payrate due to conflicting and lack of information.
    · Pay schedules provided do not meet CalPERS requirements and contract agreements conflict with pay schedules provided.

    Roirdan Burnett
    · Eligible membership date was changed to February 6, 2008 from December 3, 2002
    · Part of his 4.462 years of service credit is determined to be as an Independent Contractor but still determining the period - If no documentation is provided, all service will be removed
    · If membership is proven CalPERS still cannot determine payrate due to conflicting and lack of information.
    · Pay schedules provided do not meet CalPERS requirements and contract agreements conflict with pay schedules provided.

    Bruce Malkenhorst Jr. (Membership and Comp)
    · Part of his 10.647 years of service credit is determined to be as an Independent Contractor but still determining the period - If no documentation is provided, all service will be removed
    · Safety Classification denied
    · Pending the verification of membership, payrates have been verified from 11/97-6/05 and 10/07-last day of employment
    · If membership is proven the payrate cannot be determined from 7/05-9/07
    · Member has requested a refund
    · Member informed, upon correction of payroll elements by the City, CalPERS will contact member regarding a refund and/or credit of normal contributions. Reimbursement and/or credit to be effectuated in accordance with State and Federal law.

    Bruce Malkenhorst Sr. (Comp Issue Only)
    · The pre-deprevation letter, which includes our preliminary determination to adjust his allowance downward, was returned to program from LEGO on 5/21/12 for review. The letter will be mailed Friday 5/25/12, giving them until 6/25/12 to respond.
    · He held multiple positions simultaneously, which were unable to be pulled apart to determine compensation related to each position
    · His payrate did not comply with the requirements of being paid "pursuant to publicly available pay schedules" under the meaning of that phrase in the statutory and regulatory definitions for payrate. In addition, the amounts failed to meet other definitional requirements of payrate in so far as they were not for the normal duties of one full-time position and were amounts reported for duties or services performed for other simultaneous positions that would constitute "overtime" under the PERL.
    · In an effort to determine a reportable payrate for the member CalPERS will be using $7,875 to calculate his allowance. This amount is the payrate for the position of the acting City Clerk, which is one of the position Mr. Malkenhorst held during the tenure of his employment. The $7,875 payrate was given to Mr. Malkenhorst's successor. It was provided in a Resolution signed June 29, 2005, and effective July 1, 2005. Mr. Malkenhorst's retirement date was July 1, 2005.
    · His longevity has been determined to be limited to 20%, instead of the 25% his initial allowance was calculated with. This is due to the additional 5% only being available to him.
    · The final compensation amount of $44,128 originally used to calculate his retirement allowance has been reduced to $9,450. This will reduce his allowance amount from $45,073.52 to $9,654.

    Mark Whitworth (Comp Issue Only)
    · The City is currently reporting a payrate based on his service rendered as the Fire Chief. This compensation includes a payrate of $16,599 and 5% ($829.95) Educational Incentive for a total reported compensation amount of $17,429.01.
    · Mr. Whitworth is currently working in multiple positions and the City must substantiate the full-time payrate for each position and report the payrate(s) accordingly.
    The pay must be for services rendered on a full-time basis during normal working hours and cannot be for additional duties or services related to other positions

    Donal O'Callaghan
    · Member refunded
    · Notes have been added to the system in order to insure he cannot reinstate or redeposit without being reviewed and approved by the Compensation Committee.

    The State Worker: CalPERS cuts pension benefits for Vernon officials
    NO AMNESTY

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