DFS-21 - San Bernardino County Superintendent of Schools

From: Melissa Anderson
Sent: Tuesday, August 28, 2012 3:29 PM
To: BSD-CBO List; BSD-Fiscal Srvs Mgrs List; BSD-Community College; newpy; persadmin;
Alex Lucero - Ex. Dir - New Visions - SBCUSD; Alicia Anderson - Bus Dir Excelsior -
VVUH; Andrea Tennyson; Antonette Sims, Ex Dir, Excel Prep - SBCUSD; Bob Stranger -
Inland Leaders - Yucaipa; Bonnie Bensen, CFO, Hardy Brown College Prep - SBCUSD;
Brenda Miller - Options for Youth-Upland & VVHS &SBCity; Brook Sell - New Dir
Lucerne Valley Career Acad-Lucerne; Cantu - PSA - SBCity; CarySharp-Attendance-
SkyMtn-Lucerne; Cathy Kelley - CBO- Oxford - Chino; Chala Love Salisbury - Dir -
Crosswalk & Pathway-Hesperia; Cheryl Dale; connie brown; Grove-Redlands; cynthia
pouvaranukoah-AdminAsst-Summit-Hesperia; D.D.Kline,Financial Analyst - Sky Mtn -
Lucerne; Dante Simi,CEO,Alta Vista Public - Adelanto; Darrell Redmond -
Mojave,Sedona,Riverside - Oro Grance; Debbie Given - Accountant - Excelsior - VVUH;
Debra Tarver - Ex Dir - LaVerne Elem - Hesperia; Denise Griffith-Dean-Hesperia; Diane
Stover-Alta Vista - Adelanto; Dorothy Lee - EdTec,Inc.- Inland Leaders - Yucaipa &
Nova Meridian (State); Dr. Florante Parrenas - Crownridge..- SBCity; Dr. Mildred Henry -
PAL - SBCUSD; Dr.Jennifer Kliewer,DeputySupt,OptionforYouth-SBCUSD; Dwaine
Radden - PAL - SBCUSD; Esther Estrada - Casa Ramona - SBCUSD; Gary Scott -
Financial Contact - Laverne & Summit - Hesperia; Gena Engelfried, Admin - Grove -
Redlands; geri terranova - Mtn View - Victor Elem; Greg Pounds-Ex Dir-Nova Meridian-
State of CA-; GregLundeen-CBO-RiversidePrep - OroGrande; Jack Mung - Budget
Analyst-Mirus Secondary-Hesperia; James Quinn (CBO) - Acad Excel & Norton (Apple &
SBCSS); Jared Mecham; Jeff Brown - CFO-Alta Vista - Adelanto; Jeff Litel; Jennifer Ruiz -
Adelanto Charter Academy - Adelanto; joseph andreasen; mojave & Riverside Prep &
Sedona - OroGrande; Karl Yoder-CFO fin svcs company for -Encore & Oxford & Carden;
Kathy Toy - PSA - SBCity; Kelly Theofanis - SOAR- EdTech,Inc; Ken Larson - Alta Vista
Public School - Adelanto; Kristin Kraus-Co-Dir-SOAR-SBCUSD; Lawrence Hampton, Ex
Dir, PAL-SBCUSD; Linda Piercy-Acad for Acad Excel - Apple Valley; Linda Rueter - 6th st
Prep - Victor Elem; Lisa Groot-Crosswalks & Pathways -Hesperia; Lynne Alipio - Mirus -
Hesperia; Mike Gordon - Ex Dir Inland Leaders - Yucaipa; Mike Hayhurst, Executive Dir -
Excelsior - VVUH; Natalie Yildiz-Bus Mgr-Competitive Edge-Yucaipa; Nelia Malihan-
Mirus-Hesperia= Sr.Fin Acct; Nick Califato - Coord Business-Oxford Prep-Chino; Patricia
Campbell; Financial Dir ASA-SBCUSD; Peggi Hazlett - PSA - SBCity; Peter Wesch-
Accountant-Casa Ramona-SBCUSD; Phil Dotson - Dir - Summit -Hesperia; Phillip
Tenpenny (Helendale); Queta Luguin - Financial Consult- Excel Prep- SBCUSD; Randy
Gaschler, CFO, Sky Mtn - Lucerne; Steve Filson - PSA - SBCity; Sue Roche - Ex Dir -
Oxford- Chino Valley; SusanClark-Admin-SktMtn - Lucerne; Tiffany Lyons - Principal -
Mtn View Montessori-Victor Elem; Tim Smith - Carden - Ex Director - SBCityUSD; Trisha
Lancaster, Dir- SOAR - SBCUSD; Virgadean Richmond - CharterSchoolMgmt - PSA -
SBCity; CASA RAMONA; CROSSWALK/PATHWAYS; CROWN RIDGE ACADEMY;
ENCORE/OXFORD PREP; HIGH DESERT; INLAND LEADERS; LA VERNE/ADELANTO;
LEWIS CENTER; NOVA MERIDIAN/SOAR; PAL; PUBLIC SAFETY ACADEMY; Gary Thomas
Cc: BSD-ExecutiveStaffList; BSD-ALL DFS; BSD-BAS List; financial; Payroll Helpdesk List
Subject: RE: Pension Reform Agreement Reached
Hello again,
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As you can imagine, Governor Brown’s announcement regarding pension reform has caused a whirlwind of
activity and questions! Unfortunately we do not have the fine details of the plan, nor do we know which
statutory changes may be necessitated as a result.
Just moments ago we received an email from CalSTRS, which includes a message from Ed Derman,
CalSTRS’ Deputy CEO.
Here is the message from Ed:
As you have undoubtedly heard by now, an agreement between the Legislature and the Governor has been
reached on changes to public pensions provided by CalSTRS, CalPERS and county retirement systems. At this
point, the legislative conference committee considering pension reform will be meeting sometime today to
report out the proposed statutory changes needed to implement the agreement. We have not seen the final
language, but we anticipate there will be a number of changes in the benefit structure that primarily affect new
members, not existing members of CalPERS or CalSTRS. One significant change in what the Governor proposed is
that there will be no hybrid plan; the pension will be based entirely on a defined benefit plan, but there will be
limits , applicable to new members, in the compensation that will count toward that defined benefit. For new
state employees covered by Social Security, that limit would currently be $110,100, and for new CalSTRS
members, not covered by Social Security, the limit would be 20% higher, or $132,120. In addition, the benefit for
new members will be based on a formula of 2% of final compensation per year of service at 62 years of age. The
maximum percentage for CalSTRS members will be 2.4% at age 65; for other non‐safety employees, it will be
2.5% at age 67.
For existing members, the changes appear to eliminate the ability to purchase airtime, require the forfeiture of
benefits if a felony is committed in the course of performing official duties, and, perhaps, impose additional
limitations in employment after retirement. Until we see the specific language, however, we can’t be sure.
In addition, SCR 105 has been introduced to encourage CalSTRS to work with stakeholder groups to develop
options for funding the DB Program, and submit those options by February 15, 2013.
Both the pension reform legislation and the resolution must be passed by the Legislature by midnight Friday,
and the Governor will have until the end of September to sign the pension legislation, which we presume he will
do. After we have had a chance to review the language, we will report back to you on the specifics.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I hope this helps clarify a few things. Of course the real detail will be forthcoming in the specific bill
language, so until then we can only speculate…
Stay tuned,
Melissa
Melissa Anderson, Chief
District Financial Services
San Bernardino County Superintendent of Schools
760 E. Brier Drive
San Bernardino, CA 92408
(909) 388-5701
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I have enough money to last the rest of my life…unless I buy something.
~ Jackie Mason
From: Melissa Anderson
Sent: Tuesday, August 28, 2012 2:28 PM
To: BSD-CBO List; BSD-Fiscal Srvs Mgrs List; BSD-Community College; newpy; persadmin; Alex Lucero - Ex. Dir - New
Visions - SBCUSD; Alicia Anderson - Bus Dir Excelsior - VVUH; Andrea Tennyson; Antonette Sims, Ex Dir, Excel Prep -
SBCUSD; Bob Stranger - Inland Leaders - Yucaipa; Bonnie Bensen, CFO, Hardy Brown College Prep - SBCUSD; Brenda
Miller - Options for Youth-Upland & VVHS &SBCity; Brook Sell - New Dir Lucerne Valley Career Acad-Lucerne; Cantu - PSA
- SBCity; CarySharp-Attendance-SkyMtn-Lucerne; Cathy Kelley - CBO- Oxford - Chino; Chala Love Salisbury - Dir -
Crosswalk & Pathway-Hesperia; Cheryl Dale; connie brown; Grove-Redlands; cynthia pouvaranukoah-AdminAsst-Summit-
Hesperia; D.D.Kline,Financial Analyst - Sky Mtn - Lucerne; Dante Simi,CEO,Alta Vista Public - Adelanto; Darrell Redmond -
Mojave,Sedona,Riverside - Oro Grance; Debbie Given - Accountant - Excelsior - VVUH; Debra Tarver - Ex Dir - LaVerne
Elem - Hesperia; Denise Griffith-Dean-Hesperia; Diane Stover-Alta Vista - Adelanto; Dorothy Lee - EdTec,Inc.- Inland
Leaders - Yucaipa & Nova Meridian (State); Dr. Florante Parrenas - Crownridge..- SBCity; Dr. Mildred Henry - PAL -
SBCUSD; Dr.Jennifer Kliewer,DeputySupt,OptionforYouth-SBCUSD; Dwaine Radden - PAL - SBCUSD; Esther Estrada -
Casa Ramona - SBCUSD; Gary Scott - Financial Contact - Laverne & Summit - Hesperia; Gena Engelfried, Admin - Grove -
Redlands; geri terranova - Mtn View - Victor Elem; Greg Pounds-Ex Dir-Nova Meridian-State of CA-; GregLundeen-CBO-
RiversidePrep - OroGrande; Jack Mung - Budget Analyst-Mirus Secondary-Hesperia; James Quinn (CBO) - Acad Excel &
Norton (Apple & SBCSS); Jared Mecham; Jeff Brown - CFO-Alta Vista - Adelanto; Jeff Litel; Jennifer Ruiz - Adelanto
Charter Academy - Adelanto; joseph andreasen; mojave & Riverside Prep & Sedona - OroGrande; Karl Yoder-CFO fin svcs
company for -Encore & Oxford & Carden; Kathy Toy - PSA - SBCity; Kelly Theofanis - SOAR- EdTech,Inc; Ken Larson -
Alta Vista Public School - Adelanto; Kristin Kraus-Co-Dir-SOAR-SBCUSD; Lawrence Hampton, Ex Dir, PAL-SBCUSD; Linda
Piercy-Acad for Acad Excel - Apple Valley; Linda Rueter - 6th st Prep - Victor Elem; Lisa Groot-Crosswalks & Pathways -
Hesperia; Lynne Alipio - Mirus - Hesperia; Mike Gordon - Ex Dir Inland Leaders - Yucaipa; Mike Hayhurst, Executive Dir -
Excelsior - VVUH; Natalie Yildiz-Bus Mgr-Competitive Edge-Yucaipa; Nelia Malihan-Mirus-Hesperia= Sr.Fin Acct; Nick
Califato - Coord Business-Oxford Prep-Chino; Patricia Campbell; Financial Dir ASA-SBCUSD; Peggi Hazlett - PSA - SBCity;
Peter Wesch-Accountant-Casa Ramona-SBCUSD; Phil Dotson - Dir - Summit -Hesperia; Phillip Tenpenny (Helendale);
Queta Luguin - Financial Consult- Excel Prep- SBCUSD; Randy Gaschler, CFO, Sky Mtn - Lucerne; Steve Filson - PSA -
SBCity; Sue Roche - Ex Dir - Oxford- Chino Valley; SusanClark-Admin-SktMtn - Lucerne; Tiffany Lyons - Principal - Mtn
View Montessori-Victor Elem; Tim Smith - Carden - Ex Director - SBCityUSD; Trisha Lancaster, Dir- SOAR - SBCUSD;
Virgadean Richmond - CharterSchoolMgmt - PSA - SBCity; CASA RAMONA; CROSSWALK/PATHWAYS; CROWN RIDGE
ACADEMY; ENCORE/OXFORD PREP; HIGH DESERT; INLAND LEADERS; LA VERNE/ADELANTO; LEWIS CENTER; NOVA
MERIDIAN/SOAR; PAL; PUBLIC SAFETY ACADEMY
Cc: BSD-ExecutiveStaffList; BSD-ALL DFS; BSD-BAS List; financial; Payroll Helpdesk List
Subject: Pension Reform Agreement Reached
Hi all ~
As you may have heard, Governor Brown held a press conference today to announce the details of a
pension reform agreement reached by legislative leaders. Below is the press release, with bill language
to follow in the next day or two.
Governor Brown Announces Pension Reform Agreement to Save Billions by Capping Benefits,
Increasing the Retirement Age and Stopping Abuse
8-28-2012
LOS ANGELES – Governor Edmund G. Brown Jr. today outlined a sweeping pension reform agreement that
saves billions of taxpayer dollars by capping benefits, increasing the retirement age, stopping abusive practices
and requiring state employees to pay at least half of their pension costs.
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“These reforms make fundamental changes that rein in costs and help to ensure that our public retirement
system is sustainable for the long term. These reforms require sacrifice from public employees and represent a
significant step forward,” said Governor Brown.
“If the legislature approves these reforms, public retirement benefits will be lower than when I took office in
1975,” said Governor Brown. “Additional changes would require a vote of the people,” he added.
The pension reform agreement includes substantial benefit rollbacks for public employees. It requires all current
state employees and all new public employees to pay for at least 50 percent of their pensions and establishes
this as the norm for all public workers in California. Importantly, these new reforms eliminate state-imposed
barriers that have prevented local governments from increasing employee contributions.
Further, it bans abusive practices used to enhance pension payouts.
“No more spiking, no more air time, no more pensions earned by convicted felons,” said Governor Brown.
“We're cleaning up a big mess and the agreement reached with Legislative leaders today is historic in its far
reaching implications.”
Public Employee Pension Reform Act of 2012
Caps Pensionable Salaries
• Caps pensionable salaries at the Social Security contribution and wage base of $110,100 (or 120 percent of
that amount for employees not covered by Social Security).
Establishes Equal Sharing of Pension Costs as the Standard
• California state employees are leading the way and are paying for at least 50 percent of normal costs of their
pension benefits. Requires new employees to contribute at least half of normal costs, and sets a similar target for
current employees, subject to bargaining.
• Eliminates current restrictions that impede local employers from having their employees help pay for pension
liabilities.
• Permits employers to develop plans that are lower cost and lower risk if certified by the system’s actuary and
approved by the legislature.
• Provides additional authority to local employers to require employees to pay for a greater share of pension
costs through impasse proceedings if they are unsuccessful in achieving the goal of 50-50 cost sharing in 5
years.
• Directs state savings from cost sharing toward additional payments to reduce the state’s unfunded liability.
Unilaterally Rolls Back Retirement Ages and Formulas
• Increases retirement ages by two years or more for all new public employees.
• Rolls back the unsustainable retirement benefit increases granted in 1999 and reduces the benefits below the
levels in effect for decades.
• Eliminates all 3 percent formulas going forward.
• For local miscellaneous employees: 2.5 percent at 55 changes to 2 percent at 62; with a maximum of 2.5
percent at 67.
• For local fire and police employees: 3 percent at 50 changes to 2.7 percent at 57.
• Establishes consistent formulas for all new employees going forward.
Ends Abuses
• Requires three-year final compensation to stop spiking for all new employees.
• Calculates benefits based on regular, recurring pay to stop spiking for all new employees.
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• Limits post-retirement employment for all employees.
• Felons will forfeit pension benefits.
• Prohibits retroactive pension increases for all employees.
• Prohibits pension holidays for all employees and employers.
• Prohibits purchases of service credit for all employees.
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We will definitely keep you apprised of any developments as they occur…
Take care,
Melissa
Melissa Anderson, Chief
District Financial Services
San Bernardino County Superintendent of Schools
760 E. Brier Drive
San Bernardino, CA 92408
(909) 388-5701
I have enough money to last the rest of my life…unless I buy something.
~ Jackie Mason
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