Pension Reform

Issues Update

CalPERS Tackles Issues Raised by City of Bell Salary Controversy
August 18, 2010

CalPERS is taking several actions to address concerns raised by the City of Bell salary controversy.  They include:

• Posting reviews of public agency membership and payroll data submitted to the retirement system
• Highlighting significant findings of public agency reviews and regularly report them to the CalPERS Board
• Establishing procedures and guidelines for CalPERS working-level staff to notify supervisors and senior management of unusually high compensation and salary increases such as those that occurred in Bell

In addition, the CalPERS has established the Public Employee Compensation and Benefits Task Force, which includes CalPERS staff and representatives of all major constituent groups including public employer organizations such as the League of California Cities and the California State Association of Counties, employee and labor organizations, and legislative staff.  The task force will focus on three key areas:

• Options for providing greater public disclosure of public employee compensation, benefits, and other information related to total employee compensation and benefits
• Options regarding caps on total compensation that can be considered for retirement purposes
• Options for mitigating the impact of excessive salaries on the retirement costs of a public employee’s previous public employers and other public agencies in the same liability risk pool

CalPERS had previously announced plans to review the compensation of CalPERS-covered employees who earn $400,000 or more per year in salary and will conduct a second phase review to look at CalPERS member salaries of $245,000 per year and above.

 

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