NCPERS' executive board, meeting on December 4, declared its total opposition to this constitutional amendment and committed NCPERS' resources to fight this effort to destroy the retirement plans of millions of California public employees.  "It doesn't make sense to scrap a good defined benefit plan and replace it with individual defined contribution plans that would make public employees' pensions subject to the ups and downs of the stock market," stated NCPERS President Robert Podgorny.  In the end, California taxpayers would see costs rise, public services deteriorate and new pressure on state and local governments to provide safety nets for these workers.  NCPERS is committed to fighting this amendment and those who support such a change in order to reap financial benefits at the expense of public employees.  NCPERS joined with other state and local officials in a press conference briefing on this issue on Friday, December 3, prior to the introduction of ACA5. 

Longer term, switching to a privatized system will cost the state $18 billion in CalPERS investment out of California�s economy. It will also cost the state influence in the nation�s financial community �Eas the largest and third-largest pension funds, CalPERS and CalSTRS carry tremendous leverage to hold corporate CEOs accountable to their shareholders.

The proposal could also dramatically increase the pressure on California�s fragile safety net, as employees outlive their retirement benefits or, worse, neglect to save at all.

Assemblymen Richman has indicated that if he fails to get a constitutional amendment approved by the assemby in time for the 2006 ballot, he will go the initiative route and get it placed on the 2006 ballot. 

The California Professional Firefighters (CPF) has prepared some background materials on the issue and these can be viewed by clicking here.  Stay tuned for more update and information on this issue that affects not only California, but the nation as well.