Professional Documents
Culture Documents
EQUITY ISSUES
• The study’s research and findings clearly illustrate how poorly the private
sector is doing in providing for retirement security of its employees. In
one example, the retirement benefits discussed were valued at less than
three times final annual pay, a level that most, if not all, financial
planners would consider insufficient for a secure retirement. Instead of
advocating for retirement security for all Californians, CFFR and the
studies author’s contend that an inadequately funded retirement is fine for
everyone.
FACT SHEET: CFFR PROPOSALS FLAWED
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As the Little Hoover Commission has acknowledged, for over 60 years, the courts
in this state have recognized that public employee pensions are contractual
promises of deferred compensation made by the employer. These
contracts are protected from impairment by both the California and United
States Constitutions. The study recommends taking away these benefits in
violation of employees’ constitutional rights expressly conceding that it,
“leaves to others the critical matter of the extent to which application of
these reforms to current program members would be legally feasible.”
METHODOLOGY
THE STUDY IS BASED ON ARTIFICIAL MODELS AND DOESN’T USE REAL DATA
• The report is a theoretical exercise, not a factual analysis. The basis of
the findings are “models” -- artificial constructs based on formulas, not
actual data reflecting the experience, demographics, and trends seen with
pensions and members. For example, the study claimed a California
Highway Patrol officer can retire at age 50 with 90% of pay, but fails to
state this would be rare since most officers do not start working at the age
of 20.