Is the Governor’s Retirement Proposal In Your
Best Interest?

Basic Facts About the Governor’s Retirement Proposal:

The proposal would affect teachers and all public employees, whether they are in CalPERS or CalSTRS, hired after July 1, 2007.
Teachers and other public employees do not earn Social Security. STRS and PERS are the equivalent of Social Security for public employees.
It would replace the current defined benefit plan with a 401(k)-style retirement plan. Employees would not be guaranteed a set level of monthly retirement benefits as they are now.
It does not force current PERS or STRS members into the defined contribution plan, but creates a two-tiered retirement system, giving different benefits to existing workers and those hired after July 1, 2007.
In addition, the state would stop paying its 2% share of total CalSTRS payroll (about $469 million) each year and would shift those costs to local school districts.

Talking Points:

CTA opposes any retirement system changes that make it harder to attract and keep quality teachers in our classrooms. The Governor’s proposal does just that.
A recent report by the Center for the Future of Teaching and Learning estimates that California will need to hire an additional 100,000 teachers over the next 10 years. The Governor’s proposal is a step in the wrong direction and will make it much more difficult to attract the highly qualified professionals our students deserve and that the Governor claims he wants in our classrooms.

The Governor’s plan is the same as President Bush’s plan to privatize social security. Like Bush’s plan it is a risky idea that will cost more money, cut benefits, and undermine the retirement pensions of those who are currently employed.
The Governor’s plan could cause additional cuts to public school classrooms, by shifting costs currently paid by the state to local school districts.
The Governor’s proposal would put the retirement of future teachers at risk, leaving it up to employees to invest for their future, rather than providing the protections and expertise of the CalSTRS managers.

The only people who benefit under the Governor’s retirement system are his big business pals on Wall Street – not teachers, nurses and firefighters.
The Governor’s proposed retirement system will not save the state or local governments any money and could actually cost taxpayers more than the current system through increased administrative and setup costs. It could also increase existing pension plan costs, because without new employees paying into the current system, the existing plan will have fewer assets to invest, driving up costs.

• Rising pension costs were overwhelmingly caused by the stock market crash – not benefit increases. In fact, the state of California still owes CalSTRS $500 million it took from the retirement fund to help balance the budget two years ago.

• CTA has joined with firefighters, health care workers and state employees in a broad coalition to fight this ill-conceived proposal.

Election Results
Elementary Director
Name Votes

Dorann Poynter 140
Alicia Diaz* 313

* Indicates Elected

NEA RA Delegates
Local

Christopher Kakimi
Susan Jauregui
Brian Stevens
Dorothy Chu
Frank van der Baan
Phyllis Butland
Alicia Diaz
Kathy Reyes
Christina Ashley
Alma Orta

All were elected. No election was held because there were the same number of candidates as seats available.

Bargaining Update

Bargaining Chairperson Terry SalasOrtiz (CCE) continues negotiations on wages. Her team includes Elizabeth Gasca (RPE), Walt Lowery (MAI), Dolores Rego (BGH), and Brian Stevens (LMI).