Imperial Valley News

Sacramento, California - Governor Arnold Schwarzenegger today issued the following statement on the California Public Employees’ Retirement System (CalPERS) board considering a proposal to defer government contributions:

“This week, CalPERS is considering what they are calling a ‘smoothing’ proposal designed to provide short-term cash-flow relief to local and state governments, but really it’s a ‘pass the buck to our kids’ idea.

“By deferring pension contributions, CalPERS would not only be gambling that its investment earnings in this economy would grow faster than its pension obligations but it would also be using our kids’ money to do so because they will be the ones stuck footing the bill.

“Instead of deferring contributions based on risky assumptions, CalPERS should focus on meeting its obligations. Our pension system needs reform, and without meaningful and sustainable pension reforms that reduce future costs, the state should decline to participate in any effort to shift more costs to our children.”

The Governor’s special advisor for jobs and economic growth, David Crane, wrote a column on this issue that ran today in Fox & Hounds.