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California state employees take a stand for secure retirements...Thousands of SEIU Local 1000 members join sith other SEIU locals to tell Governor,
'Hands Off Our Nest Eggs'

SACRAMENTO, Calif., March 23 /PRNewswire/ -- Thousands of members of SEIU Local 1000 wrote to Gov. Schwarzenegger today to tell him what they plan to do with their modest retirements, which could be in jeopardy if his proposals to move new workers to risky 401(k)-style retirement plans succeed.

State employees joined public employees in other SEIU locals for the statewide "Hands Off Our Nest Egg" event. The event featured workers writing personal notes about their retirement "nest eggs," which will be stuffed inside colorful Easter eggs and delivered to the governor as well as legislators voting next month on ACA 5, a Schwarzenegger-backed bill by Sen. Keith Richman (R-Granada Hills) to dismantle public employees' current secure retirement system.

"I wrote that I hope to retire somewhere affordable in California, but with these attacks there may not be any benefits left by the time I retire," said Donna Debaecke, an Unemployment Insurance Appeals Board management services technician participating at a San Francisco worksite event, who noted that the average state pension is only about $1,600 according to CalPERS.

State employees like Debaecke worry that the governor's attacks on public employees' pensions will have detrimental effects on current employees and retirees, new workers, and taxpayers, including:

-- Outlawing stable defined-benefit plans and mandating risky 401(k)-style accounts for all new public employees, including positions not covered by Social Security. The governor's proposals ignore the facts that those in riskier defined-contribution plans yield lower returns than stable pension plans, according to the Dalbar and Watson Wyatt financial consulting firms, and that retirees with pensions have income for life, while individual-risk accounts can run out long before death. Plus the new individual-risk accounts would not allow for inflation adjustments or death and disability benefits, which are included in the current system.

-- Jeopardizing secure retirements for everyone in public retirement systems including current retirees and employees. The governor's proposals would mean fewer employees contributing to the current plan, a smaller pool of benefits and weakened CalPERS investment strength.

-- Costing taxpayers more on many levels. In addition to millions in start-up costs, the governor's proposals would require running two pension systems with the individual-risk accounts costing more to manage: the average cost of administering the current plan is 0.18 percent of assets, while administering individual-risk accounts can cost as much as 2 percent of assets, according to CalPERS. The individual-risk switch would also cost taxpayers a quality public workforce: with many public-sector jobs paying less than private industry, a secure pension plan helps recruit and retain qualified workers to public service.

"Higher costs to taxpayers, fewer employees to provide vital services ... Gov. Schwarzenegger's proposals don't make sense, unless he's just trying to get more business for his Wall Street financial friends," said SEIU Local 1000 President Jim Hard, an Employment Development Department employment program representative. "Californians need improved public services, not attacks on those who provide them."

SEIU Local 1000 represents 89,000 rank-and-file state employees.