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A court ruling on Tuesday striking down job protections for teachers in California deals a sharp blow to unions... Read more: 

We can't call it a tidal wave because the numbers involved are still relatively small, but there are certainly more local affiliates of the National Education via Michigan, Iowa Locals Leave...

Teachers unions face moment of...

CUHS teachers association leave union | teachers, association, union - Corning...

Three Small Locals Oust California Teachers...

Teachers Vote Out CTA, Opt For Independent Model Sacramento, CA – In the past few weeks, three different teachers’ groups had the opportunity to vote on whether to continue to be represented by the California...

It appears that Governor Jerry Brown’s recently unveiled 12-Point Public Employee Pension Reform Plan is gaining traction over a wide swath of California voters and not just fiscal conservatives. Periodically the Sacramento Bee publishes an interesting debate between two writers titled “Head to...

September 6, 2012 Dear Colleague, I recently met with Rafael Ruano, a lawyer, who has a very interesting proposition for the teachers of California. His message in its entirety is pasted in below. If you have any questions, please don’t hesitate to...

CTA spent over $200 million on politics in the decade prior to 2010. What should be an outrage to CTA members is that it was ONLY $200 million! That is a little more than 10% of their huge budget, where is the other 90% going?Of course, it goes to a bloated CTA and NEA organization...

 A recently obtained a list of CTA contributions from its Association for Better Citizenship political action committee shows that a proportionally great deal of it  is going to San Bernadino and San Fransisco. 

How Can You Provide Lawyers Instead of Shop Stewards?

CTA takes a huge amount of dues yet has created a representation model in which your colleagues, as part of a largely volunteer set of officers, bargaining team members, and shop stewards, do the vast majority of the work for your members. The money you send to CTA goes to pay for a huge, and ever growing, administrative bureaucracy, that apparently leaves no money for professional negotiators and lawyers to handle your disciplinary matters, contract enforcement, and bargaining.  

 Our Better Model is predicated on your independent teacher association having the freedom to hire, and thus fire, the labor and legal professionals that provide services to them. We do this every day and know what it costs to represent public employees, including teachers. The cost is far less than what CTA charges you because we don’t have the overhead and administrative costs they do, nor the political lobbying expenses they incur. Any extra money that you save (at least 50% of your current dues and maybe as much as 80%) can be returned to the teachers or spent on the services and issue that your local association decides is most important to you.

 

How would you be able to cut teacher’s dues so drastically?

Currently, as a member of CTA, you must pay whatever CTA and NEA set as their dues. Because CTA is essentially a monopoly when it comes to representing public school teachers in California, the dues have predictably risen higher and higher – without any noticeable increase in services to the members.

 The CIT Model returns to the teachers of each district the right to set their own dues.

 An independent teachers’ association can set dues comfortably at half of what they are currently paying under the CTA model and still get professional representation in the bargaining process and to cover all contract enforcement and individual disciplinary matters. The professional services can be provided by a law firm such as Goyette & Associates that specializes in representing California public employee associations. These services can be provided to associations with memberships that range from a few dozen teachers to several thousand.

 The cost of hiring professionals to handle the core services that the association needs is about 20-40% of the total dues currently being paid. That leaves 10-30% of current dues for the association to use for general administrative costs, other member services and local political action – or whatever the association chooses to do. That still leaves 50% of current dues to be returned to the individual teachers – call it the CTA dividend.

 Don’t believe that a labor law firm actually costs less than CTA? It’s true, by a lot! Ask around. Police officers, firefighters, and other public employees pay as much as 80% less than teachers and routinely receive professional labor and legal representation that far outweighs what CTA provides.

Decertification From a Teacher's Union Sounds Complicated. How Does It Work?

The decertification process is simple and can easily be accomplished by any group of teachers who are interested in making it happen. Here are the basic steps:

The First Step: File a Petition
The First step is to file a showing of interest petition that shows at least 30% of your bargaining unit wants to have a decertification election. The petition itself is not complicated and any number of forms will work. Here are 2 examples of petitions that work just fine. * link pending
The timing of the petition is important. The petition must be filed in a twenty-nine day window that is 90 to 120 days prior to the expiration of your MOU. For example, if your CBA (otherwise known as your MOU or Memorandum on Understanding) expires on June 30th, the petition must be filed sometime during the month of March.

The Second Step: The Election
Once the petition has been filed, PERB will review it and contact you regarding scheduling and election. PERB will conduct a ballot election where a simple majority determines the outcome the ballot typically includes the names of both the incumbent union and the new petitioning employee organization.

The Third Step: You’re Up and Running
Since the majority of the teachers in your Association voted to be independent, you are now up and running. Your G&A support team and their lawyers will be there to help you through every step along the way.

If I want to know to know more about the decertification process, where do I look?
Good Question. The whole decertification process is determined by State Law. The Educational Employees Relations Act (EERA) governs employee relations within the public school systems of the State of California. The Public Employment Relations Board (PERB) administers and enforces the EERA including all decertification elections. The EERA is contained in Government Code Section 3544, et al. The PERB website also has a lot of useful information. That website is http://www.perb.ca.gov

How will we know if we are doing it right?
We will be here to help you and advise you through every step of the process. We have successfully decertified dozens of units from large Unions. We won’t leave you to do this on your own. Call us at 888-993-1600 now, to learn how to make a huge difference to the teachers in your district or email us here. But Hurry!… if your contract expires this year or next- timing is critical.

GOVERNOR BROWN’S 12-POINT PENSION REFORM PLAN GAINING TRACTION

It appears that Governor Jerry Brown’s recently unveiled 12-Point Public Employee Pension Reform Plan is gaining traction over a wide swath of California voters and not just fiscal conservatives. Periodically the Sacramento Bee publishes an interesting debate between two writers titled “Head to Head.” Head to Head pits conservative Ben Boychuk and liberal Pia Lopez on a wide range of political issues. The November 2, 2011-piece caught my eye. The question debated between Mr. Boychuk and Ms. Lopez was: “Does Brown’s pension reform plan go far enough in curbing costs?” Not surprisingly, Mr. Boychuk says it does not but give Governor Brown credit for a good start. I was most surprised, in fact shocked, that Ms. Lopez supported Governor Brown’s pension reform plan. Ms. Lopez sets forth a thoughtful analysis of the Brown Plan and concludes that while it does go far enough it is in fact a good idea.

 

Ms. Lopez’s opinions are consistent with a recent LA Times poll which found that over 75% of State Democrats supported significant public employee pension reform. California’s Public Sector employee unions should note the direction of public opinion and plan accordingly. While there seems to be wide public support for the Brown Plan, it still has to pass the Democrat-controlled Legislature before it ever reaches voters as a ballot initiative–a total longshot. Notwithstanding, the Brown Plan is tame compared to other pension reform plans that may show up on next year’s ballot such as a 100% defined contribution plan and mandatory freezes on all pay levels tackling the problem of the massive underfunding of existing pension obligations. Recently, a Little Hoover Commission report found that the ten largest pension plans in California had a collective 240 billion shortfall over the next 30 years. Critics argue that the Brown Plan does not come remotely close to meeting this shortfall.

 

For today’s California public sector employee union it is imperative that they keep their enemies close and their friends closer.

TEACHERS’ PENSION FUND BILLIONS SHORT

The biggest pension fund for California teachers, CalSTRS, is experiencing a massive funding gap and the California Governmental Accounting Standards Board (GASB) is proposing new accounting rules for calculating the fund’s liabilities that will make those numbers even worse. CalSTRS currently has a funding gap of 56 billion dollars–the difference between money it expects to have compared with what it expects to have to pay out in benefits. If the new GASB accounting rules take effect that funding gap will be almost tripled to over 150 billion dollars.

Either way CalSTRS needs more money from taxpayers, teachers or both to avoid running out of money that pays out these benefits over the next 30 years. This issue, and many like it have created a hot button political debate pitting conservatives and conservative groups, who say the current public pension systems in California are unsustainable, against unions, that, while making some concessions, have resisted major structural changes. Unlike CalPERS, who can simply demand more money from their participants (cites, counties, and special districts) CalSTRS needs a legislative solution. In other words, CalStRS needs lawmakers to find a way to balance the books.

In many ways, CalSTRS’ current problem comes down to an accounting question: How should pension funds measure their long-term liabilities? Right now, pension funds base their calculation on a forecast that their investments will earn 7.75% a year. However, because public pensions are guaranteed by the taxpayer, many argue including GASB, that the assumed investment return should be much lower comparable to safe investments like U.S. Treasury Bills. If the investment earning assumption decreases the pension fund simply needs more cash, a lot more. It is fair to assume the pension fund investments will earn at least 7.75% per year? Maybe, maybe not. Look at your own personal investments over the years for guidance. Certainly there have been years when average investment earnings have exceeded 7.75% (dot com boom, real estate boom, etc.) Of course there have been years when investment earnings have been far less than 7.75% or even in the negative. What the question really is: How much tolerance for risk does or should the California taxpayer have.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CalPERS CEO Issues Statement on Governor's Pension Reform Proposal

 

CalPERS CEO Issues Statement on Governor’s Pension Reform Proposal

SACRAMENTO, CA – Anne Stausboll, Chief Executive Officer of the California Public Employees’ Retirement System (CalPERS), today issued the following statement in response to Governor Edmund G. Brown, Jr.’s 12-point pension plan:

“CalPERS is closely involved in the pension policy dialogue that will affect our employers and members in the State, schools and local government. We encourage discussion between all parties to ensure that public employee retirement plans are sustainable, secure and cost-effective.

CalPERS pensions have provided retirement security for California’s hard-working State and local public employees for nearly 80 years. Retirees with a dependable income contribute to stimulating our economy. In 2010, CalPERS $12 billion in monthly pension checks resulted in more than $26 billion in economic activity throughout the State, including $14 billion in business revenue and more than 93,000 jobs.

In today’s fragile economy, many employers are facing budgetary challenges and have already made changes to their pension systems. We have observed more than 175 cities, counties and local governments negotiate changes to lower near-term and future costs by increasing employee contributions, modifying benefits for new hires, or both. Changes in the State plan that have already occurred will result in significant savings of about $13 billion over the next 30 years. Some of the Governor’s proposals may require constitutional changes, while others may require collective bargaining.

At CalPERS, we believe that defined benefit plans are an important cornerstone to adequate and secure retirement. Pension change dialogue should focus on the critical policy issue of how to provide adequate and secure retirement income for public workers in a cost-effective way, while honoring vested rights for existing employees. We are committed to serving as an honest broker of information and an expert in pension administration as all parties work together on pension solutions. As the pension policy discussion progresses through the Legislative process, CalPERS can assist with information on costs and potential savings over time to facilitate lawmakers in a fully informed discussion.

CalPERS provides retirement benefits to 1.6 million State, public school, and local public agency employees, retirees, and their families, and health benefits to more than 1.3 million members.

CalPERS Pension Quick Facts (as of June 30, 2011)

Average monthly service retirement allowance for all retirees: $2,331
Average monthly service retirement allowance Fiscal year 2010-11 retirees: $3,065
Average years of service for all retirees: 20.3
Average years of service for Fiscal Year 2010-11 retirees: 21.2
Average monthly service retirement for school miscellaneous members: $1,250
Average years of service for school retirees: 16.9
Average monthly service retirement for State members: $2,597
Average years of service for State retirees: 23.2
74 percent
of all service retirees receive $3,000 a month or less.
86 percent of CalPERS retirees, survivors, and beneficiaries live in California.
$12 billion in pension payments in 2010 resulted in $26 billion of economic activity in California and 93,651 jobs.
$22 billion of CalPERS assets are invested in California.

CalSTRS Response To Governor Brown's Pension Reform

CalSTRS Response: http://www.calstrs.com/Newsroom/whats_new/pension_reform_response.aspx CalSTRS appreciates that Governor Brown has taken a very important step in addressing the critical and complex issues facing the state’s public pension systems. We look forward to receiving more detail on the proposal and having the opportunity to review it in depth. The most important reform CalSTRS needs is a plan of action to address its long-term funding shortfall, which only the Legislature and Governor have the authority to implement. We will continue to work with the Governor, Legislature and our stakeholders to develop a plan that includes contribution increases that are gradual, predictable and fair to all parties. It’s important to note that some provisions of the Governor’s proposal, such as board governance and health care costs, do not apply to CalSTRS. Moreover, since CalSTRS contribution rates are set in statute by the Legislature, our contribution structure is extremely predictable and has not experienced pension “holidays.” CalSTRS members contribute 8 percent of salary to fund their pension, while their employers contribute 8.25 percent. These rates haven’t changed since 1972 and 1990, respectively. The State’s contribution of 2.541 percent was reduced from 4.607 in 1998. CalSTRS administers a hybrid pension system consisting of a mandatory traditional defined benefit pension and a cash balance plan which is similar to a 401(k). CalSTRS also offers its members a voluntary defined contribution supplemental savings program such as 457(b) and 403(b) plans. A look at the average CalSTRS member who retired in 2009-10 further illustrates the unique aspects of CalSTRS: • Retired at age 62 • Performed 27 years of service • Earned a pension that replaces nearly 60 percent of salary • Receives approximately $49,000 in earned benefits annually • Does not earn Social Security benefits for their service • Does not receive employer-paid health care benefits after age 65

Governor Browns Pension Reform Plan Proposes Big Changes

Governor Brown’s 12 point pension reform plan that was released today outlines big changes to current and future public employees, including California state employees as well as employees of local governments, schools and special districts. The Governor’s plan, while probably outraging institutional Unions, probably does not go far enough for conservatives and conservative activist groups. The Governor’s pension reform plan cannot be implemented, in most cases, without bargaining with the employees and employee organizations it affects. One thing is for sure though, the employee associations better bring it’s “A” game to the bargaining table to discuss the Governor’s plan. With the right approach, many of the employer needs outlined in the pension reform plan can be accommodated while preserving the fundamental elements of California public employee pensions. The California public employee pension system has been the cornerstone of public service for over 2 generations. That system, which has supported probably the finest public sector workforce in the country, needs to be preserved the common sense way.

Main Points of Governor Brown’s Pension Reform Plan

Main Points of Governor Brown’s Pension Reform Plan

 1. Equal Sharing of Pension Costs: All Employees and Employers

2. “Hybrid” Risk-Sharing Pension Plan: New Employees

3. Increase Retirement Ages: New Employees

4. Require Three-Year Final Compensation to Stop Spiking: New Employees

 5. Calculate Benefits Based on Regular, Recurring Pay to Stop Spiking: New Employees

6. Limit Post-Retirement Employment: All Employees

 7. Felons Forfeit Pension Benefits: All Employees

 8. Prohibit Retroactive Pension Increases: All Employees

9. Prohibit Pension Holidays: All Employees and Employers

10. Prohibit Purchases of Service Credit: All Employees

11. Increase Pension Board Independence and Expertise

12. Reduce Retiree Health Care Costs:

State Employees Savings will be in the neighborhood of $900 million per year to the State.

Chico CTP Unit Decertifies SEIU and Recognizes Chico Employees Association, represented by Goyette, by a vote of 54 to 2

In a landslide, the City of Chico Classified, Technical and Professional employee unit voted to get rid of SEIU and recognize the newly formed Chico Employees Association as their new representative. 54 to 2 (in a unit with a total size of 67) was the election result, counted on September 29 by the City Clerk Debbie Presson.

This was the second time in the past couple of years that this unit tried to decertify from SEIU and they did so resoundingly. The Chico City Council is poised to formally recognize CEA on Tuesday, October 4.

“This unit is filled with hard working, talented and dedicated employees of the City of Chico,” says Rafael Ruano, CAO, Goyette and Associates, who has been guiding CEA on this process. “We are looking forward to a long term relationship with CEA to help them work with the City of Chico to improve not only working conditions but also the services provided to the citizenry. “