About the Little Hoover Commission
The Little Hoover Commission, formally known as the Milton Marks "Little Hoover" Commission on California State Government Organization and Economy, is an independent state oversight agency that was created in 1962. The Commission's mission is to investigate state government operations and - through reports, recommendations and legislative proposals - promote efficiency, economy and improved service. The Commission's creation and membership, purpose and duties and powers are enumerated in statute. The following reports have been issued by the Commission:
PUBLIC PENSIONS FOR RETIREMENT SECURITY (February 2011):http://www.lhc.ca.gov/studies/204/report204.html
A LONG-TERM STRATEGY FOR LONG-TERM CARE (April 2011): http://www.lhc.ca.gov/studies/205/report205.html
RPEA also expresses those reservations as reflected in the CalPERS response to the Little Hoover Commission as linked below.
http://www.calpersresponds.com/pension_security.php
Scathing report alleges corruption at CalPERS
In a scathing report, a former chief executive of the California public employee pension fund was accused of pressuring subordinates to invest billions of dollars of pension money with politically connected firms.
A 17-month investigation also found that Federico Buenrostro Jr. along with former pension fund board members Charles Valdes and Kurato Shimada strong-armed a benefits firm to pay more than $4 million in fees to consultant Alfred J.R. Villalobos, who later hired Buenrostro.
The report, prepared for the California Public Employees' Retirement System by Washington law firm Steptoe & Johnson, comes amid widening attacks on public employee pension funds in California, Wisconsin, Iowa and other states for providing lavish benefits that cash-strapped governments can no longer afford.
The findings of insider dealings at CalPERS could provide fresh ammunition to Republican lawmakers here who want Democratic Gov. Jerry Brown to convert traditional pensions with guaranteed payments for life into 401(k)-type plans that rely heavily on employees' own contributions.
"Fixing California's pension problem is difficult enough without the stench of corruption and collusion that saps public confidence and gives taxpayers a reason to withhold support," said Dan Pellissier, president of Californians for Pension Reform, a group that is pushing a 2012 ballot initiative that would diminish state employee pension benefits.
DOCUMENT: Read the full report, annotated by Times staff
Shimada, Buenrostro, Valdes and Villalobos either declined to comment or did not return calls.
Buenrostro served as CalPERS chief executive for six years, leaving in August 2008. The day after quitting, he went to work for Villalobos — a former CalPERS board member and deputy Los Angeles mayor who acted as an agent for investment firms seeking CalPERS money. The report said Villalobos hired Buenrostro with a $300,000 annual salary and gave him a Lake Tahoe condominium.
While at CalPERS, Buenrostro repeatedly "inserted himself in the investment process in a manner inconsistent with prior practice at CalPERS, pressing its investment staff to pursue particular investments without evident regard for their financial merits," the report said.
IRS Announces 2012 Standard Mileage Rates, Most Rates Are the Same as in July
WASHINGTON — The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 55.5 cents per mile for business miles driven
- 23 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.
Notice 2012-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
Read original article here
What is happening with PPPA?
There has been nothing published, so far, about the about the formula for the purchasing power protection allowance (PPPA) for 2011. This is because the legislature passed SB 1139 last session to change the date of the allowance from January 1 to coincide with the coast of living adjustment (COLA) on May 1. CalPERS could not be ready to make this change for 2011, so the bill was amended to have it become effective on May 1, 2012. There was no mention of what was to be done with the PPPA for 2011. We have received the following message form Mary Lynn Fisher of CalPERS:
"For the calendar year of 2010, the actuaries estimated inflation to be approximately 1.6%. This percentage was provided in November 2010 and was utilized for PPPA calculation purposes so the benefit can be paid on the 1/1/11 warrant. No retirement years have been added so retirees with state and school service who retired in 1981 or earlier and public agency retirees with 1986 or earlier retirement dates will still be receiving PPPA.
We have approximately 50,000 payees who are going to receive a modest PPPA increase on the 1/1/11 warrant. Because the actuaries have to estimate inflation, we essentially paid a little too much in 2009, took away a little too much in 2010, will give some back in 2011 even though the CPI is less than 2% and most members received their 2% COLA's in May 2010. Less than 90 members will see a decrease and these members had employment with public agencies that contract for 3%, 4%, or 5% cost-of-living adjustments."
Click here to view the 2011 PPPA Factors sheet.
RPEA Members:
RPEA apologizes for the duplicate e-mail messages sent on July 21, 2011 regarding the CalPERS Candidate Forum. There was an error on our e-mail provider's site that created an auto-response loop. The [email protected] mailbox was set to send an auto-response letting the person who sent the message know it was received. However, during an e-mail provider system upgrade our e-mail list was changed from “reply to sender” to “reply to list.” This caused a continuous loop where the [email protected] mailbox received its own auto-response message and replied to it with another auto-response. Every time an auto-response was sent it went to the entire list. We stopped the loop as soon as we became aware of it and attempted to delete as many messages as possible before they were sent. However, thousands went out before we were able to do so. Some members received over 1,500 e-mail messages, others less. Unfortunately, there was nothing more we could do once the messages left our provider's server.
We have immediately switched to a new mass e-mail messaging service. This new provider gives us greater control over the message settings and better ensures that this will not happen in the future.
We apologize for any inconvenience and would like to assure you that RPEA has taken immediate steps to correct the problem.
