RPEA LAUDS CALPERS AS LOST BENEFITS ARE PARTIALLY RESTORED TO EMPLOYEES

RPEA President Al Darby Advocated Strongly for Action

 

SACRAMENTO—When the East San Gabriel Valley Human Resources Consortium (ESGVHRC)—also known as LA Works—disbanded and left its retirees in limbo, ultimately leading to a 63% reduction in retiree benefits, RPEA immediately began working on a solution to solve the problem. 

RPEA actively supported and helped pass AB 1912 prohibiting member agencies of a Joint Powers Authority (JPA) from disclaiming the retirement liability if the JPA's agreement with CalPERS is terminated, or the JPA dissolves or ceases operations.

While AB 1912 addresses future JPA dissolutions, RPEA continues to be actively engaged with CalPERS in trying to get the benefit reductions fully restored for the retirees of the ESGVHRC.

It has just been announced by CalPERS that—as a result of a decrease in liabilities of the Miscellaneous Plan of the East San Gabriel Valley Human Services Consortium—they have lowered the original reduction to the monthly benefit amount from 63.15% to 58.12%.

Al Darby, President of RPEA, praised the actions by CalPERS. He stated, “RPEA welcomes the increase to the checks of the retirees of the ESGVHRC and we will continue to work with CalPERS and the Legislature to fully restore the benefits that were so drastically cut as a result of the dissolution of the JPA.”

CalPERS will be sending out letters to members this week notifying them of the recalculation of their retirement benefits. Increases will be effective with the October 1, 2018 retirement check.

Since the beginning, RPEA has been actively involved in enhancing the lives of retirees. We are the only statewide association representing all PERS retirees. RPEA works tirelessly to safeguard and promote the retiree benefits of California’s public employees. For more information regarding retiree pensions and health benefits or to learn more about the Retired Public Employees’ Association of California, check out our website www.rpea.com.

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Former San Gabriel Valley agency employees who saw their retirements slashed get tiny bit restored

https://www.sgvtribune.com/wp-content/uploads/2018/09/calpers-benefits-slashed-1.jpg?w=526

FILE PHOTO. Christell Standridge, 85, whose CalPERS pension is being cut 63%, says on March 15, 2017 that she can’t sleep at night knowing her husband Herbert, who died 20 years ago, worked to leave her the pension he earned while working for the now-defunct LA Works. Standridge and her two daughters share living expenses at their Covina Heights home. (Photo by Sarah Reingewirtz, Pasadena Star-News/SCNG)

 

By CHRISTOPHER YEE | [email protected] | San Gabriel Valley Tribune

PUBLISHED: September 20, 2018 at 6:04 pm | UPDATED: September 20, 2018 at 6:05 pm

Former employees of a public agency formed by West Covina, Azusa, Glendora and Covina—who lost a significant portion of their retirement benefits cut when the agency folded—will have a small portion of those benefits restored.

More than 170 former employees of the East San Gabriel Valley Human Services Consortium, better known as LA Works, received notice in 2017 that their California Public Employee Retirement System pension benefits would be slashed because the agency, which shuttered in 2014, had stopped making payments.

 

The former employees’ monthly benefit payments were originally cut 63.15 percent. However, CalPERS recently restored some of those payments, lowering the percentage cut to 58.12 percent as a result of recently enacted state legislation that prohibits members of joint powers authorities, like LA Works, from disregarding their retirement obligations when the agency’s agreement with CalPERS is terminated, if the agency dissolves or ceases operations.

 

Al Darby, president of the Retired Public Employees’ Association of California, said the restoration should help the 60-plus former LA Works employees who were vested in CalPERS who may already be retired.

“They were told they would get CalPERS pensions for working those jobs, but the cities stiffed them,” Darby said. “This doesn’t make up for it, but it should help.”

Darby said the former LA Works employees intend to keep fighting for further restoration of their benefits and that they may seek litigation against the four cities.

CalPERS officials said they were forced to declare the consortium in default and reduce its retirees’ pensions because neither the consortium nor the four cities that created it would pay.