Here is the story from NY Times:
California's $300 billion pension system for its public employees is the largest state system in the nation and as early as this summer, Californians will be asked to vote on the proposed changes.
The change that Mr. Schwarzenegger has endorsed is supported by a number of Republican state lawmakers and is driven by the same ideology behind the effort to transform Social Security.
The outcome of the vote in California, pension experts and political analysts say, will not only have an impact on the state pension system, but will also provide an important marker of public opinion on proposed changes to Social Security.
Mr. Schwarzenegger, in his State of the State address earlier this month, described California's pension system as "another government program out of control," careering toward fiscal ruin. He cited the state's obligation to inject $2.6 billion into the system this year to keep it actuarially sound, compared with $160 million four years ago.
The impetus for Mr. Schwarzenegger's plan comes from some of the same antitax advocates, freemarket enthusiasts and Wall Street interests pushing President Bush's Social Security initiative. Grover Norquist, the president of Americans for Tax Reform, a Washington lobbying and research group, has endorsed the plan.The Howard Jarvis Taxpayers Association, in California, is sponsoring a similar measure.
The Jarvis group plans to put its proposal on a statewide ballot if the State Legislature does not act on the governor's plan.
Read more.
Sounds like Arnold was trying to privitize CalPERS for control. Here is what is happening with CalPERS in a Dec. 16 article:
Fresno Bee:
The CalPERS board today approved a modest increase in the state's annual contribution to the pension fund, setting aside protests from Gov. Arnold Schwarzenegger's administration.
Schwarzenegger wants the state's payment to CalPERS to jump by at least $1 billion next year, to begin paying down the fund's big investment losses. But because the CalPERS board chose to raise the rate by only $200 million, Schwarzenegger will now have to hash the issue out with the Legislature, where the Democrats appear reluctant to go along with the higher payment.
Schwarzenegger's plan would put additional strain on a budget that's already estimated to be $20.7 billion in the red.
Some labor leaders say Schwarzenegger wants the higher payment to dramatize his argument that pension costs are unaffordable - and benefits for newly hired workers should be reduced. Schwarzenegger's aides say they merely think the bills should be paid as soon as possible.
If CalPERS had gone along with Schwarzenegger's wishes, the Legislature would be powerless to block the $1 billion increase; CalPERS has sole authority to raise its rates. But now the Legislature can block Schwarzenegger's plan.
"They're basically telling (Schwarzenegger), 'You can go out on the plank by yourself,'" said Marcia Fritz, who is leading an independent initiative to reduce pension benefits for new hires. Her group hopes to place the initiative, which is similar to the governor's plan, on next November's ballot.
In addition, CalPERS sued Arnold back in August of this year because the Guv ordered CalPERS employees to furlough. What was the decision? Judge now went in favor of Arnold according to Dec. 18, 2009 article.
Here is the story:
A San Francisco judge has ruled that Gov. Arnold Schwarzenegger can furlough employees at the state's public pension fund. Superior Court Judge Charlotte Woolard affirmed Friday that the governor has the authority to furlough workers at the California Public Employees' Retirement System.
CalPERS had sought an exemption because its staff is paid through special funds, not from the state's general fund.
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