California's Pension Battle Gets Ugly

Sacramento - The controversy over pensions for California's public employees got aired out in Sacramento this week during a panel discussion that at times got testy.

FOX 11's John Schwada looks at two different aspects of the pension fight in the video reports.

Story Script - League of Cities Panel:

One side waved a list of cities that sweetened pensions for their public employees even as the economy was tanking, but a union official at the same California League of Cities debate attacked the same report, calling its proposed pension reforms "pretty much laughable."

To sort it out further, we talked to Little Hoover Commissioner Loren Kaye, who insists California must be bold in tackling pension reform.

John Schwada
"You're also saying you want to go after the pensions of current employees?"

Loren Kaye
"Well, that's right."

Kaye applauds San Jose's mayor, who is now pushing a ballot measure that would do just that... with limits.

Loren Kaye
"We're not talking about rolling back pensions that have already been earned. We're not talking about touching the pensions of retired people."

Still, whacking current employees pension plans and changing how they earn future benefits would be bold and difficult.

Loren Kaye
"It's a very tough road. They're trying it in San Jose and it's a good effort."

As for the unions, if there's going to be pension reform, they want it to done by the state legislature and not through a ballot measure voted on by the public at large.

Ron Cottingham, Police Union Official
"We fear an initiative going to the public because we know that the way the press has dealt with this and the way the media has slanted this that an initiative will probably pass."

Other union reps at the League of California Cities panel discussion are ready for an initiative battle.

Do they believe they can defeat it?

Terry Brennand, SEUI Official
"Absolutely. We've done it before and we can again. 80% of all retirees are retiring at less than $30,000 a year. Anybody who tries something going forward to take that down to poverty level, we're going to fight."

Story Script - Felony Pension Bill:

Sen. Tony Strickland, R-Thousand Oaks
"This is a no-brainer. In fact, Jerry Brown put it out as part of his pension reform."

State Senator Tony Strickland says his proposal to cut off pension benefits to public officials convicted of stealing public funds should have been a gimme.

Sen. Tony Strickland, R-Thousand Oaks
"Robert Rizzo is the perfect example."

When Strickland learned that Robert Rizzo, the notorious boss of the City of Bell, could get millions of dollars in pensions even if he's convicted and imprisoned for stealing public monies, Strickland blew his stack.

Sen. Tony Strickland, R-Thousand Oaks
"That's just wrong. That's why I brought this bill forward. If he gets convicted, he could get up to $26 million. Just one individual. While in prison. While in prison!"

Nevertheless, three Senate Democrats took a walk, abstained from voting on Strickland's bill, and that killed it.

Along with the opposition from more than a dozen public employee unions, including SEIU, AFSCME, cops and firefighters.

Two Los Angeles area lawmakers, including Senator Alex Padilla, were instrumental in seeing that the bill went nowhere did not have to talk to explain to us why they voted the way they did.

Senator Gloria Negrete-McLeod's office gave us a wirtten statement claiming it would be unfair for an innocent wife to lose benefits because her husband was convicted of wrong-doing.

Then we asked CalPERS, the state's giant pension system administrator, whether its board had taken a position on Strickland's bill.

Brad Pacheco, CalPERS
"At this point, we don't have one because we haven't been provided an analysis. We didn't ask the board to take a position."

How many CalPERS pensioners are now in prison getting their pension checks after stealing public funds?

The giant agency doesn't know because it doesn't have to know now. it just mails them to whoever, whereever.