Will work with stakeholders to achieve real pension reform in future legislation

Sacramento, CA—Assemblymember Buchanan issued the following statement today following her action on Friday to remove her support as principle co-author of Assembly Bill 1987 (Ma).

“Earlier this year I agreed to co-author of AB1987, a bill to stop the egregious pension spiking practice that has occurred on a regular basis in many local pension plans.  Examples have been reported widely of local elected officials and pension boards approving final employee compensation that was inflated with the sole purpose of giving employees retirement pay that far exceeded their active pay.  This practice is unethical, costs taxpayers millions of dollars, and results in future cuts to essential services.

I worked with interested parties for months on language that would address all concerns, stop pension spiking, and hold local agencies and pension boards accountable for administering the new policy.  Unfortunately, the legislation, as currently written, falls short of these goals.

For this reason, I have removed my name as a principal co-author.  I remain committed to stopping pension spiking and will continue to work on legislation to do so.  I also urge local agencies to take independent action to stop this and other practices that result in inappropriate compensation.  It is imperative to restoring confidence in government and maintaining critical services in our communities.”

Contact: Michelle Henry (916) 319-2015