California teachers unions plan to vote on pension withdrawal
The California Teachers Association (CTA) is expected to vote tomorrow on a plan to withdraw from its pension plan.
The CTA has a long-standing agreement with the State of California that gives it the right to withdraw if it cannot meet state requirements for the payment of its annual pension contribution.
In a letter to members this morning, the CTA’s president and CEO, Bob Koppel, said the CTAs decision to leave the pension plan was based on its concerns about the state’s plan.
Koppel said the association had been “unable to secure a viable option that was fair to the CTI, and it has been unable to meet its fiduciary obligations to the State”.
“We have been disappointed by the lack of transparency and clarity of the proposed withdrawal, which has led to widespread uncertainty about the long-term viability of the CTIA and its members,” Koppels letter said.
“The CTI has been able to remain focused on our primary mission of educating California children and educating teachers.”CTA President and CEO Bob Kompel says the CTAA is planning to vote this morning on a proposal to withdraw the CTUA pension from the state pension plan, which is due to be paid in 2023.
He said the decision was made after CTAs trustees asked to withdraw its pension.
“The proposed withdrawal of the state and federal governments pension funds was made following an extensive process of consultation with CTAs stakeholders, including members, elected officials, union leaders, the California Public Employees Retirement System (CalPERS), and others, and the CTBRA and the state of California,” Kompels letter read.
Mr Koppell said the union was looking forward to the election of a new CTAA president, but did not disclose the next step.
CalPers spokesperson and CTBDA President Dan Scherer said the new president would be in charge of the union’s pension funding, which would also be decided on the next meeting.
But he said the board of directors had recommended that the CTDA vote to withdraw.
CDPRA spokesperson and union representative Mary Broussard said the CDPRA had not received the letter from the CTSA and that the union would be seeking more information from the CTSA.
“We will follow the CTCAA’s process to determine if we have a reasonable plan to continue the CTCA’s role as a trustee of CalPERS pension funds,” she said.
It comes after the state recently announced it would not pay the CTBA’s annual contribution of $2.1 billion, which was set to be collected by 2023 in exchange for its membership.
“This decision was a blow to the leadership of the CTPAs, which represents thousands of California teachers and supports nearly 4 million workers,” Mr Koppeling said.
“It is an important step for us to ensure that CTAs members can continue to contribute to CalPers pension funds, and we look forward to having a new CTPA president.”
Topics:workers,education,government-and-politics,business-economics-and.financial-markets,business,union,calgary-4000,calamity-4230,france-dpau,calivia,calstate-6425,united-statesFirst posted May 01, 2021 13:00:49Contact Alex NeillMore stories from Queensland