National Pension Update AFSCME California March 13, 2016

NPPC: Who We Are

Why Pensions? Provide retirement security Median retirement account balance for pre- retirees is $14,500 401(k)s put workers’ retirement security at the mercy of the market Pension plans consistently outperform 401(k)s Cost-effective for state Fewer fees going to Wall Street Professionally managed and scaled returns because investments are pooled together On average, pensions make up less than 4% of a state’s budget.

Retirement Security: The Big Picture More than 70 million American workers have NO employer-sponsored retirement plan 38 million Americans have nothing saved for retirement The median TOTAL retirement account balance is $3,000 Social Security benefits are less than $1,200 per month for millions of retired low wage workers with no other source of income

Types of Pension Attacks Converting defined benefit pension to: 401(k) “Hybrid” Cash Balance Smaller changes like: Increasing retirement age Increasing years for average salary Opt-out provisions for entities or individuals

2016: State by State Outlook Arizona California Colorado Florida Georgia Illinois Indiana Kansas Kentucky Louisiana Michigan Missouri New Jersey Oklahoma Pennsylvania Texas Wyoming

2015: Who Are We Up Against? John Arnold Foundation ALEC Koch Brothers/Americans for Prosperity Liberty Initiative Fund Seemingly “nonpartisan” organizations – Pew, Brookings, PBS Ed “Reform” Organizations Texans for Local Control (Houston based)

What’s The Motive? $1.5B $8M $50M

How Does John Arnold Operate? Bad Ballot Initiatives -- $1.042 million to Phoenix Proposition 487 Phony Pension Research -- $4.85 million to Pew Charitable Trusts Anti-Pension Politicians -- $200,000 to Gina Raimondo’s PAC Skewed Journalism -- $3.5 million to PBS Flagship WNET (later returned) Academia - $2.5 million to George Mason University Symposia

Contact Information Bailey K. Childers Executive Director National Public Pension Coalition 903-918-7160 bchilders@protectpensions.org www.protectpensions.org @baileykchilders