Demsey, Filliger & Associates

Wrapped up as we have been in the fight to abolish mandated actuarial assumptions, it’s easy to lose sight of the bigger picture.  AB 554 has been enrolled and has been or will be presented to the Governor for signature or veto some time in the very near future.  While our arguments against AB 554 make perfect sense to us, we must admit objectively that Governor Schwarzenegger would have much to lose and very little tangible to gain from vetoing the bill, at least in the short run.  If I were in the Governor’s position, would I sign or veto?  The fact is, I’m glad I’m not in his position.  I fear enough retribution from just our stance on one bill.  Multiply that by the thousands of bills that come before the Governor each year…. it is truly staggering.  How can he know whom to believe?  How can he take the time to research every bill on his desk?

We’ve been very impressed with his signing and veto messages - he’s consistent, thoughtful, honest, and for all appearances, has the welfare of most Californians at heart.  And, it’s hard to keep from shuddering at the thought of how poorly Governor Davis rose to these challenges and how much worse off the State would now be had not Governor Schwarzenegger arisen on the scene to rid us of Davis’ endless dithering and uninformed decision making.  Even our climate seems better now with Arnold at the helm.

When Governor Schwarzenegger takes the proverbial pen to AB 554, we of course continue to hope for the veto, because we believe that it is absolutely vital to check PERS’ meddling in affairs best left to private actuarial professionals.  But, if the Governor signs the bill instead, we understand that he is doing so for his vision of what’s good for the State of California.  For that we applaud him and thank Providence that he is in the Governor’s office at this critical time in history.   We’d rather have Governor Schwarzenegger and AB 554 than Governor Davis and no AB 554.   After all, whether AB 554 be signed into law or vetoed, the real fight is only just beginning.

LF