Gov. Brown Unveils Calif. Pension Reforms

Wednesday, 29 Aug 2012 12:23 PM

By Alec Weisman

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
California Gov. Jerry Brown and Democratic lawmakers unveiled pension reform legislation Tuesday that keeps most benefits for current public employees but raises the retirement age for new state hires.
 
The legislation calls for a annual pension cap for new public employees, who will be required to contribute at least half of their pension costs and will see their retirement age increases to 67 from 55 for current employees, according to the San Diego Union Tribune. Public-safety employees, such as police, fire, and teaching personnel will see their retirement age increase to 57 from the current 50.
 
Brown said the changes could eventually save $30 billion. But some experts say the state's two pension funds are underfunded by at least $150 billion.
 
Although the legislation redefines benefits for both state and local public employees, the reach of the law would be limited, as charter cities will be exempt and local agencies will be permitted to adopt less generous pension plans. The University of California system would also be unaffected by the proposal because it is independent under the California Constitution, according to the Union Tribune.
 
Democratic lawmakers are pushing for approval of the bill by the end of the legislative session at midnight Friday. If it passes, it would take effect on Jan. 1, 2013.
 
The bill is opposed by organized labor and by Republicans for different reasons. Employees unions don't like the changes and GOP state lawmakers say the legislation doesn't go far enough to address the state’s unfunded liabilities.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
[Error loading the WebPart '']
Value cannot be null. Parameter name: virtualPath
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Baby Jesus Stolen From Church Nativity, Replaced by Severed Pig Head

Friday, 26 Dec 2014 18:40 PM

Sometime between Christmas Eve and Christmas morning, someone stole baby Jesus from a Massachusetts church's nativity sc . . .

Transit Officers Help Deliver Baby on Philly Subway on Christmas Day

Friday, 26 Dec 2014 18:03 PM

Two Philadelphia transit police officers helped to deliver a baby on Christmas day after the mother's water broke on a s . . .

Mall of Georgia Flash Mob Wedding Takes Bride by Surprise (Video)

Friday, 26 Dec 2014 17:39 PM

A bride planning to take photos was surprised at the Mall of Georgia with a flash mob and a wedding, all arranged by her . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved