Gov. Jerry Brown, Democrats strike controversial public pension dealCategories: California Developments,Legislative Updates
The Governor and Legislature finally agreed on long-awaited major pension reform on Tuesday. Because the language was released in a committee bill, the comprehensive proposal allows for no amendments and will be decided by an up-or-down majority vote on August 31. The main provisions of the proposal include a cap on pensionable compensation, lower pension formulas, higher retirement ages, and language to eliminate abuses such as pension spiking and double-dipping.
Gov. Jerry Brown, Democrats strike controversial public pension deal
From the Sacramento Bee, by: Jon Ortiz, Published Wednesday, Aug. 29, 2012
Gov. Jerry Brown and Democratic lawmakers unveiled a long-awaited deal Tuesday that for the first time would set statewide public pension formulas for new hires in both state and many local government jobs.
Pension experts said the plan, which assumes higher contributions from existing employees and imposes pension caps and raises the retirement age for new workers, falls short of the Democratic governor’s own earlier proposal to rein in those costs.