October 27, 2011

SMALL BALL, BUT A START:

Gov. Jerry Brown risks backlash on pension plan: The governor's proposed retirement system overhaul sets the stage for battles with fellow Democrats and his biggest supporters, public employee unions. (Anthony York and Michael J. Mishak, Los Angeles Times, October 28, 2011)

Gov. Jerry Brown proposed a sweeping overhaul of California pensions that would require public employees to pay more for their retirement and cut benefits for those hired in the future, setting the stage for a fierce battle with fellow Democrats and some of his main political supporters: unions representing government workers.

Brown's 12-point plan, announced Thursday, would require that all public workers have at least half the cost of their pensions deducted from their paychecks. Most state employees already make that contribution, but many in cities, counties and school districts across the state pitch in far less.

The governor also wants future employees to receive up to a third of their retirement income from a 401(k)-style plan rather than a traditional guaranteed pension. And he urged that the retirement age for most new public workers be raised from 55 to 67.

You have to have fixed contribution, not benefit and retirement age should be in the 70s for new hires, but it's an improvement.

Posted by at October 27, 2011 4:28 PM
  

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