Governor Brown Releases Twelve-Point Pension Reform Plan
On October 27, 2011, Governor Brown released a twelve-point plan to reform public pensions that he wants placed on the November 2012 ballot. Significant components of the plan include requiring new and current employees to transition to a contribution level of at least fifty percent of the cost of their pension benefits, creating a hybrid risk sharing system for new employees where they will participate in a defined benefit pension plan and defined contribution plan similar to a 401(k) plan, and setting the retirement age for most new non-public safety employees at the Social Security retirement age, which is presently 67. While the plan says it will apply to all California state, local, school and other public employers "as legally permissible," the plan does not provide any specific details about the extent to which it will apply to such agencies if it is approved.
To read a copy of the Governor's plan click here.ShareThis