Pension Reform Bill Is Now Law
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Governor Jerry Brown
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Sacramento, CA - Governor Jerry Brown has signed into law sweeping pension changes. The Governor says this law will save California taxpayers billions of dollars in the future.
Brown signed the legislation today at the Ronald Reagan State Building in Los Angeles.
Governor Jerry Brown says "This is the biggest rollback to public pension benefits in the history of California pensions. We're lowering benefits to what they were before I was Governor the first time and reducing costs by up to $55 billion in PERS and billions more in other local pension systems." Brown adds "Under the new rules, employers and employees alike are going to contribute their fair share of the costs, resulting in a more sustainable system."
The Associated Press says the pension reform law, AB 340, requires current state employees and all new public employees to pay for 50 percent of their pensions and establishes this as the norm for all public workers in California. The law also increases the retirement age for new public workers and caps the salary amount that can go towards pensions.
State lawmakers sent the bill to the Governor last month. The AP says it will affect state and local government workers hired after Jan. 1, 2013.
Some leading Republican lawmakers have argued that the reforms did not go far enough.
Written by Tracey Petersen
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