Gov. Brown to Share Details of Pension Deal

Deal brokered by Democrats and union leaders to cut the state's public employee pension costs.

Gov. Jerry Brown will fly to Los Angeles on Tuesday to spell out the terms of a deal brokered by Democrats and union leaders to cut the state's public employee pension costs.

The governor backed away from the centerpiece of his 12-point pension proposal, which had called for a hybrid plan that incorporates a 401(k)-style system, according to Assemblyman Warren Furutani (D-Gardena), chairman of the joint legislative committee dealing with the pension issue.

Instead, the agreement will limit the annual salary that a public employee's pension can be based on at $110,000.

Comments

[Crusader Rabbit]

If this weren't so brazenly insulting it would actually be funny. The art of taking money out of one pocket and stuffing it another has never been so well refined as under Jerry Brown.

[johnl]

Capping the base pay isn't as beneficial as switching to individually managed accounts. But if there are also limits to prevent the acquisition of more than one year of service at a time, then abuses are limited. This reform would make the management of CalPollyanna the biggest risk to the state's pensions.