Gov. Brown Signs Calif. Pension Reform Bill

Most changes will affect new government hires, but also fights pension spiking

Nearly a year after proposing drastic changes to California's public employee pension system, Gov. Jerry Brown on Wednesday signed a far more modest compromise law that is estimated to save taxpayers more than $55 billion in the coming decades.

The bill falls short of what the Democratic governor had sought, but still includes some significant changes for his public employee union allies. The measure will raise the retirement age and limit annual payouts for employees hired after December 31, and require new and current workers to split the cost of retirement benefits with taxpayers. It applies to state and local public workers.