Gov. Jerry Brown has unveiled a plan to reform California’s troubled public pension systems, the San Jose Mercury News reports.
The move comes as Sacramento lawmakers scramble to save face after the collapse of state budget talks earlier this week. The breakdown was due in part to Brown’s resistance to Republican demands for pension overhaul.
Here are some highlights from Brown’s proposal, via the Mercury News:
- Bar public workers and retirees from buying additional retirement credits.
- Prohibit state and local government employers from skipping pension payments or covering employee pension contributions.
- Ban public agencies from granting retroactive pension benefit increases.
- End pension spiking.
Brown also said he would consider broader measures – including capping maximum pension benefits, eliminating double-dippers and switching to a “hybrid” pension system – but did not provide details.
Republicans and pension reform advocates say the measures are a step in the right direction, but fall short of addressing the systemic problems in the state’s retirement plans. California’s 10 largest pension funds faced a combined shortfall of $240 billion in 2010.
Brown also said he is forming a plan to address the growing unfunded liability of the California Teachers’ Retirement System (CalSTRS). CalSTRS – the nation’s largest teachers’ retirement fund – said Thursday that its unfunded obligation grew to $56 billion last year. The pension system is now 71% unfunded, according to the Sacramento Bee.
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