State pension reform envisioned
February 10, 2012
Public employees’ pensions will be reformed by the legislature before the next state budget is adopted, Senate President Pro Tempore Darrell Steinberg predicted today. [Sacramento Bee]
“We are committed to getting pension reform done,” said the Upper House leader, downplaying the impact of a failed effort by a nonprofit group to place a reform initiative on the ballot this year.
California Pension Reform, an advocacy group, ceased its signature-gathering efforts earlier this week.
Steinberg said lawmakers’ proposals will incorporate, but not mirror, suggestions made by Gov. Jerry Brown. Some of those include raising the retirement age of public pension earners to 67 for most new employees, and creating a hybrid system with Social Security and a modified 401(k). The Senate boss said any plan that will be forthcoming will not adversely affect low and middle-income earners.