Now We Get Bipartisan Legislation on Pension Caps

Assembly bill caps public worker pensions (excerpt)

January 7, 2011, San Francisco Chronicle,
Nanette Asimov

Spooked by the University of California’s pension revolt – in which its highest paid executives are threatening to sue unless UC fattens their retirement benefits – a Democratic state lawmaker introduced a bill Thursday to prevent all public employees from gaining dramatically increased pension benefits. And Republicans are applauding. “You’re witnessing a moment of bipartisan joy,” said Assemblyman Tim Donnelly, R-San Bernardino, vice chairman of the Higher Education Committee. “I’m ashamed that I didn’t think of this myself.” The UC executives, some of whom earn more than $700,000 a year, want their pensions calculated as a percentage of their full salary, not just the first $245,000, the cap imposed by the Internal Revenue Service.So does Assemblyman Jerry Hill, D-San Mateo, whose AB89 would require all public retirement programs in California, including UC’s, to adhere to the IRS cap when calculating benefits for employees who join the retirement system after Jan. 1, 2012.

…State Sen. Mark Leno, D-San Francisco, on Thursday urged the executives to retract their demand. “It just begs a legislative response, whether it’s the proposal by Assemblyman Hill or any other that may follow,” Leno said. “It is ill-conceived on the executives’ part to pursue this any further.”…