UC or not UC? – That is the question (to be answered in a few hours)
Bits and pieces of Governor Brown’s public pension plan are leaking out ahead of his news conference later today. UC or not UC, that is the question, as Hamlet might say. But the leaked reports don’t provide the answer so we will have to wait a few hours more. The Capitol Alert report from last night and another from KCAL indicate that the reason Brown wants a ballot prop is to change the CalPERS board. Excerpt from Capitol Alert:
Gov. Jerry Brown will propose a higher retirement age and a less generous pension system for newly-hired state workers, sources familiar with Brown’s pension plan said this afternoon. The Democratic governor, who is expected to release his pension plan Thursday, will also propose prohibiting the purchase of additional retirement service credit, or “airtime,” for existing employees. And he will call for a ballot measure to reshape the governing board of the California Public Employees’ Retirement System, requiring changes to Proposition 162, the 1992 initiative that strengthened the retirement board.
The proposal includes some of the same ideas Brown discussed with Republicans in failed budget talks in March. At the time, however, Brown was thought to be considering for new employees a “hybrid option” involving 401(k)-style benefits, not making that hybrid mandatory for new employees.
The hybrid option Brown will propose for new non-public safety employees will be a three-pronged plan that combines a smaller, defined benefit with Social Security and a 401 (k)-style benefit. The plan, as presented privately by the Brown administration to labor leaders this afternoon, also includes increasing the retirement age from age 55 to 67 for most new, non-public safety employees, the sources said…
Full story at: http://blogs.sacbee.com/capitolalertlatest/2011/10/jerry-brown-to-propose-mandatory-hybrid-among-pension-changes.html
Here is the similar report from KCAL Channel 9 (that Shane White pointed me to):
However, the KCAL story says ALL employees – not just new hires – will pay half of pension contributions. Even if UC is not included, that contribution formula could put pressure on the Regents to follow. Stay tuned.
