Agreement with Legislature Imposes Lower Tier for New Hires, Pension Salary Cap, Phased-in Mandatory Cost Sharing
At a news conference in Los Angeles, Gov. Jerry Brown announced an agreement that will take public employee retirement security back to the Reagan years.
The plan – hashed out with legislative leaders behind closed doors – imposes a range of rollbacks, all without the benefit of collective bargaining.
- New lower tier for almost all employees – local, state, teachers, the works. Public safety retirement would top out at 2.7% at 57;
- A cap on pensionable income -- $110,000 for those who pay Social Security; $130,000 for those who don’t.
- Mandatory cost sharing immediately, for all new employees, and by 2018, for current employees;
- Three-year final compensation averaging;
- Limits on pensionable compensation, airtime purchases, pension holidays and retroactivity.
You can read the governor’s media release HERE.
CPF President Lou Paulson had the following statement on the governor's announcement: