Schwarzenegger, some unions cut pension deal
Gov. Arnold Schwarzenegger cut a deal with four public employee unions Wednesday on new labor contracts that will reduce state contributions to employee pensions and scale back worker pay, Capitol Weekly reports.
"The proposed agreements include increasing the retirement age for new hires, boosting the workers’ contribution to [the Public Employees' Retirement System) and using three-year top-pay formula instead of one year to calculate pension levels. All the changes -– and others -– had been sought by Gov. Schwarzenegger as part of his pension-reform efforts to help balance the red-ink state budget," Capitol Weekly said.
"They contain roughly a 5% pay cut and approximately a 5% increase in the worker’s contribution to the state pension program, said Terry McHale, a lobbyist who represents the firefighters and the Highway Patrol officers.
"The four bargaining units are CDF Firefighters Local 2881, the California Association of Highway Patrolmen (CAHP); the American Federation of State, County and Municipal Employees (AFSCME) Bargaining Unit 19 representing the health and social services professionals; and the California Association of Psychiatric Technicians (CAPT)."
You can read the full story here.