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Pension reform panel looking at alternative hybrid plan

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State lawmakers considering pension reform are taking their show on the road to Chino on Friday and say they are looking at a hybrid pension plan offered by the state teachers retirement system as a possible model.

Gov. Jerry Brown proposed a 12-point reform of the state pension systems in October that included providing a portion of retirement benefits to new employees through a 401(k)-style plan, but some members of the Legislature’s Conference Committee on Public Employee Pensions are concerned that workers could see significant losses in such plans if the stock market tanks.

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Assemblyman Warren Furutani (D-Gardena) said a concept his committee is considering would include a cap on defined benefits and, above that, provide a cash balance plan that would guarantee the principal and a rate of return tied to treasury bonds.

‘That’s what we are looking at right now,’ said Furutani, co-chair of the committee.

The panel is holding a public hearing at 1 p.m. Friday at the Chaffey College Community Center, with the focus on local pension systems.

The alternative hybrid proposal is based on a plan already offered by the California State Teachers Retirement System. Sen. Gloria Negrete McLeod (D-Chino), the committee’s other co-chair, said Monday the committee does not yet have a concrete proposal and still hopes to work out a compromise with Brown.

‘We certainly don’t want to present something to the governor that he is unwilling to sign,’ she said. ‘We certainly want to reach some kind of consensus.’

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Sacramento Republicans back Gov. Jerry Brown’s pension proposal

--Patrick McGreevy in Sacramento

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