Gov. Brown to share details on public employee pension deal
Gov. Jerry Brown will fly to Los Angeles on Tuesday to spell out the terms of a deal brokered by Democrats and union leaders to cut the state's public employee pension costs.
The governor backed away from the centerpiece of his 12-point pension proposal, which had called for a hybrid plan that incorporates a 401(k)-style system, according to Assemblyman Warren Furutani (D-Gardena), chairman of the joint legislative committee dealing with the pension issue.
Instead, the agreement will limit the annual salary that a public employee’s pension can be based on at $110,000.
Cities and counties and other local jurisdictions will have the option of offering an additional benefit to those who make more than the cap. That option will not be available for state workers.
"We have landed the plane," said Furutani, referring to the effort to reach an agreement with Brown. "This is going to be a major, comprehensive reform of the public pension systems."
The governor will also introduce a tiered system that will allow workers to collect full pensions at age 67 and will increase the age to 57 for public safety workers, Furutani said. Currently, most state workers receive maximum pension benefits at age 63 –- up to 2.4% of their highest salary for every year worked.
State Senate leader Darrell Steinberg (D-Sacramento) said Monday he expects the changes will save the state "tens of billions of dollars" over the next two to three decades.
Gil Duran, spokesman for the governor, said Brown chose Los Angeles because it is the largest city in the state. Stay tuned to PolitiCal for additional details.
-- Anthony York and Patrick McGreevy
Photo: Gov. Jerry Brown campaigns Wednesday in San Francisco for the Prop. 30 tax initiative. Credit: Paul Sakuma / Associated Press.