L.A. Now Live: Discuss Jerry Brown's new pension plan
The Times' Sacramento Bureau reporter Anthony York will join L.A. Now Live at 9 a.m. to discuss details of Gov. Jerry Brown's new pension plan for state workers.The plan, announced Tuesday, would rein in public pension costs by raising the retirement age, capping benefits for the highest-paid employees and eliminating "spiking." The plan lacks key parts of the bolder system overhaul he proposed months ago and would even increase some payouts.
It does not contain a linchpin of his original plan, however: a requirement that new employees have a substantial portion of their retirement money in 401(k)-style accounts. Such a mandate would have shifted considerable financial risk from the state to the employees.
The plan also does not address skyrocketing healthcare costs for retirees, another main element of the governor's first proposal. Hundreds of thousands of government workers have been promised medical coverage for life.
The new plan, which lawmakers expect to vote on Friday, the last day of their session, would mostly affect new government employees. Benefits for current workers would stay largely the same, though many would be asked to pay a larger share of their own retirement.