From SF Gate:

Gov. Jerry Brown announced a  compromise with Democratic legislative leaders on changes to pension benefits  for new public employees Tuesday, an agreement that includes legislation to cap  pensions, curb pension spiking, increase to 50 percent the amount employees  contribute to their retirement benefits and raise the retirement age.

Instead, Democrats  and the governor agreed to put a hard cap on the amount of compensation that can  be used when calculating someone’s retirement pay. Currently, there is no limit  on the pay by which a public employee’s pension is calculated and some pensions  run as high as $500,000 a year.

For public employees participating in Social  Security, the proposed cap would be based on the Social Security wage limit,  which is currently $110,100 a year. Public workers not paying into Social  Security would have pensions based on a salary of up to 120 percent of the  Social Security wage limit, or $132,000 a year

Public employee unions, as expected, expressed anger at the proposed changes. Dave  Low, chairman of a coalition that represents 1.5 million public employees  and retirees, said the proposal will hurt “all Californians” by making it harder  to attract and keep teachers, police officers and firefighters at work .

Tweet
Share
0 Shares