Last week, Gov. Jerry Brown unveiled a 12-point public pension reform plan, which he hopes to be included on the November 2012 ballot. The plan would ask voters to increase the age at which future state and local government employees could retire with full benefits, provide less-generous benefits, and make a 401(k)-style benefit part of state pension plans, among other proposed changes. The reform has received praise from the business community. Along with Orange County Business Council, which applauds Governor Brown’s effort to produce a workable and logical pension reform plan that is respectful of both public employees and the taxpayers.
“The business community needs certainty, stability and predictability and the Governor’s pension reform plan will start to bring those things to California’s budget”, said Lucy Dunn, President and CEO.
The plan would impact current and future workers by mandating employers and employees to equally share the cost of pension contributions, as an alternative to the current system, where employers pick up the majority or all of those costs. The proposal is getting a cautious reception in the Legislature, with a two-thirds majority in both houses needed to place the components that require voter approval on the ballot. Failing that, the Governor would face the challenge of a costly petition campaign.
“We have been asking our leaders to lead and Governor Brown has responded in a thoughtful and engaged way to set California on a more sustainable fiscal path,” Dunn said. For more information contact Kate Klimow, Vice President of Government Affairs.