◼ Next governor to challenge PEU establishment: Jerry Brown? - HotAir
In one sense, this isn’t all that surprising. Brown presides over a state budget that is an utter disaster, largely because of the massively underfunded pension systems for state employees. Any rational executive would have to address this problem in order to put the state back on a realistic fiscal footing, but Brown’s predecessor — the nominally Republican Arnold Schwarzenegger — didn’t exactly demonstrate courage in challenging the state’s PEUs on pension reform.
However, even with that said, Brown’s gambit is notable for both his courage to go after the PEUs and the type of reform he’s proposing. Most states use defined-benefit models for their public-sector pensions, which is why their systems are nearing collapse. Brown moves significantly (although not entirely) towards a defined-contribution plan that essentially transforms pension systems into 401K instruments, as KNX reports. Also, the elimination of “spiking” takes a big step towards eliminating the kind of corrupt actions seen in California, where gaming pensions has become a common strategy in the final years of employment....
Needless to say, the PEUs aren’t going to take this lying down...
◼ Gov. Brown Unveils New Pension Plan For State Workers - LA CBS local
◼ Jerry Brown wants voters to approve his pension overhaul plan - Jon Ortiz/Sacramento Bee
◼ Brown will propose benefits for new state workers that combine elements of traditional pensions with a 401(k)-style savings plan. He says the state can no longer afford its current retirement system. - LA Times
Governor Jerry Brown
c/o State Capitol, Suite 1173
Sacramento, CA 95814
Phone: (916) 445-2841
Faxes: (916) 445-4633 Fax: (916) 558-3160
Website: http://gov.ca.gov/
Email: governor@governor.ca.gov
