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Governor Releases Legislative Language on his Pension Reform Plan

February 2, 2012
On Thursday, Gov. Jerry Brown released two documents containing language for his 12-point pension reform plan: Part 1 and Part 2. The Governor first released his plan in April 2011. He released a revised version of his plan in October 2011.

The following are the twelve points listed in the Governor's summary:

  1. Requires equal sharing of the normal cost of pensions among employers and employees;
  2. Hybrid risk-sharing pension plan for new employees;
  3. Increases retirement ages for new employees;
  4. Requires a three year average calculation for final compensation for new employees;
  5. Calculates benefits based on regular, recurring pay;
  6. Limits public employee post-retirement employment to 960 hours;
  7. Requires forfeiture of benefits if convicted of certain felonies;
  8. Prohibits retroactive pension increases;
  9. Prohibits pension "holidays;"
  10. Prohibits purchase of "air time" or additional service credits;
  11. Increases pension board independence and expertise; and
  12. Reduces retiree health care costs for the state and encourages local governments to do the same.

In a letter addressed to members of the Conference Committee on Public Employee Pensions, the Governor said "urgent and decisive action is imperative."

During the committee's meeting last month on Hybrid Plans, many members expressed their desire to act on the issue during this legislative session. While this language may be the subject of their next meeting, no details are available at this time.

League staff will analyze the newly released language and report on specific details as soon as possible.

For questions please contact Natasha Karl.

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