Here is some of what's in the big pension deal announced
Tuesday by Governor Jerry Brown: A cap on the salary that a public
employee in California could use to calculate a pension.
Higher retirement ages, with reduced payments. And a
requirement for employees to pay at least half of their pension
It's taken the governor nearly a year to walk through the
pension minefield. And as he unveiled the deal to reporters
in Los Angeles, he took a bit of a victory lap.
Brown: "It's a big day for
California voters and California taxpayers."
The legislation doesn't do everything Brown proposed last fall
in his 12-point plan. For example, the pension salary cap of
$110,000 is in place of a hybrid 401k-style system. And it
could take up to five years before all employees pay half their
pension costs. But the governor says it will save the state
tens of billions of dollars while ending abuses like spiking and
Brown: "Look - this is a major
step. It took moving heaven and earth to get this far.
Is this the end of the story? No. We'll continue to monitor
The deal swiftly met fierce pushback from public employee
unions. They say it would take a "wrecking ball to retirement
security" while undermining collective bargaining.
Republicans are skeptical too, especially because they just
got their first look at the bill's language late Tuesday. GOP
Senator Mimi Walters calls the deal "a much watered-down version"
of Brown's original proposal.
Walters: "And my biggest concern
is that they aren't making any constitutional changes - it's all
statutory. And what will happen is in the future,
legislatures can undo the changes that they want to put
Democratic legislative leaders are praising the deal and
promising a vote on Friday. That's the last day before
lawmakers adjourn for the rest of the year.