Governor Unveils Pension Reform Plan
Yesterday, Governor Brown unveiled a 12-point plan to “… fix our pension systems so that they are fair and sustainable over a long time horizon.” If enacted, the Governor’s plan would affect both state and local government pensions. The Governor’s proposals are as follows: Equal Sharing of Pension Costs (All Employees and Employers): Phase in requirement that the annual normal pension cost of pensions be shared equally by employees and employers. “Hybrid” Risk-Sharing Pension Plan (New Employees): Establish a “hybrid” plan that includes a reduced defined benefit component and a defined contribution component that will be managed professionally to reduce the risk of employee investment loss. …