Governor Moonbeam Sees The Light, Ca State Pensions Unsustainable

Reporting from Sacramento — Gov. Jerry Brown will unveil a 12-point plan to overhaul California’s strained public retirement system Thursday, proposing benefits for new state workers that combine elements of traditional guaranteed pensions with a 401(k)-style savings plan, according
to people briefed on the matter.

Brown will also propose raising the age at which most new state employees can get full benefits, from 55 to 67.

Details of the governor’s plan were provided by labor leaders who received an outline of the proposal from him late Wednesday. They spoke on condition of anonymity because Brown asked them not to reveal details to the media.

Brown, who has said the state can no longer afford its current pension system. For example, Brown will ask legislators to take steps to end “spiking” — giving workers pre-retirement raises to boost their pensions.He also wants to prohibit retroactive pension increases and eliminate “air time” — employees’ ability to buy credits for years they have not worked.

Governor Moonbeam sees the light..

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