Under the proposal, new state workers would move to a hybrid system combining guaranteed benefits with a 401K-style . It would also raise the retirement age from 55 to 67 and require that both new and existing employees pay at least 50 percent of the annual cost of their pension benefits.
Brown said today he wants to put the plan before voters in November, 2012.
Analysis from KQED Sacramento Bureau Chief John Myers:
Brown's proposal is obviously only a starting point for negotiations with the Legislature. And from the sound of things so far, it's a tough sell with the state's politically powerful labor unions. In particular, his proposal for a hybrid system combining traditional pension benefits with a 401(k) style package is drawing fire.
The real question may be whether this plan is enough to solve the funding woes of the state's two pension funds. The governor's own advisers told reporters today that while the proposal offers "opportunities" to downsize the so-called 'unfunded liability' of CalPERS and CalSTRS, it does not guarantee that those pension funds will be able to get out of the long-term hole they're in. Instead, advisers say it'll keep the hole from getting deeper.
And that's going to be a tough sell to those most adamant that government roll back pension benefits -- not just for future workers, but for current workers who've yet to retire. In other words... this proposal is, for now, getting hit from all corners.