Public Pensions To Be Sliced and Diced
Governor Brown and lead legislators announced they have arrived at a deal for a new law to limit California State - paid public pensions.
Some of the key cuts include, but are not limited to:
The salary of future hires that will be considered for pension purposes will be capped. The ceilings: $110,000 for employees who participate in Social Security and $130,000 for those who don't, such as fire fighters, police and teachers.
The pension formulas for new hires -- both safety workers such as police and firefighters and miscellaneous employees -- will be rolled back.
New employees will pay half of their normal pension costs. Employers and Unions still have to bargain contribution rates for current employees.
Miscellaneous employees -- the largest category of workers -- would have to wait until their 67th birthday for maximum retirement benefits, compared with age 62 for most current workers. Future safety employees -- including police, firefighters and prison officers -- would would have to wait until age 57 to qualify for maximum benefits.
No more "spiking." Pensions will be figured using a three-year salary average that includes only regular recurring pay.
Retirees can work a maximum 960 hours per year.
Felons will lose their pensions. (This is the "Bell, California provision".)
No more retroactive pension enhancements.
No more "pension holidays" that allow employers and employees to skip contributions when pension funds are fully funded.
No more "air time" purchases ---Additional service credit purchases will be eliminated.
