A taxpayer advocate says California is feeling the heat from Wisconsin to reform pensions, but changes signed by the state's governor are not sufficient.
Governor Jerry Brown signed into law a bill that increases the retirement age for new employees, increases employee contributions and reduces benefits for future employees. The changes that take affect next year will eventually require all state workers to pay half of their pension costs. Brown thanked lawmakers on both sides for reaching a deal, although Republicans say much more needs to be done to reform the system.
Lew Uhler is the founder and president of the National Tax-Limitation Committee. He says the changes accomplish too little.
"It's clear that Governor Brown is feeling the heat from the roasting that occurred in Wisconsin earlier this year," he observes. "Pension change of the kind that he's signed is inadequate. The San Diego and San Jose initiatives for pension for public employees passed earlier this year do the right thing--they address pensions in the future for current employees, as well as for new employees."
The changes cut the yearly payout at a little over $130,000 and reduce pension abuses. Although Uhler asserts the changes are good, he says it's time to stop pension recipients from getting a percentage of their last year of service pay and to stop the "spiking."