California pension reform bill

California Governor Jerry Brown issued a press release to detail the reform bill he is proposing to eliminate drastic deficit due to California state employee pension plans.

As part of his bill, Gov. Brown proposes to eliminate the option for employees to supplement their plans with extra retirement service credit. A second provision would eliminate the option for an employer or employee to suspend the necessity to contribute to a plan.

The bill also proposes:

  1. Eliminating the option for a government agency to pay an employee contribution to carry the normal cost of retirement benefits
  2. Eliminating the right of public agency to grant retroactive benefit enhancements
  3. Change the calculations for final compensation for new employees
  4. Ensure no employee who commits a felony while in service to a public agency has access to his or her pension upon retirement

About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
This entry was posted in Executive Benefits, News & Updates, Qualified Retirement Plans, Retirement. Bookmark the permalink.

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