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