Not Exactly Historic, But Not Bad

by CalWatchdog Staff | October 20, 2010 4:25 pm

Steven Greenhut: This is from the governor’s office:

Governor Schwarzenegger Signs Historic Pension Reform into Law

Reforms to Save $100 Billion and Impose New Requirements on State Pension Fund

Governor Arnold Schwarzenegger today signed SB 867[1] and SBX6 22[2] by Senator Dennis Hollingsworth (R-Murrieta), formally implementing comprehensive pension reform for the people of California. Together, these bills implement a public pension system that is fair to both the employees and also to the taxpayers and will help ensure California’s future fiscal health.

“Pension reform is a major victory for the people of California. Pension debt has become the silent thief of our treasury, robbing vital programs such as education, parks, public safety and environmental protection,” said Governor Schwarzenegger. “With this reform we will put California on the road to fiscal health. I promised the people of California that I would fight for this pension reform and I am proud to sign legislation to finally make it law.”

These two bills implement pension reform by rolling back SB 400 for new employees, ending the practice of pension spiking and increasing transparency in the pension system. These reforms are projected to save CalPERS up to $100 billion over the decades to come. Specifically, the bills:

These legislative changes build on the Administration’s recent agreements with public employee unions. Thus far, the Administration has reached bargaining agreements with the following public employee unions: the California Association of Highway Patrolmen, California Department of Forestry Firefighters, California Association of Psychiatric Technicians, American Federation of State, County and Municipal Employees, Union of American Physicians and Dentists, the International Union of Operating Engineers and the Service Employees International Union.

OCT. 20

  1. SB 867:
  2. SBX6 22:

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