Jerry Brown on Social Security
Moral obligation to fund pension obligations
Our retirement liabilities--for pensions and lifelong health benefits for state and university workers--total $220 billion. These liabilities are so massive that it is tempting to ignore them. We can't possibly pay them off in a year or two or even 10.
And there is little satisfaction in the notion of chipping away at an obligation for three decades to pay for something that has already been promised. Yet, it is our moral obligation to do so--particularly before we make new commitments.
Source: 2016 State of the State speech to California legislature
, Jan 21, 2016
Cap benefits & increase retirement age
Governor Brown today signed sweeping bipartisan pension reform legislation that saves billions of taxpayer dollars by capping benefits, increasing the retirement age, stopping abusive practices and requiring state employees to pay at least half of their
pension costs. "This is the biggest rollback to public pension benefits in the history of California pensions," said Governor Brown. "We're lowering benefits to what they were before I was Governor the first time and reducing costs by up to
$55 billion in PERS and billions more in other local pension systems. Under the new rules, employers and employees alike are going to contribute their fair share of the costs, resulting in a more sustainable system."
The pension reform law,
AB 340, requires current state employees and all new public employees to pay for at least 50% of their pensions and establishes this as the norm for all public workers in California.
Source: California governor's website press release
, Sep 12, 2012
Page last updated: Jul 15, 2017