Calif. pension reforms haven’t reined in costs
By Judy Lin, Los Angeles Times
A year after his 2010 election, Gov. Jerry Brown made a rare appearance at a legislative committee hearing to confront lawmakers about the steep cost of public employee pensions — and to demand that they pass his 12-point pension overhaul.
Brown challenged fellow Democrats to drink political “castor oil” so public retirement costs would not overburden future generations.
State lawmakers eventually passed many of Brown’s proposals, including a higher retirement age for new employees. But they rejected those with the biggest dollar savings — notably his plan for a hybrid retirement system combining smaller pensions with 401k-style savings plans.
The state’s annual bill for retirement obligations is expected to reach $11 billion by the time Brown leaves office in January 2019 — nearly double what it was eight years earlier.