LOS ANGELES (CBS) — Gov. Jerry Brown has unveiled a new pension plan for state workers, which will raise the retirement age to 67 for new hires.

The proposal would create a mandatory hybrid retirement system that would include some guaranteed benefits, but also a 401K-style plan that would be subject to the stock market and other investments.

It would also ban employees from spiking their compensation by piling up overtime and other benefits as they near retirement.

A union-funded pension reform group says the plan targets state workers.

“This is not a growing problem with pensions. It’s a growing problem of our economy failing and the pension programs not being as solvent as they were,” Steve Maviglio of Let’s Talk Pensions told CBS2. “So you’re actually taking a baseball bat to swat middle class Californians who put a lot of money back into our economy.”

The proposed changes would impact all 1.6 million state, county and municipal employees who are part of the CalPERS system.

The plan would not affect employees with the CHP, LAPD, and fire departments across the state.

Experts say California’s pension demands are so strong that they could soon sink the budget.

To review the full plan, click here.

Comments (30)
  1. nancy e says:

    And the REAL problem is the “Safety,” CalPERS speak for prison, police and fire employees, who can retire at 50 with as much as 90% of their salaries. They are the ones who put the PERS system into the mess it is, and now they are the ones being exempted from the changes. How classically political!

    1. John Price says:

      Retire at 90% at age 50? What have you been smoking?

      1. wgaf says:

        After 30 years of service, Minimum age is 21 with a G.E.D, so then 51, whoa big difference.

      2. nancy e says:

        I used to work with them. this is not a joke. It is real. It is called the 3% at 50 plan. And it is NOT affected by Brown’s recommendations. What PERS calls the “miscellaneous” employees, who are anyone not “safety” are not eligible for this plan.

        Of course the vast majority of “safety” employees retire on disability, i.e., trip over a curb on their 49th birthday, and then that 90% of salary is primarily non-taxable. By the way, cops make good money even without the many, many allowances they get.

      3. wgaf says:

        NANCY E
        No it’s 3 at 30. At 30 years of service they get 3% of their final year’s PAY for every year served, 3% x 30years=90%. They can claim an injury any time during employment. Some “injuries” are automatically awarded.

      4. Nancy E says:

        WGAF, you are close. 3% at 50 refers to the minimum age. So they get 3% for every year served, but must be minimum age 50. So if they had 30 years at age 50, they could retire with 90% of total compensation at age 50. They could also retire at age 50 with less than 30 years service and the calculation would be lessened accordingly.

    2. Paco says:

      Spoken like someone who failed the Correctional Officer test and works security at the indoor swap meet . 600k ? Makes about as much sense as you do .

      1. wgaf says:

        I am on only guessing because I only want un poco de tu PACO en mi culo.

      2. wgaf says:

        Stop impersonating me.

    3. Paco says:

      Don’t worry hun , most of us “Safety” people dont live past 55 , hence the early retirement , look it up . The daily stress we endure does us in while you sit “Safely” at home or in your cubical and complain about the cost of being tough on crime that you voted for .

    4. nancy e says:

      It depends on which plan the agency has contracted for as to whether it is final year’s compensation, or something else. The old plans were 2% at 55 based on 3 highest paid years. But the vast majority of agencies switched to 3% at 50 based on final year’s compensation, when that option was added in the 1990’s.. And then the POA (Police Officers Associations) and fire associations are constantly arguing with PERS as to what should be added to the calculation of “compensation.”. So it includes things like motorcycle pay, range pay, detective pay, uniform allowance, education allowance (for those with a college degree), etc., etc.

      Yes, these guys work hard and keep us safe, but they also have a real benefit going that it putting the whole PERS system in jeopardy. Despite how it sounds, I have a lot of respect for them. I just wish they had a bit of respect for anyone who is not “safety.”

  2. El Guapo says:

    Brown is a D-Bag. I hope he slips on a banana peel and dies. I F’d up by voting for him. We need to RECALL this jerk and get some one else who isn’t a wimp. We need someone who will come in and stop listening to the whiny liberal wastes in this nanny state. Viva La Revolution!

  3. Joe says:

    Though all people that are affected by this pension plan changes are not happy, we have to face the fact that the pension plan will not survive if drastic changes are not made.

    For decades, retirees has received overly generous pensions that became a burden to the pension fund. We can all blame a certain group, department, agency etc as the people who are at fault in the failing pension fund but the bottom line here is the pension plan is hurting. It will eventually become insolvent.

    The changes here will not fix it but just meerly extend its existence. Unless people starts accepting changes, accusing fingers will just keep on pointing to other places and people but never to thy self.

    Yes, it will hurt when you no longer look forward to retiring in a comfy pension plan. All we can do is to sacrifice now with the hopes that our children when they become government workers themselves, they will still have a pension plan still available as part of their benefit.

  4. Robert S. says:

    Sad state of affairs, and Jerry Brown is going to make a bigger mess out of California yet! People better “wake-up”, before it is really too late for the taxpayer. Too many people “proped up, and not enough taxpayers, and no real “insight” as to what will happen, as they don’t understand “cause and effect”. Too many politicians that are trying to “better ” them selves and “enhance” their portfolios….not helping the people. Seen this with current Governor in Texas.

  5. Joe Arapaio is king says:

    Hey Brown…how about taking care of the illegal immigration problem. Or the thousands and thousands of people that collect welfare and foodstamps because they are to lazy to work. Or the 600 something murderers that are sitting on death row. We need someone that will clean house. Someone that has some balls and doesnt care what some liberal “rightd” organization will say. Or how the blacks and hispanics will cry some type of racism or violation of their rights. WE NEED jOE ARAPAIO FOR GOVERNOR.

  6. Robert S. says:

    All public figures should be made to go to a school of “economics” and graduate with a high score, before being let make decissions that would affect the people of any state. Should also be “:aware” of how people feel about issues that affect the people, and what won’t be a “Go” with the people. Otherwise the people are just “DREAMING”, and dreams can hurt many, and help very few that are “outsiders”, and being a “bleeding Heart” can hurt the economey, as well as the pocketbook. Something to really “think about!

  7. Go AZ says:

    CA pensions are outrageous! Federal pensions are at the max only after 41+ years of service, and often off sets any Social Security benefits – no double dipping. It’s over the 3 highest of the last 5 years, and does not include overtime, night-differential, or accrued sick leave. For example – your daily mailman makes at most $58K per year in salary. After working the full 41+ years, he/she receives 80% of their pay. How many people do you think have worked for 40 years? And people who retire early (at 55) often get a decrease in benefits.

    1. nancy e says:

      PERS is offset by Social Security, just like federal civil service employees. So there is no double dipping there. What Brown is calling “double dipping” is the practice of hiring PERS retirees back to do another job. They get their pension AND salary. That needs to go, but it is very hard to talk city managers into accepting this when they just HAVE to hire this specific person.or other.

  8. Jim Stanton says:

    The only way this should be considered is if Gov. Moonbeam gives up his guaranteed retirement and enrolls in this plan.

  9. bugman says:

    Maybe that’s why Linda left him in Africa when he was Gov the first time. Nothing upstairs!!!! And, I did not vote for him,saw his first chaos!!

    1. bugman says:

      His dad,E G Brown did OK to a point,family ties nobody knowes about unless you are old, this state has problems and you can see by his signing of (dream act) how can they get a job if illegal anyway? gee, free money that won’t get paid back.And, I have never heard of a Mrs Brown????

  10. wgaf says:

    I misunderstood this story. I thought Brown was discussing about my irregular pen1s growth problems not the state’s growing pension problem. I stand not erected. Lo siento hombres.

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    3. wgaf says:

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      No one is saying your mama isn’t a $lut , puS$y dumbf**k and now they know the balls up your ass don’t make a difference.

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