LOS ANGELES (CBSLA.com) — Gov. Jerry Brown held a news conference Wednesday morning to sign legislation to cut pension costs.

The new changes, which will affect workers hired after January 1, are expected to save state taxpayers billions of dollars in the long run.

The retirement age for new employees will increase, there will be a cap on annual payoffs, and workers who are not contributing half of their retirement costs will be required to pay more.

The Governor described the changes as “the best deal he could get” while the Republican and Democratic parties remain polarized on the issue.