Brown Signs 'Biggest Reform Ever' For Calif. Pensions Into Law
LOS ANGELES (CBSLA.com) — California Governor Jerry Brown signed into law on Wednesday sweeping pension reforms that he defended as benefiting both workers and taxpayers.
KNX 1070's John Brooks reports Brown signed the legislation at the Ronald Reagan State Building in downtown Los Angeles.
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The legislation mostly affects state and local government workers hired after Jan. 1, 2013, and requires them to work an extra two years before retirement.
Brown acknowledged that the bill — which caps the annual payout at $132,000 for new employees — may not be perfect, but said the move will save local and state taxpayers up to $80 billion over the next 30 years.
"This is big, because it's got Republicans and Democrats agreeing together," said Brown. "It's the biggest pension reform ever in the history of the California pension system."
The 74-year-old governor admitted, however, that it might be easier for him to work beyond the current retirement age than an average Caltrans asphalt laborer.
"Some work, like mine, you're working your mouth, maybe your mind, but not your body," said Brown.
The legislation will also eliminate numerous abuses of the system and require workers who are not contributing half of their retirement costs to pay more.
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