As pension reform is debated and ultimately decided in the Capitol today, its implications reach into communities throughout the state, as the new terms will be phased in on many local agency pension system as well.
Only charter cities and counties will be exempted from the new pension formulas and funding, should they be approved. But in places like Riverside County, that still means that tens of thousands of employees and future employees could see their benefit packages altered. For current employees, the new pension reform package proposes increasing the employee share of compensation to a 50-50 split.
Little by little, as more details emerge about the package, local government associations are embracing the reforms. Far from perfect they may be, for many local governments, outsourcing the difficult choices associated with pension reform makes it more palatable. Changes must be instituted over the next five years.
From the Press Enterprise:
There are thousands of local government agencies around the state, employing hundreds of thousands of workers covered by a variety of retirement plans.
By Friday, the Legislature will consider imposing its plan to overhaul public-employee pensions on them.
Read the full article here.