[quote=EconProf]Gov. Brown has pretty much done the bidding of state employee unions and has thoroughly earned his reputation of being their lackey…until now. Looking at the details of his proposals, I’m impressed. Retirement at 67 instead of 55? Wow. Employees pay half into the system? Pension depends on last three years of pay, and no spiking with overtime or other gimmicks? Guys, this is a Nixon goes to China moment. Apparently Brown looked at the math and realized that the current system would blow up in his face and scuttle his chance for a second term.[/quote]
The problem herein is that Gov. Brown (a CALPERS or PERS reciprocal “retiree” himself), has realized that the *new* crop of young CA state/county/city employees (hired after 1994 or so) can’t even qualify for SS until age 73 so therefore “age 67” is now a “young” age to collect a public pension.
It is what it is.
Frankly, public employees in CA who are/were over age 45 at the time have been paying a great deal (don’t know the exact percentage) of their pay into the “system” since March of 2002. I took “deferred retirement” before that under a different system so don’t know the exact percentages of pay withdrawn and am not eligible for the “enhanced benefits” (enacted March of 2002).
I could believe that 50% of the eventual “retirement pay” would be deducted from a current employee’s wage/salary but NOT until age 50 (of an “active” employee).
Do you have any links for us in this regard, EconProf?
edit: I’m glad to hear that an “eligible employee” can no longer “spike” their retirement pay with “purchased” years in which they did not work (i.e. “broken svc”).
