Max Whittaker/Getty Images
California Governor Jerry Brown announces his public employee pension reform plan October 27, 2011 at the State Capitol in Sacramento, California.
Jerry Brown rolled out his pension reform plan yesterday. The Patt Morrison Show did an entire segment on it. The upshot? it's a humdinger. The New York Times sums it up:
Mr. Brown called for raising the retirement age of new employees who do not work in public safety to 67 from 55. He said employees should pay up to 50 percent of their annual pension costs. To reduce the financial exposure of the state, he said future pensions should be a hybrid of the traditional pension model and a 401(k).
To deal with what have been widely seen as abuses of the retirement system, Mr. Brown said the pensions of all new employees should be based solely on their regular salaries, not taking into account any overtime or bonuses. For existing employees, he said the retirement benefits should be based on an average of the last three years’ salary.
He also said that state employees should be barred from double-dipping: retiring, taking pensions and then taking on another state job.