The CalPERS, California Public Employees' Retirement System building in Sacramento, California.
State Controller John Chiang is taking issue with parts of Assembly Bill 1987, which promised to put an end to pension spiking. Back in February, when the legislation was first established, it pushed to ban employees from tacking on extra pay benefits and unused vacation days to their final year’s salary in order to boost pensions. But now, according to Chiang, the bill has become so muddled with revisions that it would do very little to curb pension hikes. A spokesman in Governor Schwarzenegger’s office says he will not sign the bill as it currently stands because “it fails to truly address the problem of pension spiking.” Can the bill be ratified to prevent pension boosting from becoming legal?
Terry Brennand, Senior Government Relations Advocate, Service Employees International Union (SEIU)
Marcia Fritz, President, California Foundation for Fiscal Responsibility