Sen. Cannella Issues Statement on Governor Brown's Pension Reform Proposal

Thursday, October 27, 2011

State Senator Anthony Cannella (R-Ceres) today issued the following statement in response to the pension reform proposal Governor Brown released:

“The reform measures Governor Brown proposed today largely mirror those my colleagues and I proposed earlier this year in Senate Constitutional Amendment 13, and I’m encouraged by his willingness to embrace our efforts to craft a sustainable, actuarially sound pension system by pursuing reforms that end pension abuses, reduce unfunded pension liabilities and control ongoing costs.

“Clearly, we must act now to fix our state’s broken pension system, and I remain willing to work with Governor Brown and legislative Democrats to craft a comprehensive pension reform plan to be put before the voters. The Governor’s proposal appears to be a step in the right direction – and one that I would support. I urge Governor Brown to put these proposals before the Legislature immediately, so we can vote on the measures as he laid them out today.”

Earlier this week, Sen. Cannella, Sen. Tom Berryhill, Sen. Bill Emmerson and Sen. Tom Harman sent a letter to the members of the Joint Legislative Conference Committee on Public-Employee Pensions urging them to pursue the pension reform measures outlined in SCA 13, which include the following:

  • Creates a mandatory defined-benefit/defined-contribution hybrid pension plan for future employees that aims for 75 percent wage replacement
  • Caps pension amounts for employees who participate in Social Security at $106,000
  • Permits public employers to prospectively change retirement benefits for any member prior to retirement
  • Increases full vesting for post-retirement health care benefits from 20 years to 25 years
  • Defines final compensation for new employees as the highest average annual compensation during a consecutive five-year period
  • Prohibits employees from working for a public entity while collecting a pension from that same public entity
  • Requires implementation of this measure and future changes to salary and benefits by a two-thirds vote

For more information about the proposals outlined in SCA 13, please click here to view the fact sheet.