Tuesday, August 28, 2012
California Governor Jerry Brown has announced a deal that would make some major changes to the state’s under-funded pension system.
California Governor Jerry Brown has announced a deal that would make some major changes to the state's under-funded pension system.
Brown appeared Tuesday in Los Angeles and called it a "big day for California voters and California taxpayers."
"This is not easy," said Brown. "We've been negotiating for months up in Sacramento, but people have come together in the legislature to bite the bullet and to clean up what has been a big mess."
The deal between Brown and Democratic legislative leaders would cap salaries eligible for public pensions at $110,000 dollars. It would also raise the minimum retirement age while reducing payouts, and eventually require employees to pay at least half of their pension fund contributions.
A vote on the deal is expected on Friday - the final day of the two-year legislative session.