View the LAO video on Jerry Brown's pension reform plan
Posted 08 November 2011 - 11:43 AM
"We view Gov. Brown's (pension) proposal as a bold one, and one that should very carefully considered by the Legislature," says the LAO's Jason Sisney.
Still, he says, "we don't understand some key aspects" of Brown's proposals, particularly how putting new employees into a hybrid plan or pushing back new hires' qualifying retirement age would work.
The LAO also has questions about how pensions could be capped and notes that the unfunded liabilities of the CalSTRS and UC pension systems aren't addressed.
"In our view ... it doesn't really make a whole lot of sense to change all of these (UC and CalSTRS) benefits substantially and not think about how they're going to be funded into the future," Sisney says.
And, Sisney notes, the governor's plan is silent on retiree health benefits for local government workers.
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