On Tuesday, California lawmakers announced a new plan that would restrict pension benefits for public employees. The plan, which would affect new workers, would raise the retirement age and limit annual payments. The governor said that the plan is necessary to lower costs and make the system sustainable for the future. Estimates for savings from the plan are around $36 billion over 30 years. While most of the changes would only affect future workers, the plan would require current state workers to pay 50% of their benefit costs, a provision which many state workers have already agreed to. The plan is expected to be voted on before the Legislature adjourns.
See "Public worker pension changes unveiled", Marisa Lagos and Wyatt Buchanan, San Francisco Chronicle, August 30, 2012