Pension Reforms in the Golden State

Governor Jerry Brown signs into a law a bill that brings big reforms to California’s public employee pension system. The highlights include caps on pensionable salaries at $110,000 a year, a requirement that new employees pay for at least 50% of their pensions, and in increase in the mandatory retirement age. Many Republicans support the changes, but say pension reforms should have been even bigger. Public employee unions are angry, saying they were never seriously consulted about the reforms supported the Governor Brown. But its hoped pension belt-tightening will save California tens of billions of dollars in the coming decades.