Governor Jerry Brown unveiled his plan for overhauling public retirement benefits. While Republican lawmakers are cautiously optimistic, Brown received a more tepid response from Democrats who hold a majority of seats in the state assembly and senate.
His proposals include raising the retirement age from 55 to 67 for most future state workers and requiring all workers, both future and current, to pay at least half their pension cost.
"That is the most immediate and the biggest change that will make our pension plan more solvent," said Governor Brown.
The governor also wants to convert to hybrid pensions which combine a traditional guaranteed monthly benefits with 401(k)-style investments, subject to the ups and downs of the market.
The first step for the governor is to submit his plan to a joint assembly-senate conference committee. If the legislature doesn't go along, Brown says he'll consider taking his proposal directly to the voters.
