Two Tiers of Pension Benefits for Calif. Public Employees
Wednesday, December 26, 2012
A higher retirement age. A lower pension check when he or she reaches that age. And a cap on the salary that can be used to calculate a pension. Those are all changes in benefits that will affect public employees hired after January 1st. And that's why a new state worker named Elizabeth, who declined to give her last name, says she's glad she started her job in 2012 - rather than 2013.
Elizabeth: "When I wasn't a state
employee, I thought that the pension packages were way too
generous. Now that I am a state employee - and I went from
contracting to state employee, so I went from making $75/hour down
to making $35/hour. And so I sure as heck feel like I have
earned that pension in taking that cut."
Some of the changes will affect current employees too - like the requirement they pay half their pension costs. The law is projected to save tens of billions of dollars over the next few decades.