“Here in Sacramento, pension reform must be our number one priority.”
Schwarzenegger’s backing a bill by Senate GOP Leader Dennis Hollingsworth that would require most employees to work ten years longer to qualify for full retirement benefits. It would also increase the amount state workers contribute to their pensions. The changes would apply to new hires, not current employees. The Governor says the issue must be addressed this year:
“I refuse to pass this crisis on to the next Governor or to the next legislature, because if we don’t act, if we continue to sweep those problems under the rug, we’re just going to be piling more and more debt onto our children and our grandchildren.”
CALPERS, the state’s largest public employee pension fund, argues the Stanford study is flawed and the real gap is much smaller.