“With California’s pension problem getting worse every year, I am introducing three new bills to both reduce the future burden on taxpayers and protect retired public employees’ vested funds. Gov. Jerry Brown emphasized the problem in his new budget proposal for fiscal year 2018-19, slating a whopping $9.3 billion just to pay for current pension obligations. That cost is only going to increase and divert money from other priorities unless we make it better.”
“Senate Bill 1031 is the first bill. It would protect the solvency of public-employee pensions by making sure each yearly COLA – cost-of-living-adjustment – isn’t so large it tips the underlying fund into insolvency. If a pension system is funded at less than 80 percent, then the COLA would be suspended until the funding status recovers.”
“The requirement would prod pension boards and policymakers to ensure pensions are adequately funded and don’t end up being cut sharply in an emergency, as happened recently to Detroit’s pensions. Not just taxpayers, but state employees and retirees should be the biggest supporters of Senate Bill 1031.”
This article was released by the Office of Senator John Moorlach.