Tapping in to public outrage over gold-plated public employee pensions, the California Foundation for Fiscal Responsibility filed two reform initiatives with the state Attorney General’s office on Thursday.
“With more than $200 billion in retirement debts and skyrocketing costs crowding out the investments we need in education, health care, transportation, public safety and the environment, it is time for a statewide solution to our retirement benefits crisis,” said foundation president Marcia Fritz in a prepared statement.
“By requiring all new non-safety public employees at all levels of government to work until their Social Security retirement age for full benefits and ending the politicians’ raids and abuses of public pension funds, California public agencies can offer secure retirement benefits that are fair for taxpayers and their employees,” she said.
The Public Employee Benefits Reform Initiative would apply a benefits cap to the benefit plans offered to all new state, local government, school district, university and special district employees beginning July 1, 2011.
Early estimates show the initiative would save more than $1 billion the first year, and $500 billion over 30 years, as new workers replace those who retire.
How? By raising the age at which workers can retire with full benefits, and by limiting guaranteed benefit formulas to 75 percent of pay for a full career’s work. ”Significant additional savings would come from requiring new employees to wait until they reach MediCare eligibility age before supplemental retiree health benefits begin,” the foundation says.
The “Ten Commandments” of both versions of the initiative include: Read the rest of this entry »
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