The California Foundation for Fiscal Responsibility recently announced that it has filed two pension and retiree health-care reform initiatives with the California Attorney General’s office. The measures would alter the formulas used to calculate state and local government employee defined-benefit pensions for future employees, offering a lower “tier” of benefits to these employees and thus reducing pension costs to state and local agencies… The CFFR initiative deserves serious consideration for the fact that it would represent an improvement over the status quo, but if the state is to truly effectively tackle the structural problems and sustainability of its pension system, it must learn the lesson of the private sector and switch to a defined-contribution plan that offers compensation comparable to that received by private-sector workers.

Read full article [here].
by Adam Summers, The Business Journal.

Posted: December 10th, 2009, by: admin. Categories: . Awaiting Comments.