CA: Governor touts plans to reform state pension system

San Diego Union -Tribune ^ | 2/10/05

[NormsRevenge]

SAN DIEGO – Gov. Arnold Schwarzenegger made a stop in San Diego today to push his plans to reform California's $171 billion pension system.

Flanked by two armored cars along San Diego Bay, Schwarzenegger said California's retirement plan is "bleeding our state dry."

The governor proposed revamping the California Public Employees Retirement System in his State of the State address last month.

He wants to change from a defined benefit to a defined contribution plan for new employees – a switch that must be approved by the state Legislature.

Under that plan, state workers would contribute to an investment account similar to the 401(k) plans common in the private sector.

According to Schwarzenegger, California's pension obligations have risen from $160 million in 2000 to $2.6 billion this year.

He said what's good for the state would also be good for San Diego, which faces a $1.3 billion deficit in its pension system.

"What San Diego needs is the same thing that California needs, a responsible, affordable, stable pension system," Schwarzenegger said.

"With a defined contribution plan in place for California, we won't have billion-dollar pension deficits sneaking up on us," he said. "We won't have cuts in services to finance our state retirements, and we won't have taxpayers left holding the bag for political giveaways up in Sacramento."

[doctor noe]

Agreed. However, the pension issue can be handled rather expeditiously and has widespread voter support. I'd prefer we cripple the unions first, then we can move on to tackling the far bigger issue of illegal immigration...it will be a long, hard fight.

[footballbat]

If we didn't spend so much freakin money in this state educating, medicating and generally donating to illegal aliens there would be no pension issue.

Oh, by the way I'm a state employee who does a job 90% of the folks in this state wouldn't have the intestinal fortitude to do - Corrections.

[footballbat]

Here Here!!!

If the goverator would spend half as much time and money trying to curb the illegal immigration issue as he does trying to take away my pension this state would be fiscally fixed almost over night.

The guy makes me ashamed to call myself a republican.

Mike

[doctor noe]

You have nothing to worry about. Pension reform will only affect new hires after 2007. Since the politicians don't have the "intestinal fortitude" to cut spending elsewhere, then the voters will mandate the end of CA's ridiculously unaffordable pensions. Talk about driving a stake through the heart of the employees' unions!