Budget plan targets $1.5 billion in state worker compensation cuts
The Budget Conference Committee has released an overview of the 2010-11 budget plan that GOP and Democratic leaders in the Legislature are putting up for a vote this week. The 8-page document, which you can read here, is thin on specifics, but a few items regarding state workers stand out:
State Employees. The budget package reduces spending for state employees by about $1.5 billion consistent with collective bargaining agreements that have already been reached or are in negotiation. This is $500 million less than what the Governor has proposed.
Rolls Back SB 400 Pension Benefits. New state employees' retirement benefits would be returned to the pension benefit levels that existed prior to the adoption of SB 400 (Chapter 555, Statutes of 1999) as detailed in the chart below:
Ends Pension "Spiking." Requires three-year final compensation method of calculating benefit levels for new state employees who are not already under this calculation method.
Transparency. Requires additional analysis and oversight of CalPERS' actuarial assumptions.
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