California’s Five-Alarm Pension Fire

Sacramento wants to roll back Jerry Brown’s 2013 reforms

WSJ editorial. Excerpts:

"Before the reforms, public-safety workers could retire at age 50 and receive a pension credit of 3% of their final salary for every year they worked."

"The 2013 reforms reduced the maximum pension credit for new hires to 2.7% and required them to work until 57 to receive it."

"Workers are also required to contribute half of the actuarial “normal cost” of their pensions"

"For every $10,000 that a state firefighter earns in compensation, the state pays $5,000 into the state pension fund."  

"Local governments are raising taxes to pay for ballooning pension costs."

[there is new] "legislation to roll back the 2013 reforms by letting public-safety workers retire earlier with bigger pension credits."

[which would] "also let unions collectively bargain with local governments to reduce worker pension contributions"

"Los Angeles firefighters make $213,600 on average. About a dozen last year made more than $300,000 in overtime alone. One battalion chief made more than $928,000 including overtime and benefits."