Governor Edmund G. Brown Jr. will tonight ask Los Angeles business leaders to stand with him on two major priorities for 2012: passing his balanced budget plan and persuading the legislature to enact his 12-point pension reform proposal.
He will deliver the call to action during a speech at the Los Angeles Chamber of Commerce 2012 Inaugural Dinner in Los Angeles.
"The numbers just don't add up," said Governor Brown of the public pension system. "Benefits, contributions and the age of retirement don't reflect today's realities, putting taxpayers on the hook for huge costs in the future. The cracks are showing and this dam will burst unless the legislature gets serious and takes urgent and decisive action."
Governor Brown's pension reform plan, introduced in October 2011, will apply to all California state, local, school and other public employers, new public employees and current employees as legally permissible. The plan's 12 points are:
1. Equal sharing of pension costs between all employees and employers
2. Establish a "hybrid" risk-sharing pension plan
3. Increase retirement ages
4. Require three-year final compensation to stop pension spiking
5. Calculate benefits based on regular, recurring pay
6. Limit post-retirement employment
7. End felons' pension benefits
8. Prohibit retroactive pension increases
9. Prohibit pension holidays
10. Prohibit purchases of service credit
11. Increase pension board independence and expertise
12. Reduce retiree health care costs