From SF Gate:
Gov. Jerry Brown announced a compromise with Democratic legislative leaders on changes to pension benefits for new public employees Tuesday, an agreement that includes legislation to cap pensions, curb pension spiking, increase to 50 percent the amount employees contribute to their retirement benefits and raise the retirement age.
Instead, Democrats and the governor agreed to put a hard cap on the amount of compensation that can be used when calculating someone’s retirement pay. Currently, there is no limit on the pay by which a public employee’s pension is calculated and some pensions run as high as $500,000 a year.
For public employees participating in Social Security, the proposed cap would be based on the Social Security wage limit, which is currently $110,100 a year. Public workers not paying into Social Security would have pensions based on a salary of up to 120 percent of the Social Security wage limit, or $132,000 a year
Public employee unions, as expected, expressed anger at the proposed changes. Dave Low, chairman of a coalition that represents 1.5 million public employees and retirees, said the proposal will hurt “all Californians” by making it harder to attract and keep teachers, police officers and firefighters at work .
— Jerry Brown (@JerryBrownGov) August 28, 2012