A recent Sacramento hearing revealed a push by public safety agencies to sidestep pension reforms enacted over a decade ago, seeking to enhance retirement benefits despite California's staggering $352 billion pension deficit. This situation is exacerbated by Assembly Bill 1383 and AB 569, which could allow for even higher costs for new hires without addressing the current budget strains. As public entities now allocate roughly 20% of budgets for pension expenses, critics warn that these moves will only deepen the financial hole and reduce essential services to residents.
Critics might have mistaken this Sacramento hearing for one of those post-9/11 love fests where elected officials promised retroactive hikes to pension formulas without proper funding.
California has dug itself a pension hole some $352 billion deep, with public agencies now spending nearly 20% of city budgets on dramatically higher pension set-asides.
The bills proposed by Assemblymember Tina McKinnor and Catherine Stefani would allow agencies to circumvent pension reforms, potentially exacerbating the state's existing pension crisis.
The proposed reforms are particularly concerning as they would allow increased pension plans for public safety employees, who are already among the most costly categories, potentially worsens the financial strain.
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