SAN FRANCISCO — California’s new pension reform legislation is a significant step forward for state and local government finances in the Golden State, though the changes will take a long time to have a significant impact and many unknowns remain, rating analysts say.

“Overall, the pension reform legislation appears to contain material changes to the state’s pension benefit regime, but with incremental or limited budgetary or fiscal implications in the near term,” said Standard & Poor’s analyst Gabriel Petek. “In the bigger picture, it is one more example of the state’s credit quality taking a step in a stronger direction.”

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