The California Legislature won’t act on pension reform ahead of its summer recess.
Reform of public employee pensions at the state and local government level has been a pillar of Gov. Jerry Brown’s agenda this year. But lawmakers failed to agree on specifics of the Democratic governor’s proposed 12-part plan ahead of their two-month break.
State Senate President Pro Tem Darrell Steinberg, D-Sacramento, said legislators would work with Brown over the recess to find a solution.
“Rumors of a breakdown in negotiations over pension reform are greatly exaggerated,” Steinberg said in a statement Tuesday.
In October, Brown proposed pension reforms that included equal contributions for all employees and employers.
Outside of public safety, the proposals would raise the retirement age to 67 for new hires. They also would create a “hybrid” defined-benefit plan for new employees.
At the time, state finance director Ana Matosantos said the plan would save California between $4 billion and $11 billion over a 30-year period.