Former Los Angeles Mayor Richard Riordan has filed papers to launch a signature-gathering campaign that would place a pension reform initiative on the city’s May ballot.
The Los Angeles City Council passed a pension reform plan in September, which is expected to save between $30 million and $70 million over a five-year period. But Riordan has been critical of the city’s pension efforts, which he contends do not go far enough.
Riordan’s “Fair Share Pension Reform Act of 2013” would go much further than the city’s pension reform plan.
Under the plan, current employees would contribute to their pension benefits and new workers would be enrolled in a 401(k)-style system with a maximum 10% contribution from the city.
Billionaire Eli Broad and attorney David Fleming are reportedly helping with the effort.
Riordan said that if no major changes are made within the next five years, 100% of the city’s budget will be dedicated to paying for pensions and police and fire services, according to the news report.