Pension Reform Ballot Measures: Seeing Double
The proponents of a proposed pension reform ballot measure have
abandoned the original proposal and have instead split it into
two separate initiatives.
Counties will recall that The Voter Empowerment Act of 2016 received a less than favorable Title and Summary from the California Attorney General back in August. The advocates of the measure have now proposed a pair of measures.
The new Voter Empowerment Act of 2016 amends the California Constitution to require a vote by the citizens of a jurisdiction to add any new employees (defined as those hired on or after January 1, 2019) to an existing defined benefit plan. The measure would place those new employees, instead, into a 401K-style defined contribution plan. Employers would additionall be prohibited from paying more than half of the total cost of retirement benefits for new employees unless approved by voters.
The Government Pension Cap Act of 2016 would disallow employers from contributing more than 11 percent of base compensation for new employee retirement benefits and no more than 13 percent for new safety employees. All other costs, including those associated with unfunded liability, would be the responsbility of the employees unless approved by the voters of the jurisdiction.
Both measures currently await Titles and Summary from the Attorney General.