California Bill Offers Earlier Retirement, More Pensions for Police and Firefighters

TL/DR –

California lawmakers have passed a bill offering more generous retirement perks to the state’s police and firefighters. The bill allows these individuals to retire with full benefits at age 55 instead of 57 and increases their maximum accrual rate. However, some government agencies are urging Governor Gavin Newsom to veto the bill due to the potentially high costs in pension payouts.

Summary

California police and firefighters could retire earlier and earn more generous pensions under a bill lawmakers sent to Gov. Gavin Newsom. However, government agencies are urging him to veto the potentially costly bill.

While Gov. Gavin Newsom has yet to sign the expansion of pension benefits for California police and firefighters, unions are already negotiating contracts. The bill would allow public safety employees to retire with full benefits at 55, up from 57, and increase the maximum accrual rate to 3% per year of service from 2.7%.

The Senate passed the measure with a vote of 33-0, and the Assembly passed it with a majority of 70-2.

If Newsom signs Assembly Bill 1383, it will be the first enhancement of public employee pensions since former Gov. Jerry Brown passed a law requiring longer work for full benefits and increased paycheck contributions for retirements.

The new retirement bill could require government employers and employees to contribute an additional $282 million to CalPERS. The finance department, which reports to Newsom, recommended that lawmakers reject the bill.

Cities and Counties Oppose Pension Expansion

Local government agencies in California opposed the measure and are hoping Newsom will veto it. However, unions were confident the measure would pass.

Unions Support Gov. Newsom

This bill would benefit public safety unions, a crucial ally to Newsom. The unions stated that revising the pensions has been a top legislative priority. Union leaders are concerned about a potential veto from Newsom.

If the bill does not get past Newsom, law enforcement groups “would have to have serious conversations regarding his veto” if Newsom seeks the presidency.

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