CA Governor Proposes Pension Reform Measures

April 1, 2011 ( – California Governor Edmund G. Brown Jr. has released the actual bill language of seven separate pension reform measures, and announced five other specific pension reforms that he is developing.

His proposal includes measures to eliminate the opportunity, for all current and future employee members of all state and local retirement systems, to purchase additional retirement service credit, and to prohibit all California public agencies from suspending employer and/or employee contributions necessary to fund the normal cost of pension benefits.  

According to a press release, under other measures: 

  • All California public agencies would be prohibited from making employee contributions that fund the normal cost of employee retirement benefits in whole or in part; 
  • All California public agencies would be prohibited from granting any retroactive pension benefit increases, such as benefit formula improvements that credit prior service; 
  • Final compensation for new employees would be defined as the highest average annual compensation during a consecutive 36 month period; 
  • Compensation means normal rate of pay or base pay; and 
  • Those who commit a felony related to their employment would get no pension benefit payment. 


The proposals under development include: 

  • Impose pension benefit cap, 
  • Improve retirement board governance, 
  • Limit post-retirement public employment, 
  • Hybrid option, and  
  • Address CalSTRS unfunded liability.