WASHINGTON — The board for the state of California’s public pension fund voted in favor of about 100 temporary pay hikes, which will count toward calculating public workers’ pension funds hired since 2013.
Reuters reported that the move upset California Democratic Governor Jerry Brown, who is trying to cut the ballooning costs of public worker pensions to try to save the state’s financial solvency woes. But, he opposed only one specific pay increase that would allow these temporary pay increase to count as permanent income in pensions.
Calpers, the California Public Employees’ Retirement System, goes against Brown’s 2012 pension reform law Public Employees’ Pension Reform Act. It was supposed to alleviate the financial problems of California cities who are now starting to feel the budget pinch of retirement payments for their public workers.
Brown said, “Today Calpers got it wrong…This vote undermines the pension reforms enacted just two years ago. I’ve asked my staff to determine what actions can be taken to protect the integrity of the Public Employees’ Pension Reform Act.”
Calpers manages assets of $300 billion and whose system oversees over 3,000 city, state and local agencies (or simply, 3 million people in the state of California).