Attorney General No.
Secretary of State No.
Prohibits state and local agencies, other than the University of California and its laboratories and affiliates, from providing defined benefit pensions (benefit determined by age, years of service, and salary) to employees hired after 7-1-07. Eliminates death, disability benefits for such employees. Thereafter, permits only defined contribution plans (benefit determined by contributions, earnings, minus expenses). Limits agency's contributions to 6% of employee's salary (9% for police, firefighters, and those not contributing to Social Security). Requires employee contribution when employer contribution exceeds 3% of salary. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Over the long term, major reduction in state and local government retirement costs for employees hired after July 1, 2007, offset to an unknown extent by increased costs for other types of employee compensation. In the shorter term, unknown net impact on public employer costs related to the closing out of existing defined benefit plans. The fiscal effect would depend on the decision of both retirement boards and existing government employees.
Failed to Qualify
Prohibition Against Defined Benefit Public Pensions. Exception for University of California. Initiative Constitutional Amendment and Statute. California Initiative 1134 (2005).