Attorney General No.
Secretary of State No.
Prohibits state and local public agencies, including school districts, state universities, from providing defined benefit pensions (benefit determined by age, years of service, salary) to employees hired after July 1, 2007. Eliminates death, disability benefits for such employees. Thereafter, permits only defined contribution plans (benefit determined by contributions, interest, investment earnings, minus fees and expenses). Limits agency's contributions to 6% of employee's salary (9% for sworn police officers, full-time 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 decisions of both retirement boards and existing government employees.
Failed to Qualify
Prohibition on Defined Benefit Public Pensions. Alternative Plans. Initiative Constitutional Amendment And Statute. California Initiative 1082 (2005).