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Public employees in California may have their pension benefits slashed due to the rollback of a longstanding rule in the state, Gov. Jerry Brown revealed in a recent budget briefing.
The California governor revealed that he has a “hunch” legal proceedings could pave the way for cuts to public employees’ benefits.
Flexibility - California - Rule - Brown - Briefing
“There is more flexibility than there is currently assumed by those who discuss the California rule,” Brown said during the briefing.
The “California rule,” which has been adopted by at least 12 states, protects public employees benefits from rollbacks.
State - Governor - Option - Pension - Cutbacks
He added that the state’s next governor “will have the option of considering pension cutbacks for the first time.”
As noted by Bloomberg, the California Public Employees’ Retirement System is the nation’s largest public pension, needing 68 percent of assets to cover its liabilities.
Officials - Taxes - State - Reserves - Attempt
Municipal officials have reportedly raised taxes and taken from the state’s reserves in an attempt to cover the cost believing that they weren’t able to tap in to public employee’s benefits.
However, with state and local governments across the country having a $1.7 trillion benefit deficit, the public employee pension is no longer sacrosanct.
Re-election - Brown - Host - Scott - Pelley
While running for re-election in 2014, Brown was asked by host Scott Pelley how he would handle the $300 billion pension deficit that existed at the time.
“Our pension funds have done quite well,” Brown said. “We’ll chip away at it.”
Fashion - California - Governor
In an almost predictive fashion, the California governor added...
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