California has been hard hit since the economy took a dive in 2008, with at least one city declaring bankruptcy and others considering it. The state is struggling to find ways to cut expenses. Pension reform tops the list of items that would save both local and state governments money.
California Gov. Jerry Brown made pension reform a priority. In October of last year, he came up with a 12-point proposal to help solve the pension crisis. The Senate Republican Caucus has taken on the duty of making Brown’s proposals a reality.
“We stand behind defined benefit plans as an efficient way to deliver a secure pension,” she said. “We just have to wait and see. Funding depends on the markets. We did recently lower our discount rate to increase the stability of the fund. It will increase our unfunded liability, but does make our fund more stable.”
She added that “everybody wants a sustainable pension system that works for members and employers that will be here for the long haul.”