SACRAMENTO, Calif. (AP) — With election politics in play, Gov. Jerry Brown on Tuesday announced systemic reforms to save billions of dollars in California's underfunded pension systems but dropped key changes he had sought to avoid a showdown with labor allies.

As a result, pension reform advocates said the Democratic proposal fails to address the long-term costs of the state's pension liabilities, largely by leaving benefits for the state's more than 200,000 employees unchanged without contract changes negotiated with unions.

The reform deal does not include putting new government workers in a hybrid system that includes a 401(k)-style plan, greater independence for the board that oversees the state's main pension fund, or a reduction in retiree health care costs, which are skyrocketing.

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