March 21 (Bloomberg) — Postponement of a California ballot measure that could help contain the rising cost of public employee pensions is a "credit negative" for municipalities, Moody's Investors Service said.
Proponents, led by San Jose Mayor Chuck Reed, delayed the measure until 2016 to improve its chances of passage, even as costs are projected to rise for thousands of local governments that participate in the California Public Employees' Retirement System, Moody's said yesterday in a research note.
"Adoption of this pension reform measure would have amended the state's constitution and provided local governments with a significant measure of additional pension cost flexibility," Moody's said.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
