A group of four Senate Republicans issued a “list of demands” yesterday outlining dozens of drastic changes they want to see implemented in order to sign off on the state's budget.

With a constitutionally mandated budget deadline just one day away (June 15), the long list of asks has led some to declare that Senators Anthony Cannella, Tom Berryhill, Bill Emmerson, and Tom Harman are “holding the state budget hostage.”

While the list contains stipulations that effect a wide range of public services, those with regard to state employee pensions are perhaps most alarming.

Here are just a few of those demands:

50/50 employee/employer pension contribution
Hybrid Pension (Mandatory w/ Opt-Out provision): New employees are to be offered a hybrid pension plan that consists of a lower defined benefit plan and a defined contribution component. The costs of the new DB plan will be shared equally between the employer and employee. Employees may elect to participate in the defined contribution component only. (Goals: Reduce government costs; mitigate taxpayer risks of future funding obligation/unfunded liabilities; provide employees with a sensible retirement plan that is more in line with the private sector and achieves about 75% salary replacement after taking into consideration social security benefits).

Employer can change benefits for any employee prior to retirement
Permits changes to future unearned benefits: Permits public employers to prospectively change the retirement benefits for any member prior to retirement. (Benefits that have been promised but not yet earned).

Five year increase in vesting
Vesting: Change from partial at 10 years and full at 20 years to partial at 15 years and full at 25 years.


The full list of demands is available online: http://www.scribd.com/doc/57789253/110613-ReformProposalSpecifics

 
Further reading:

Four Senate Republicans detail California budget demands
Senate Republicans release pension overhaul demands
Unions challenge 'pension-gutting agenda' amid budget talks