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1/27/2012 10:53 AM
Attacks on your earned pension are heating up.
At a public hearing this week, opponents of the “hybrid” pension shift proposed by Governor Brown primarily highlighted the volatile, risky nature of defined contribution schemes.
“The 401k experiment hasn’t worked,” said SEIU spokesperson Terry Brennand. “Look at your own 401k? Are you ready to retire?”
Though proponents of shifting earned benefits into a shaky investment market say this will significantly reduce costs to the state, National Association of State Retirement Administrators Research Director Keith Brainard pointed out that savings are not likely to be great as the plan could legally only apply to new hires.
“A hybrid does not necessarily produce any more cost savings than any other plan,” said Brainard.
See KGO-TV’s coverage of the hearing: