California’s New Pension Plan Unveiled

SACREMENTO, Calif. — California Governor Jerry Brown has unveiled a pension plan that could save the state billions by requiring public workers to pay more toward their retirement.

Under the plan, current and future public employees would pay half of their pension costs. Pensionable salaries would be capped at about $110,000.

The bill also increases the retirement age by two years for all new employees. They would have to work until age 67 to receive the maximum benefit.

Governor Brown estimated the plan would save the state up to $30 billion over the next three decades. If approved, the new terms would take effect January 1st.