Pension boosts for California police, firefighters could spur increases for other workers

Assembly Bill 1383 would increase retirement benefits for California's police and firefighters. Unions argue it's affordable thanks to the state's public employee pension system reporting a fourteen point eight percent investment return last fiscal year. But CalMatters reports the bill echoes a costly precedent from twenty-seven years ago. Governor Gray Davis then approved pension increases supposedly covered by strong investment returns—until the Great Recession hit, leaving local governments unable to pay. Stockton, San Bernardino, and Vallejo all declared bankruptcy, partly due to escalating pension costs. The proposed increase is estimated to cost four point eight billion dollars, with annual employer contribution increases of two hundred thirty-three million dollars. The deeper risk, CalMatters writes, is that once police and firefighter pension ceilings are raised, other public-sector unions will demand identical treatment, pushing costs still higher in a state where some cities already contribute fifty cents to the pension fund for every dollar in salary for police officers.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton