The Legislature has begun public hearings to address a $71 billion funding gap in the pension system for K-14 teachers. Without an increase in contributions, CalSTRS predicts its assets will be depleted in about 30 years.
San Jose Mayor Chuck Reed is mounting a major attack on educators’ pensions. He has filed a voter initiative with the Secretary of State and may start collecting signatures in early 2014 to qualify it for the November ballot.
Workers not yet hired will take biggest hit under law passed by legislators with no input from public employee unions
A new law passed in the final hours of the legislative session makes sweeping changes to public employee pensions that impose most of the changes on workers not yet hired, creating a two-tier system in the workplace where two groups of workers doing the same work receive different retirement benefits.