California Democratic Leaders Say It's Time for Pension Reform
Senate President pro Tem Darrell Steinberg has decided that now is not the time to change California’s newly-approved process for cities and counties to enter into bankruptcy.
He’s decided to kill the legislation authored by a Democratic Assembly member. The bill would have loosened deadlines on negotiations with creditors and labor groups. But Steinberg says it’s time now for the legislature to focus elsewhere.
"We don’t need to have another fight or argument on this same front, we’re trying to accomplish pension reform and that’s where we want the focus to be an not on something that is a distraction.”
Democratic legislative leaders are trying to come to an agreement on several key pension issues; including whether or not to offer a 401-k style plan that would supplement benefits for new employees. They’re also considering whether to raise the retirement age from the current age of 55.