A pension bill that has been in the works for months can officially go into effect Jan. 2013 after Gov. Jerry Brown signed it this morning.
Assembly Bill 340, as the pension legislation is called, will make changes to the state pension system, affecting state and local government employees.
It aims to cut public pension costs, and is estimated to save $146 million for the state in the coming fiscal year, according to the Sacramento Bee.
Primary changes under the new pension overhaul include increasing the retirement age, capping benefits and requiring state employees to pay at least half of their pension costs, according to the Sacramento Bee.
“This is the biggest rollback to public pension benefits in the history of California pensions,” Brown said in a statement. “Under the new rules, employers and employees alike are going to contribute their fair share of the costs, resulting in a more sustainable system.”
The state Legislature passed the reform in early September, despite opposition from Republican legislators who argued that the reform was flawed and pandering to voters.
The bill also met opposition from union workers who argued that the reform would put organized labor “on its heels,” as stated by Assemblyman Sandre Swanson (D- Alameda).
Compiled by Katherine Hafner, Bruin senior staff.