The Blog at CTA

Governor's Pension Plan Will Hurt Recruitment, Retention of Public Workers

On Tuesday, Gov. Brown unveiled a public employee pension reform package that contains some important changes for newly hired educators in California schools.
  1.  All changes apply to NEW CalSTRS members – those hired after the bill has passed and enacted into law.
  2.  All new CalSTRS members would be required to pay half of the normal cost of their retirement. The language is very unclear on the impact this would have for local school districts and school funding under Proposition 98.
  3. Changes the formula for determining retirement benefits from 2% at age 60 to 2% at age 62, and from 2.4% at age 63 to 2.4% at age 65.
  4. Eliminates the ability of teachers width more than 25 years of service to use their single highest year salary when calculating retirement benefits. All future teachers would be required to use their three highest years of salary.
The changes and others in the governor's plan  would undermine the state's ability to recruit and retain teachers, firefighters, police officers, and other key employees.

The California Teachers Association has sent a letter of opposition to the Legislature, urging lawmakers to vote against the bill containing the governor's proposal, AB 340.

More information about the measure can be obtained from the CTA letter of opposition (below).
















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