Agency Eyes Revamp of All California Employee Pension Programs

By Staff Report

Mar. 2, 2011

A California commission has recommended a complete revamp of pension programs covering the state’s employees, citing their “crushing” costs to the state and taxpayers.

The Little Hoover Commission, a bipartisan and independent state agency, in late February proposed a new pension model offering a lower-cost—compared with plans now offered—defined benefit plan in conjunction with a 401(k)-style plan in which the state would match employee contributions up to a certain percentage of pay.

Such an arrangement has been in place for federal employees hired since the late 1980s.
The commission also recommended a cap of $80,000 to $90,000 in the amount of salary that can be used to calculate an employee’s pension benefit, a ban on retroactive benefit increases, and setting benefit eligibility ages that do not encourage early retirement.

“The stakes are too high to continue making temporary changes at the margin,” the commission stated.  

Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

What’s New at

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog


What is Earned Wage Access (EWA)? A Few Considerations

Summary Earned wage access (EWA) programs are an increasingly popular way for employees to access their...

benefits, earned wage access products, payroll, time and attendance

workforce blog


EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog


Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness