The state's nonpartisan analyst on Tuesday called Gov. Jerry Brown's public pension proposal a bold first step for controlling the high cost of retirement benefits and urged lawmakers to make significant funding and benefit changes.
The Legislative Analyst's Office commended Brown's plan to shift more of the financial risk for public pensions to employees.
The plan released last month by the Democratic governor calls for increasing the retirement age to 67 for new, non-public safety employees and having local and state workers pay more toward their retirement and health care.
It also would put new workers in a hybrid plan with a 401(k)-style vehicle.
"We view the governor's proposal as a bold starting point for legislative deliberations - a proposal that would implement substantial changes to retirement benefits, particularly for future public workers," the report stated.
Brown has said he wants the Democratic-led Legislature to tackle the issue. Senate Republicans are expected to urge Brown to call for a special legislative session.
According to the analysis, the governor, lawmakers and voters need to make significant changes because the public has lost trust in the government's ability to effectively manage taxpayer money.
