California Legislature Passes Bill to Increase Public Safety Pensions, Raising Fiscal Concerns
The California Legislature has passed Assembly Bill 1383, a measure that would increase pension benefits for public safety workers, including police and firefighters. The bill received overwhelming bipartisan support, passing with a unanimous 33-0 vote in the state Senate and a nearly unanimous 70-2 vote in the state Assembly. This legislation is currently awaiting Governor Gavin Newsom's signature. According to analyses by legislative staff and the Department of Finance, the bill could cost state and local governments over $8 billion. The Department of Finance has expressed opposition to AB 1383, stating that it partially undoes the reforms and fiscal safeguards established by the Public Employee Pension Reform Act (PEPRA) of 2012. The department also noted that the bill would significantly increase state and local government contributions to safety plans and could create equity issues between safety and non-safety members. This move echoes a similar pension increase in 1999, which led to significant unfu...
