SACRAMENTO, CA - Gov. Jerry Brown's 12-point plan to overhaul California's pension system is about to get some scrutiny Thursday.
A pension reform conference committee will hold a hearing at the Capitol at 1 p.m.
If approved, the plan could be a game changer for the state's 1.6 million public employees and retirees.
The plan would:
- Prohibit pension "spiking"
- Switch pension programs from defined benefits to a 401K savings plan for new hires
- Raise retirement age from 55 to 67
The plan could save California $900 million annually. However, unions intend to fight any cuts to retirement benefits.
"I think people believe that change needs to happen but I don't think that means throwing out the entire pension system for a new one which benefits wall street," SEIU's Terry Brennand said.
Brown's 12-point plan will require approval by the legislature and voters.