Gubernatorial Candidates Talk Pension Reform
SACRAMENTO, Calif. (KCBS) _ The controversy over the Southern California city of Bell's highly-paid city officials has brought the bigger issue of out of control government spending to the forefront.
State Attorney General Jerry Brown said his office has launched an investigation into the Bell salary scandal after a Los Angeles Times article revealed the city manager was making $800,000 per year and the police chief $400,000.
"We need caps on these salaries," said Brown. "I would propose as I did when I was mayor of Oakland, that salary increases for a councilman be subjected to a vote of the people."
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The Democratic gubernatorial candidate also said this week that the retirement age for state workers should be raised from 55 to 60, but only for new hires.
"As far as the existing pensions, they do run into this issue of vesting. There's constitutional issues," said Brown.
Brown's opponent in the gubernatorial race, Republican Meg Whitman said she wants the retirement age for current workers raised even higher to age 65.
Under her plan, new hires wouldn't even get pensions, but would instead be eligible for 401K-type plans.
"It is not fair to ask hardworking Californians to support these very generous pension programs," Whitman said. "And we face a $100 billion unfunded pension and health care liability in California."
Governor Schwarzenegger said he won't sign a new spending plan without pension reform included in it.
