Public employee retirement benefits.
If enacted, ACA15 would significantly affect how pension plans are structured for new government employees. Specifically, it stipulates that government employers cannot pay more than half of the total cost of retirement benefits for new hires unless voters approve a higher contribution. Additionally, it prevents retirement boards from imposing any financial conditions related to closing a defined benefit pension plan without voter approval. This could help curb the surging pension costs observed in recent years, which, according to analyses, threaten to crowd out funding for essential services.
Assembly Constitutional Amendment No. 15, introduced by Assembly Member Brough, seeks to amend the California constitution regarding public employee retirement benefits. The bill aims to address rising costs associated with pensions and ensure that any changes to pension plans affecting new government employees are subject to voter approval. Under this legislation, a government employer cannot enroll new employees in a defined benefit pension plan or enhance employee benefits without securing the consent of the electorate within the jurisdiction.
The legislation has highlighted a contentious debate surrounding public sector pensions, balancing the need for sustainable government finances with the rights and benefits of employees. Proponents argue that without such reforms, escalating pension liabilities will compromise critical public services. Critics, however, may contend that this restricts local governance and impairs the ability to negotiate competitive benefits for public employees, potentially affecting recruitment and retention of talent in the public sector.