LAO Deals a Blow to Pension Measure’s Chances

July 29, 2015

By Steven Maviglio, Fox & Hounds
July 29, 2015

The Legislative Analysts Office may have dealt the death knell to an effort to slash the retirement security of California’s teachers, firefighters, peace officers, bus drivers and other public employees this week with a candid assessment of its impact.

In its analysis of the measure, being advanced by former San Jose Mayor Chuck Reed and former San Diego City Council member Carl DeMaio, the no-nonsense LAO concluded “There is significant uncertainty as to the magnitude, timing, and direction of the fiscal effects of this measure and its effects on current and future governmental employees’ compensation.”

It said the measure would likely be the subject of legal battles because of the massive uncertainty about its impact.

The LAO also noted:

  • Existing employees (not just new ones) could see their retirement security eliminated; 
  • Death & disability benefits for firefighters, peace officers, and other public employees could modified or eliminated; 
  • Collective bargaining would be threatened; and 
  • Government employers would likely have to increase other benefits to attract and retain employees.

Read the full op-ed from Fox & Hounds here.