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Benefits October 1, 2010
CA Governor Says No to Pension Caps
October 1, 2010 (PLANSPONSOR.com) – California Governor Arnold Schwarzenegger has vetoed a measure barring employment contracts with automatic pay raises and legislation that would cap pensions.
Reported by Rebecca Moore
The Los Angeles Times reports the governor also vetoed two bills aimed at ending pension spiking. The bills were introduced in response to the city of Bell pay scandal, in which an investigation by California Attorney General Jerry Brown found exorbitant salaries and other compensation of City of Bell officials.
The California Public Employees Retirement System (CalPERS) placed on hold the retirement accounts of the individuals under investigation in Bell and committed not to approve any pensions until satisfied the pensions are appropriate under the law (see CalPERS Places Hold on Pensions of City of Bell Members).
According to the Sacramento Bee, Schwarzenegger said in a veto message that the bills do not provide real pension reform. He urged lawmakers to continue trying.