As San Diego officials joined forces this week on an initiative to switch all new hires except police from pensions to 401(k)-style plans, Mayor Jerry Sanders said the city’s troubled pension system could become a “national model.”
But in Sacramento, none of the half dozen pension overhauls proposed this year by Gov. Brown and reform advocates inside and outside of state government is a pure 401(k)-style investment plan….
Recent pension reform proposals have not been stand-alone 401(k) plans.
A bipartisan state watchdog, the Little Hoover Commission, suggested a federal-style hybrid plan while urging a freeze of pensions earned by current workers. A freeze could curb rising pension costs threatening to “crush” government, but would also trigger a legal test of whether promised pensions can be cut.
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