In a move to slash the retirement benefits of public employees in California, a group of mostly conservative policy advocates has been working behind the scenes on a possible 2014 ballot initiative. A copy of the still-secret draft initiative, which could dramatically impact the lives of hundreds of thousands of Californians and send a signal nationwide, has been obtained by Frying Pan News. (See the document’s text following this article or click here.)
If enacted, the proposed law would allow the state and local governments to cut back retirement benefits for current employees for the years of work they perform after the changes go into effect. Previous efforts to curb retirement benefits for public employees have largely focused on newly hired workers, but the initiative would shrink pensions for workers who are currently on the job.
“This initiative defines that a government employee’s ‘vested rights’ only applies to pension and retiree healthcare benefits earned for service already rendered, and explicitly empowers government employers and the voters to amend pension and retiree healthcare benefits for an employee’s future years of service,” the private draft states.
In other words, current state and municipal workers’ retirement benefits will only be partially guaranteed by the number of years they have already worked; from the time the initiative becomes law, the accrual of those benefits will be drastically curtailed.
One of the rationales provided by the draft ballot to justify its unprecedented reach into the lives of public employees is the ongoing funding shortfalls that California and many of its cities find themselves confronting. But, while pledging to help the state “maintain retirement plans that are sustainable, fiscally sound and able to meet the commitments to its employees,” the draft also claims its reduction of pension benefits is being carried out “[i]n order to protect the government’s ability to provide essential services to the public.”
The draft initiative is being circulated by San Jose Mayor Chuck Reed, who successfully pushed a pension-busting ballot initiative in his city’s 2012 election. That law, like a similar one passed the same year in San Diego, is currently being challenged in court. Reed, according to several sources, has been circulating the draft among other mayors, public officials and others in California who believe that public employee pensions should be scaled back.
Following repeated attempts to reach Reed for comment on the draft ballot, Frying Pan News received what appeared to be confirmation of its authenticity in an email sent by a Reed press aide: