Unions representing police and firefighters in California almost succeeded in enhancing retirement benefits for their members, but the looming memory of the state’s pension troubles was ultimately too much for Governor Gavin Newsom to overlook.
On Sunday, Newsom vetoed a bill intended to improve retirement perks for these first responders. The bill had gained near-unanimous backing from state lawmakers and faced significant pressure from public safety unions.
In his veto message, Newsom pointed out that the bill would have partially reversed a 2012 law promoted by former Governor Jerry Brown during a time when California’s pension funds were suffering from losses related to the Great Recession.
Brown’s law, known as the Public Employees Pension Reform Act (PEPRA), mandated that public servants work longer to earn a full retirement and contribute more from their salaries towards their pensions.
Newsom reflected on the dire forecasts and criticism aimed at public employees prior to PEPRA’s implementation, emphasizing, “This is an era of California history I do not wish to repeat.”
The 2012 pension reform led to significant changes for public safety employees, requiring them to work until age 57 for retirement, rather than 50. Additionally, it modified their retirement formula from 3% per year to 2.7% per year.
Today, unions representing police and firefighters argue that 57 is too advanced an age, citing the physical toll of their work and the risks they face. They supported Assembly Bill 1383, which sought to reduce the retirement age to 55.
California Professional Firefighters President Darrell Roberts highlighted the importance of this change, stating, “AB 1383 gives us something important: Two more years with our families.” This statement came during a rally attended by hundreds outside the Capitol.
However, Assemblymember Tina McKinnor, the bill’s sponsor from Inglewood, aimed to do more than just lower the retirement age. The bill would have also increased the cap on pension earnings set by Brown’s law and enabled public safety unions to negotiate richer pension benefits, potentially reaching 3% per year of service.
Such changes would have likely imposed hundreds of millions of dollars in additional annual costs for California’s cities and counties, according to estimates from the California Public Employees’ Retirement System.
Local governments expressed strong opposition to the bill, citing concerns about its financial implications. La Verne City Manager Ken Domer described the bill as “the greatest long-term financial threat to the sustainability of cities in years.”
Despite opposition, McKinnor’s bill received overwhelming bipartisan support, passing the Senate with a 33-0 vote and the Assembly 69-2.
As firefighters and police officers rallied, signs echoed their demands for safer retirements and called for recruitment support. Democratic Assemblywoman Stephanie Nguyen of Elk Grove addressed the crowd, declaring, “This is just the beginning. After we get this signed, we will do more. We will fight for more to show you that we appreciate you.”
