California “defined benefit” pensions in the public sector raise certain benefits and cost issues. The Governor proposes shifting all new public sector employees to “defined contribution” plans to address the high cost of the current system. Defined contribution plans address concerns with defined benefit pensions, but also introduce issues of their own. The Legislature could also address the benefits and cost concerns of current retirement plans within the existing defined benefit structure or with other pension plan alternatives.
Public Pension and Retiree Health Benefits: An Initial Response to the Governor's ProposalReport Feb 22, 2005
Highlights of the 2005-06 Perspectives and IssuesReport Feb 22, 2005
[PDF] 2005-06 Budget: Perspectives and Issues