Breaking: Watered down PERS reform bill dropped
Now the question is will Senate Republicans sell out on tax increases for watered down PERS reform? Sadly we already know the answer for some Assembly Republicans sans the PERS reform, of course.
Among the key provisions is reducing the benefit multiplier to 2.5 percent from 2.67 percent. This change increases to 30 years from 28 years the time it takes for an employee to fully vest in the retirement plan. Republicans said yesterday they would not agree to a multiplier less than 2.35 percent, which increases the vestment period to 32 years.
The bill also increases the retirement ages for police and firefighters as well as state workers. Police and firefighters will need 20 years to retire at 55 instead of 50 and 10 years to retire at 60 instead of 55. State workers will have to work 10 years to retire at 62 instead of 60.
The early retirement penalty also would be increased to 6 percent from 4 percent and the bill includes “anti-spiking” language designed to keep public employees from increasing their pay in their final years.