Plan slashes California pension costs

LOS ANGELES — Democratic Gov. Jerry Brown offered a far-reaching proposal Thursday to reduce the cost to government of public pension programs.

He called for an increase in the retirement age for new employees, higher contributions from workers to their own pensions and the elimination of what he termed abuses that have allowed retirees to inflate their pensions far beyond their annual salaries.

Brown made his proposal at a time when pension costs - exploding under the twin burdens of generous benefits passed by the Legislature during more prosperous times and the collapse of pension investments in the stock market - have posed one of the greatest threats to California’s fiscal stability. The proposal includes local governments, and much of it would have to be approved by voters in November.

The proposal signified a new offensive by Brown, who has faced tough going in getting a budget through the Legislature. His pension plan ran into immediate resistance from labor leaders and skepticism from Democrats, particularly the notion that these kinds of cutbacks should take place outside the collective-bargaining system.