Thursday, October 27, 2011

California Gov. Jerry Brown proposes State Pension Changes

by Bill McBride on 10/27/2011 11:52:00 PM

If this moves forward, this might become a model for other states. A big "if" ...

From the LA Times:

Gov. Jerry Brown risks backlash on pension planBrown's 12-point plan, announced Thursday, would require that all public workers have at least half the cost of their pensions deducted from their paychecks. ...

The governor also wants future employees to receive up to a third of their retirement income from a 401(k)-style plan rather than a traditional guaranteed pension. And he urged that the retirement age for most new public workers be raised from 55 to 67.
Earlier on GDP:
GDP slightly above pre-recession peak, Investment Contributions
Advance Estimate: Real Annualized GDP Grew at 2.5% in Q3
GDP Graphs