|Increased benefits subject to ballot|
"A San Mateo County judge has upheld Menlo Park's voter-approved law that reduces pension benefits for new employees hired by city government.
Menlo Park residents had the legal right to place Measure L on the November 2010 ballot, Superior Court Judge George Miram stated in his nine-page ruling on Friday. The pension measure was passed by 71 percent of the city's voters." Read Article.
Reduction of benefits for new hires. The retirement age is raised from age 55 to 60, except for police officers. Pensions are calculated at 2% of the highest paid 3 consecutive years, times years worked. (The calculation is 2.7% if hired prior to 2/12/12).
This mild reduction in benefits for new hires seems to be nothing more than what the State of CA has been talking about for the past 2 years. Compare to the private sector: social security retirement benefits are 40% of the lifetime average paid into social security. What's fair about that? It seems retirement benefits for the private sector need to step-up, while retirement benefits for the public sector needs to step-back.
Posted by Kathy Meeh