California Gov. Jerry Brown unveils pension compromise that caps benefits

http://www.insidebayarea.com/news/ci_21417783/democratic-lawmakers-release-pension-fixes

Gov. Jerry Brown on Tuesday announced an 11th-hour deal with top Democratic lawmakers on pension reform that caps benefits for new employees, boosts their retirement age and requires them to pay at least half their pension costs.

The deal, estimated to save between $40 billion and $60 billion over 30 years, is considered the key to the success of Brown's November tax-hike initiative because the governor and Democratic leaders need to prove to suspicious voters that they are serious about controlling spending.

A single bill that contains all of the reform package, AB340, easily passed a conference committee Tuesday night and will be voted on by the Democratic-controlled Legislature on Friday.