How would Richmans bill, the proposed constitutional amendment, ACA 5 (and other similar proposals), change retirement?
Richman has said that public employees receive far-too-generous pension benefits. The bill would change retirement in four ways: • Require anyone hired after July 2007 to enroll in a DC plan; • Allow members currently in DB programs to roll their retirement over to the new DC programs, relinquishing all rights to switch back; • Authorize government employers to establish their own DC plans and outsource administration and investment to private sector companies; • Allow the state to contribute an amount from zero to some as-yet-to-be-determined maximum to employee retirement accounts. The Howard Jarvis Tax Association’s initiative would establish a maximum 6% employer contribution for most employees while permitting additional employer contributions for peace officers, firefighters and those not in Social Security.
