The State Worker

Chronicling civil-service life for California state workers

January 7, 2011
Assemblyman Jerry Hill pushing pension cap bill

Jerry Hill.jpgAssemblyman Jerry Hill, D-San Mateo, is holding a press conference in San Francisco today at 11:30 a.m. to announce legislation that would cap all public pensions in California at a salary base of $245,000 per year.

Assembly Bill 89 seeks to close what Hill's press release says is "a loophole that allows tax-exempt institutions like the University of California to award pension benefits to public employees above the federal limit."

Hill is promoting the measure after three dozen University of California employees, all of whom earn more than $245,000 annually, have threatened to sue the system over pension payouts. The employees say that the IRS lifted a cap that previously required benefits calculated only on salary up to $245,000. University officials have since said that the system isn't obligated to pay at the higher rate.

Hill says in the press advisory that "the last thing California needs at a time when public entities are grappling with budget deficits is increasing benefits for employees making more than $245,000."

The bill language isn't yet available online, but The State Worker received a copy from Aurelio Rojas, Hill's communications director. We've Scribd it here:

Assembly Bill 89 - Jerry Hill

PHOTO: Assemblyman Jerry Hill / www.assembly.ca.gov

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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