California state workers are giving up a raise. New contract reflects pension debt concerns
Its impact might be minor, but a state union’s offer to give up part of a raise to reduce pension debt is notable for what it might signal.
The California Association of Highway Patrolmen, which represents about 6,700 uniformed CHP officers, recently reached a four-year agreement with Gov. Gavin Newsom’s administration that diverts about a half-percent of a 3.5 percent raise to go toward pension debt. The proposal still requires approval from union members and the Legislature.
The agreement is unique because it specifies the diverted money — about $25 million over four years — will go toward reducing the long-term unfunded debts for California Highway Patrol pensions.
The $378 billion California Public Employees’ Retirement System as a whole has assets worth about 70 percent of what it owes to public workers and retirees.
Read more: https://www.sacbee.com/news/politics-government/the-state-worker/article234328682.html