Staff Reports
California voters were promised pension sanity after the 2013 PEPRA reforms. Now the unions are back with a plan to roll much of that progress back — and the state Legislature is listening. The newest move: AB 1383 cleared the Assembly and just got a “do pass” vote in a Senate committee, only to be re‑referred to Senate Appropriations for a fiscal check. Translation: this isn’t over, and taxpayers should be wide awake.
What just happened: AB 1383 is moving
Assemblymember Tina McKinnor’s AB 1383 passed the Assembly and recently won a favorable committee vote in the Senate. The bill was re‑referred to the Senate Appropriations Committee, where budget staff will dig into the numbers. A related measure, AB 1054 from Assemblymember Mike Gipson, also passed the Assembly and is moving through the Senate. These bills are being pushed hard by public‑safety unions and other public‑sector labor groups. Their message is simple: PEPRA made it too hard to recruit and keep police and firefighters, so let’s loosen the rules. Their wallet is loud, and Sacramento listens.
What the bills actually do
AB 1383 would lower the retirement age for some safety members, increase benefit multipliers for certain public‑safety employees, and raise the cap on pensionable pay to match the federal Social Security wage base — all written as prospective changes. AB 1054 would authorize a Deferred Retirement Option Program (DROP) for certain safety units, letting workers freeze a benefit while continuing to work and later cash out. Sounds helpful in the short term. The problem is long term cost.
Who pays: taxpayers, now and later
CalPERS staff cited in hearings warned that raising the pensionable compensation cap could raise normal costs by about $241 million in the first year, and lowering retirement ages could add about $38 million in that first year. Independent modelers put the multi‑decade price tag much higher — billions over 20 to 30 years. In plain terms: cities, counties, school districts and residents will face higher contribution bills down the road. Unions promise the bills are “targeted” and “not retroactive.” That’s like a fox promising not to raid the henhouse because he’ll only take the eggs he points to.
Why Californians should care — and what happens next
This is a classic Sacramento fight between powerful public‑sector unions and local governments watching budgets bleed. Appropriations is now the key gate. Fiscal staff will produce estimates and the committee will decide whether the bills move to the Senate floor. Governor Gavin Newsom and the Department of Finance will be key players if the measures reach the finish line. Californians who want stable local services should demand clear, honest fiscal answers before any rollback of PEPRA. If lawmakers want to help first responders, they should craft targeted, paid‑for fixes — not open the vault for open‑ended promises that taxpayers will eventually pay.
