The cases in front of the Californian Supreme Court could revoke the old rule of worker’s pension. The new rule could see cuts in the pension rates of the workers who are still working. The new lawsuit could hit California, right from cities to counties to all local bodies.
The grand old Californian rule of 1947 that aids the workers is under threat. This rule gives workers’ security after their retirement from public service. The pension costs ash is escalating and troubling the lawmakers. The retirement benefits of the work that workers have performed will not be touched.
All eyes of the workers are now on the Californian Supreme Court ruling. The major pension funds are the California Public Employees Retirement System and the State Teachers Retirement System. They can only pay for two-thirds of the pension costs. They would raise the remaining amount from the state and the local governments. This puts a lot of pressure on their state and local government budgets.
Gov. Jerry Brown has filed cases in court stating that pension benefits are very generous. If the Supreme Court makes its decision on the precedent, then public employees will not have to worry. But, if the Court thinks otherwise, then there could be a change in the pension rules in California.