Schwarzenegger urges pension overhaul

[dutchdemocrat]

Schwarzenegger goes for jugular and moves at Calpers... along with forgiving Enron (meetings with Lay) this was in the plans long ago.

Schwarzenegger urges pension overhaul

The governor endorsed plans to phase out the state's defined-benefit public pensions and Calpers.
January 6, 2005: 9:12 AM EST


SACRAMENTO (Reuters) - California Gov. Arnold Schwarzenegger urged lawmakers Wednesday to pass a controversial overhaul of the state's public pensions, including Calpers, the nation's largest pension fund.

Saying California's high-profile retirement funds were "on track to disaster," Schwarzenegger endorsed plans to phase out the state's defined-benefit public pensions in favor of defined-contribution plans similar to 401(k) retirement plans in the private sector.

"Like the budget itself, our state pension system is another financial train on another track to disaster," Schwarzenegger said in his second annual address to the legislature. "California's pension obligations have risen from $160 million in 2000 to $2.6 billion this year."

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http://money.cnn.com/2005/01/06/funds/calpers.reut/

[mdhunter]

1. Wow, that is a huge 5 year increase.