Newsom vetoes pension reform bill, warns of 'additional risk'

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(The Center Square) – Gov. Gavin Newsom vetoed California's pension reform legislation on Sunday, calling the bill one that would reverse previous reforms and increase costs for state and local governments.

Assembly Bill 1383, authored by Assemblymember Tina McKinnor, D-Inglewood, would have increased the compensation limit for pensions for first responders such as police and firefighters. The bill was introduced earlier this year to bolster hiring in those jobs across the state, which has seen upticks in vacancies, according to a legislative analysis.

The changes would have widened the gap between first responders and public employees in non-safety roles, according to a veto statement from the Governor’s Office.

“This measure would partially reverse some of PERPA’s reforms and significantly increase state and local government costs,” Newsom wrote in his veto statement. “Moreover, by widening the retirement benefit gap between safety members and non-safety members, this measure invites further changes that would expose our retirement system to additional risk.”

When contacted by The Center Square on Tuesday, press staff in the Governor’s Office didn’t offer further comment on the veto and instead emailed the Democratic governor’s veto statement.

McKinnor, in comments included in the bill analysis, said retirement formula reductions have contributed to vacancies in first responder roles statewide.

“This bill represents our need to recruit and retain the next generation of first responders needed to protect the lives and property of residents across California,” the Assembly member wrote.

McKinnor was not available for an interview on Tuesday. The California Public Employees Retirement System, which pays out pension and retirement benefits for public employees, also couldn't be reached for comment.

A group that supported the veto, the California State Association of Counties, said in a press release on Sunday that the association believed the bill would have undermined current pension law if it had been signed.

“At a time of severe fiscal uncertainty and growing demand for services, it is more important than ever for state leaders to help control costs,” read the press release, sent by Ben Adler, the association's director of public affairs. “The pension reforms established just over a decade ago through PEPRA have been instrumental in stabilizing budgets for local agencies: cities, counties, schools, and special districts. This bill would have undone some of those vital reforms, adding billions in new costs and liabilities statewide over the next few decades.”

The press release from the California State Association of Counties was also sent on behalf of League of California Cities, California Special Districts Association, Rural County Representatives of California and Urban Counties of California.

No one was available Tuesday from the California State Association of Counties to talk about Newsom's veto.