PUBLIC EMPLOYEES. PENSION AND RETIREE HEALTHCARE BENEFITS. INITIATIVE CONSTITUTIONAL AMENDMENT.

Amends California Constitution to impose restrictions on employer contributions toward cost of pension and retiree healthcare benefits for new public employees, including those working in K-12 schools, higher education, hospitals, and police protection. Bars government employers from contributing amount more than 11% of an employee’s base compensation (13% for safety employees) toward cost of pension and retiree healthcare benefits for public employees hired after January 1, 2019, and from paying more than one-half cost of such new public employees’ pension and retiree healthcare benefits, unless higher portion is first approved by voters. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Significant effects—savings and costs—on state and local governments relating to compensation for governmental employees. The magnitude and timing of these effects would depend heavily on future decisions made by voters, governmental employers, the Legislature, Governor, and the courts