State Workers Wary of Pension Idea(stopping defined benefit pensions hurts [View All]

http://www.latimes.com/news/local/la-me-pension23jan23.story
State Workers Wary of Pension Idea
If fixed-benefit system is replaced, some predict, government jobs may become harder to fill.
By Catherine Saillant
Times Staff Writer

January 23, 2005

With a college degree in planning, Cesar Rincon could have landed a job with any number of private consulting firms in Los Angeles.

Instead the Boyle Heights native applied to the Los Angeles County Planning Department shortly after getting his diploma five years ago.

The private sector might have paid more, Rincon said, but the stability of his county planning job and the promise of a good retirement were more important.

"Working in the private sector, you just don't know how long your job will last," said Rincon, 29, recently married and hoping to start a family soon. "With a government agency, you know that if you work hard, you will have a secure job with excellent benefits."

That deal, long embraced by the state's public employees, could change dramatically in the months ahead.

Citing runaway costs, Gov. Arnold Schwarzenegger endorsed a proposal earlier this month to convert public employee retirements from a traditional defined-benefit system to the 401(k)-style plans held by most American workers.

The governor is also recommending that 326,000 state workers double the amount they contribute to their retirement funds. The proposals, which Schwarzenegger said were necessary to rein in state spending, are expected to face fierce opposition from unions. <snip>