Reply #10: I tend to think he will win this one.

[Maria Celeste]

1) What he his discussing is a defined contribution plan, 401 like (defined contribution vice defined benefit). Its what most retirement plans are today, including the Federal Gov.
2) He is proposing it just for new employees, not current ones. Exactly how the Feds set up FERS almost 20 years ago. However you can bet there will be incentives to change from CALPERS.
3) Most people are under defined contribution these days so the voters will support it. State government workers are not held in high regard in CA. Rightly or wrongly, most people think every office is like the DMV. CALTRANS is not helping here either.
4) Existing workers will go for it if they believe their retirements will not be touched. 2 tier compensation plans are quite common. Its easy to sell out the people you don't know or aren't hired yet.
5) Defined contribution makes budgeting much easier and takes the liability issue off the table. In private industry that appears to have been a good thing.
6) Makes direct corporate raids on "over funded pension plans" much harder since its not really company money anymore. IIRC, CA raided CALPERS a while back and there was an initiative to stop it. I have family who are retired on CALPERS, but did not follow the details closely. If someone does have the details, it may be helpful.
6) This does NOTHING to eliminate the power of the CALPERS board, since CALPERS should remain intact with for another 50 years. However, close attention must be paid to how the investment mechanism is set up for the new plan. Politicians lost control of CALPERS and they are not going to make that mistake again. FERS is much larger than CALPERS in terms of participants, and maybe capital. You never hear about them pushing changes in companies. Wonder why?

Not saying I like it or agree, but I think its going to sail through.