The California Assembly approved a bill that would create a new defined contribution plan for the state's public employees. The bill now goes to the state Senate for approval.
The bill would give any public employer in the state the option to offer the plan. Employers would set the contribution rates, vesting options and election options. Labor associations, including those for firefighters and police, oppose the proposal, said a spokesman for Assemblyman Howard Kaloogian, who wrote the bill. The boards of the California Public Employees' Retirement System and the California State Teachers' Retirement System also oppose it.
The spokesman said no city employer opposed the bill. Legislators from Michigan and Ohio have expressed interest in the bill, he said.