There has recently been a ground swell in California around pension reform. Many government employees are currently under public scrutiny for receiving exorbitant amounts of money in their pension plan. This all stems from the ruling that allows pensions to be calculated as a fairly large percentage of the salary drawn by the individual in his or her last year of service, which almost always results in spiking of salaries for pension purposes. Pension reform is an attempt to curb such unnatural spiking of pensions while also setting limits.

According several recent reports, state worker retirement costs have increased by 2000 percent in the last ten years. Reforms on pensions are needed to limit the maximum amount that can be paid to any retiring individual to a six-digit figure, which is expected to put an end to pension spiking. Both former governor Arnold Schwarzenegger and current governor Jerry Brown favor changes that require more contribution on part of each employee as well as independent oversight. Such oversight could have avoided the recent scandals that have plagued the city of Bell over exorbitant salaries and pensions to various local officials.

Pension reform proponents also feel that changes can help increase the age of retirement to be more closer to federally recognized levels. “Double dipping” or the practice of receiving pension and then going back into service is another problem that reforms can address.

Opponents of pension reform believe that while the bill talks about reducing pensions in the present, it can lead to collective bargaining in the future, which can unleash a whole new set of problems. Another point of discontent with reform opponents is restrictions on double dipping, which they believe will hinder the progress of skilled retired employees that they feel, will still be needed in the system.

Given the current state of the economy, sustainability is very difficult. Pension reforms must be enacted so that the state can actually move towards overcoming its current budget deficit and also avoid similar pension problems in the future.