The first item in our October Client Update indicated that AB 194, which provided for a cap on compensation for purposes of calculating pensions for all government employees at 125% of the Governor's salary, was becoming law. That is incorrect. We have just learned that the Governor has vetoes this Bill, as well.
The Governor has indicated that this Bill made too small a dent in comprehensive pension reform, and again urged the Legislature to enact such comprehensive legislation, indicating that he would not sign the budget in its absence.
If you have questions about this issue, please contact our Los Angeles, Fresno or San Francisco office.