Gov. Gavin Newsom vetoed legislation that would have expanded retirement benefits for certain California public safety workers, citing concerns about increased costs and potential risks to the state’s retirement system.
“I’m returning Assembly Bill 1383 without my signature,” Newsom wrote in his veto message to the California State Assembly.
Newsom said the legislation would have partially reversed reforms enacted under the California Public Employees’ Pension Reform Act, or PEPRA, which took effect in 2013.
“This measure would partially reverse some of PEPRA’s reforms and significantly increase state and local government costs,” the governor wrote. “Moreover, by widening the retirement benefit gap between safety members and non-safety members, this measure invites future changes that would expose our retirement system to additional risks.”
Assemblymember Tina McKinnor (D-Inglewood) authored Assembly Bill (AB) 1383.
About 500 California public safety workers gathered at the State Capitol on Sept. 14 to urge Newsom to sign the bill.
“For those of us who do the work, AB 1383 is much more than just retirement. It’s about a future of public safety in California,” said Gamble, a director of the Sacramento Police Officers Association. “It creates a more sustainable career path for public safety professionals while giving local governments and labor organizations the ability to negotiate retirement benefits that make sense for the individual communities.”
First responders and labor organizations, including California Professional Firefighters and the Peace Officers Research Association of California, argued that the bill represented an essential investment in the state’s public safety workforce.
AB 1383 would have established new pension formulas for public safety employees first hired on or after Jan. 1, 2027. It also would have allowed unions and government employers to negotiate prospective pension increases of up to 3 percent of an employee’s final compensation for each year of service at age 55. The maximum formula under PEPRA is 2.7 percent at age 57.
At a June 24 hearing of the Senate Labor, Public Employment and Retirement Committee, McKinnor argued that stronger retirement benefits were necessary to help public agencies remain competitive and attract new talent. The bill also would have allowed employers and unions to negotiate pension formulas and cost-sharing arrangements.
“AB 1383 does not grant retroactive retirement benefit increases or pension holidays, and it does not change other necessary and appropriate PEPRA guardrails,” McKinnor said. “AB 1383 only applies prospectively, recognizing the ongoing challenges and dedication of our firefighters, police, and the unique challenges and risks associated with a career as a first responder.”
According to the Public Policy Institute of California, California law enforcement agencies employed more than 119,400 full-time workers in 2024, including approximately 77,200 sworn officers with full arrest powers and 42,200 civilian employees.
According to estimates cited by CSAC from the Department of Finance and the California Public Employees’ Retirement System, the bill could have cost participating cities and counties between $4 billion and $7.4 billion over several decades, placing additional pressure on state, school and local government retirement plans.
