State pension comparison shows California's benefits more generous (December 08, 2004)

Comparing public pension benefits offered in California through CalPERS with benefits in other states is difficult because of the many variables that determine benefit levels.

But a recent report by the state Legislative Analyst's Office concludes that, in its comparison of five large or Western states, "California benefits are more generous." The other states were Florida, Illinois, Oregon and Texas.

The supporting figures in the report showed average benefits for non-safety (miscellaneous) public employees retiring at 55, 60, 62 and 65. California's benefits were higher in all cases.

At 55, the average California employee's annual benefit is $25,200, according to the report. In Oregon, the average is $15,242; and in Florida, $11,914. Illinois and Texas workers are not eligible for pensions at 55.

At 65, the average California employee's annual benefit is $46,500. In Texas, the average is $40,775; in Oregon, $29,606; in Illinois, $28,913; and in Florida, $28,410.

The report cites the enhanced retirement benefits approved in 1999 as a "significant factor" in the skyrocketing costs of pensions to the state -- in addition to the poor performance of the stock market.

The Legislative Analyst's Office recommends that the Legislature "seriously consider" a proposal from the governor's office to enroll new state employees in pre-1999 pension plans, eliminating the enhanced benefits, and to consider offering "defined contribution" 401(k)-type plans to new employees.

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