BILL NUMBER:  AB 194
  VETOED	DATE: 09/30/2010




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To the Members of the California State Assembly:

I am returning Assembly Bill 194 without my signature.

The bill limits the salary that retirement benefits are based on for
individuals, prospectively after January 1, 2011, to 125% of the
Governor's salary, as specified.

The current compensation limit imposed by the federal government to
determine public employee retirement benefits is $245,000.
Currently, this bill would cap the compensation counted towards
retirement at $217,483.  While this two tiered cap that would be
created by this bill would make a very small dent in the pension
problem California faces, it cannot be considered real pension
reform.  I am still hopeful that the Legislature will pass an
acceptable bill that addresses the real cost issues that have driven
up the liability in public pension systems.

For these reasons, I am unable to sign this bill.

Sincerely,



Arnold Schwarzenegger