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CHP Agrees to Pension Reduction for New Hires

June 17, 2010  | 

The union representing California Highway Patrol officers has agreed to reduced pension benefits for new hires, under a plan that will help reduce the state's budgetary deficit, the Sacramento Bee reports.

Under terms of the deal, all employees' retirement contributions would also increase.

Here's an excerpt:

Newly hired patrol officers and firefighters would come in under a new pension formula that would allow them to retire at age 55 with 3 percent of the average of their highest three years of pay multiplied by their years of service up to 90 percent of that average wage. Current employees can retire at age 50.

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