Abstract
The debate over California state employee pensions is as contentious as it is longstanding. Since the inception of the State Employees Retirement System in 1931 (now called the California Public Employees Retirement System), a series of constitutional amendments, collectively bargained agreements, propositions, and legislative mandates have shaped the system and the retirement benefits available to state employees. Now, in a social and political environment that is ostensibly in favor of large reductions in benefits, the unions must make concessions to avoid being circumvented by policymakers or voters. This paper presents an analysis of the salient issues related to state employee pension reform to determine which measures are necessary to ensure that collective bargaining remains the central pillar of state employee benefit negotiations.