California state payroll and pension benefit updates

Recent state payroll records and legislative actions have highlighted significant spending and pension developments in California. According to California State Controller data, approximately 250 state employees earned more than $600,000 in total compensation in 2025. The highest earner identified was CalPERS Chief Investment Officer Stephen Gilmore, who received approximately $2.3 million, including a performance incentive of over $1.5 million. This occurred while CalPERS reported $637 billion in assets against $716 billion in liabilities.

Concurrently, the California State Legislature has passed Assembly Bill 1383, which aims to expand pension benefits for first responders. The measure, which passed the Senate 33-0 and the Assembly 70-2, would allow police and firefighters to retire with full benefits at age 55 instead of 57. It also proposes increasing the maximum pension accrual rate from 2.7% to 3% per year of service and raising the cap on retirement income for higher-earning public employees. The bill now awaits Governor Gavin Newsom’s signature.