California state employee compensation and pension policy

Public records and legislative developments have highlighted high compensation levels and pension policy changes within California state government.

Data indicates that approximately 250 state employees earned more than $600,000 in total compensation. The highest-paid individual was Stephen Gilmore, the Chief Investment Officer at the California Public Employees Retirement System (CalPERS), who received approximately $2.3 million, including over $1.5 million in ‘other pay’ or performance incentives. Other high earners include CalPERS officials Arnold B. Phillips, Daniel Bienvenue, and Marcie Frost, as well as staff psychiatrists within the Department of Corrections and Rehabilitation.

In addition to compensation disclosures, the California State Legislature has moved to expand benefits for first responders through Assembly Bill 1383. The bill, which awaits the Governor’s signature, proposes allowing police and firefighters to retire with full benefits at age 55 rather than 57. It also seeks to increase the maximum annual pension accrual rate from 2.7% to 3% and raise the retirement income cap for high-earning public employees. These developments occur as CalPERS reports $637 billion in assets against $716 billion in liabilities.