Moody's Investment Services has placed 15 California transit agencies under review for a downgrade due to a potential lack of federal funding.
The transit agencies have and will continue to lose federal grants unless California can negotiate pension benefits with its transit workers.
The 2012 California Public Employees Pension Reform Act increased employee pension contributions along with an increase to the retirement age, among other things. Unions representing the transit employees have protested the law, invoking the Federal Transit Act, which allows the Department of Labor to withhold federal transit funding if it appears that collective bargaining rights are obstructed.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
