California's transit workers' pensions would be left untouched under a plan submitted by Gov. Jerry Brown to temporarily exempt them from legislative reforms.

Brown's plan was announced one day after the U.S. Department of Labor cut off $54 million in aid to the Sacramento transit system. The aid cut made good on a threat issued last month by Labor Secretary Thomas Perez to cut off $4.3 billion in transportation aid to the state over the next year if it went ahead with the pension changes. Perez contends the changes violate a 1964 federal law.

Brown's proposal was worked out in talks with federal officials. It would, according to a news release, allow the state to continue fighting for changes in pension benefits while creating the exemption through the end of 2014 for 20,000 workers. The Sacramento Bee reported that the city's transit system plans to file a lawsuit over the lost aid. Brown's bill would also provide loans to Sacramento to make up for the lost federal aid.