AB 1383, the public employees’ retirement benefits bill, was vetoed by Gov. Gavin Newsom on September 20, 2026.
The bill would have increased retirement benefits for certain California public safety employees, particularly police officers, firefighters and other employees covered under specific CalPERS safety classifications.
Why was it vetoed?
The central issue was the long-term cost and sustainability of public employee pensions.
The bill would have partially rolled back changes made under the Public Employees' Pension Reform Act (PEPRA) in 2012. PEPRA was enacted after the Great Recession to reduce pension costs and require employees to work longer and contribute more toward their pensions.
Governor Newsom said in his veto message that he did not want California to return to the pension sustainability concerns that led to PEPRA. Local government organizations also raised concerns that the enhanced benefits could substantially increase costs for cities and counties.
What the veto means
Nothing changes under AB 1383 because it did not become law. The existing PEPRA retirement rules remain in place for the employees who would have been covered by the bill.
The bill had very strong legislative support—it passed the Senate 33-0 and the Assembly 70-2—but that was not enough to overcome the governor's veto.
For California State Retirees
The important distinction is that AB 1383 was primarily about active/newer public safety employees and changes to PEPRA—not a general increase in retirement benefits for all California state retirees. So, the veto does not take away an existing retiree benefit.