California Gov.Arnold Schwarzenegger roiled the institutional pension plan markets by vowing to terminate access to state pension plans for newly hired workers, Bloomberg reports.
As part of a broader cost-cutting package to control California's ballooning $8 billion deficit, Schwarzenegger proposed shifting nearly $300 billion of state retirement assets to privately managed accounts, like 401(k) plans.
Retirement plan providers including
The governor's remarks have already prompted outcries from area union leaders and officials at the
Investment experts say the governor's plan would diminish leverage from state pension groups that have established a track record of standing up to corporate titans like