Sunday’s veto blocked AB 1383, which would have let California police and firefighters retire at 55 instead of 57 and boosted other pension benefits.
Newsom said the measure would partly undo Jerry Brown’s 2012 pension overhaul, which raised retirement ages and employee contributions after major funds were hit by Great Recession losses.
CalPERS estimated the broader benefit changes—including a higher pensionable-pay cap and formulas up to 3% per year of service—would add hundreds of millions of dollars in annual costs for cities and counties.
The bill had passed 33-0 in the Senate and 69-2 in the Assembly after heavy lobbying from public-safety unions, which argued earlier retirement is needed because of the physical toll and hazards of the jobs.
The veto preserves one of California’s central post-crisis pension restraints, highlighting the state’s reluctance to reopen public retirement costs even for politically powerful unions.