Schwarzenegger Abandons Pension Overhaul, For Now

SACRAMENTO, Calif. - Under pressure from firefighters and police officers, Gov. Arnold Schwarzenegger on Thursday backed off, for now, his plan to privatize California's public employee pension system. The Republican said "misconceptions" among firefighters and police officers that privatization would strip them of death and disability benefits had come to dominate the issue. Over the past few weeks, Schwarzenegger has waged a campaign to put privatization on the ballot during a special election next fall. But on Thursday, he said he would wait until the June 2006 election if lawmakers did not craft a compromise measure in the coming months.