In the Coalition's 2008 - 2009 Annual Report, they have an article about California Initative 1350.  According to the article, the initative would force re-negotiation of pension contarcts and lower worker benefits.

This article, like most in that publication, appeared to be just another attempt to alarm LEOFF 1 members.  For many reasons, a like situation would not and could not apply in Washington.

Anyway, the issue is moot.  The initative failed to qualify for inclusion on the ballot in California. 
See the California Secretary of State's web site.