San Jose and San Diego voters pass pension reform

While our city “leaders” pale at the idea of taking on our local unionized public employees, the voters in San Jose and San Diego managed to pass critical pension reform legislation in their towns. In San Jose the mayor led the pack for reform. 

From the New York Times

In San Jose:  “The measure gives city workers an option: They can keep their current pension, as long as they agree to contribute more of their salaries — up to 16 percent — to the pension fund, or they can enter a less generous pension plan with a higher retirement age, benefits that accrue more slowly and smaller cost-of-living adjustments. Future hires would be put into a plan that costs even less, and would be required to contribute up to half of its cost.”

In San Diego: “San Diego’s plan would require future hires to enroll in a defined-contribution plan, similar to a 401(k) plan. In the future, public employees will be responsible for investing their own retirement money, and if their investments fail, the city’s taxpayers will not have to step in. The city’s current workers will see a freeze in the amount of their pay that will be used to calculate pension benefits, which the city estimates will save it $1 billion over the next 30 years…”

In Chico, it was the Memo of Understanding, signed by current mayor Ann Schwab, that linked city pay to REVENUE INCREASES BUT NOT DECREASES that put us where we are today – ON THE BRINK OF FINANCIAL DISASTER. 

Ann needs to go in November.