Even San Diego Looking at Pension Reform

Posted: Jun 09, 2012 10:37 AM

You know it's bad when even a California city is forced to consider a fiscally responsible proposition.  A local San Diego news outlet reports:

San Diego voters Tuesday night were favoring a pair of labor-related ballot measures that drew intense opposition from area unions, according to early election results released by the Registrar of Voters Office. ...

Proposition B, which would close the city's debt-ridden pension system to most new employees, was being backed by 69.2 percent of voters. ...

If Proposition B passes, new city employees other than police officers would be given 401(k)-type retirement plans instead of being enrolled in the pension system. Also, only base salary over the next five years would be calculated into a worker's eventual retirement pay.

Supporters, including Mayor Jerry Sanders, Councilman and mayoral candidate Carl DeMaio and the San Diego County Taxpayers Association, and critics have squabbled over the financial impact on the city.

Backers said it could save somewhere close to $1 billion over the next 30 years because it slows down the growth of pension payouts.

Those against the measure said it discriminates against city workers and would cost the city more money in the short run. Opponents said its provisions will get tied up in court for years, so even if it passes, it will be a long time before it is implemented.