San Jose Pension Reforms Have First Test in Court

By NBC Bay Area Staff
|  Monday, Jul 22, 2013  |  Updated 10:18 AM PDT
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San Jose Pension Reforms Have First Test in Court

NBC Bay Area

San Jose city employee unions argue their pension rates are protected under a precedent established by past court decisions.

San Jose's controversial pension reforms have their first test in court Monday.

A Santa Clara county superior court judge will hear arguments on Measure B. The measure reduces pensions for new hires and would require current employees to contribute more of their salary toward their pensions.

Voters overwhelmingly approved the plan last year.

San Jose city employee unions argue their pension rates are protected under a precedent established by past court decisions.

It could be months before the judge issues a ruling.

San Jose Mayor Chuck Reed is trying to build support for a state constitutional amendment that would help cities reduce employee retirement benefits.
   
Cities should have the right to change retirement benefits workers earn in the future Mayor Reed told the San Jose Mercury News.

Reed hopes to have the amendment before voters by November of next year or 2016.

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