San Jose to Let Voters Choose Pension Reform

San Jose's city council voted 8 to 3 Tuesday to let voters this June decide whether to approve pension reform for city workers in what Mayor Chuck Reed and other council members call an essential move to free up funding for city services.

The long-awaited vote came after nearly three hours of rousing public testimony -- mostly from city employees -- about the measure proposed by Mayor Chuck Reed, which would increase those workers' contributions to their retirement plans and provide limited benefit plans to new employees.
      
The measure also proposes changes to the city's disability system "to prevent abuses", allows the city to temporarily halt cost of living adjustments to retirees during fiscal emergencies and requires voter approval for future pension plan increases, according to a city staff report.