Judge rules pensions can’t be cut but pay can. San Jose POA vows to keep on fighting!
In a landmark ruling out of California, a judge invalidated key parts of San Jose’s voter-approved pension cuts but says the city can cut employees’ salaries to offset its increasing pension costs. The ruling was a mixed bag for the San Jose POA which welcomed the decision not to cut pensions for retirees but has vowed to fight any more cuts to their officers’ paychecks.
Sgt. Jim Unland, president of the Police Officers Association, vowed to take the city to court if officials try to slash employee pay, saying the cuts need to be approved at the bargaining table.
Santa Clara County Superior Court Judge Patricia Lucas’ tentative decision prohibits the city from forcing current employees to contribute significantly more toward their pensions, as called for in last year’s Measure B passed by the voters. Measure B called for existing employees, from cops to firefighters to bureaucrats, to pay 16 percent more toward their pensions to help cover some $3 billion in debt accumulated in the underfunded plans. Judge Lucas ruled that invalid, arguing the city had long held itself solely responsible for such “unfunded liabilities” in the plan, creating a “vested right” for employees to have the city cover those debts.