San Diego’s Pension Crisis, And Ours
The City of San Diego appears to be going through a sort of retirement version of Brexit. Employees hired after the passage of Proposition B in 2012 have been receiving 401(k)-style defined contribution benefits rather than the pensions that earlier hires receive. But the California Supreme Court ruled the ballot measure illegal, and this week, the U.S. Supreme Court declined to get involved. That leaves the city and unions to reconcile a situation complicated by a 2009 agreement to reduce future benefits, meaning workers wouldn’t benefit from a reinstatement of pensions in any event. But the unions see value in guaranteed income, which is precisely the obligation the city wants to avoid. Learn more about your ad choices. Visit megaphone.fm/adchoices