Public-employee pensions face a rollback in Calif.
SAN DIEGO (AP) — For years, companies have been chipping away at workers' pensions. Now, two California cities may help pave the way for governments to follow suit.
Voters in San Diego and San Jose,
the nation's eighth- and 10th-largest cities, overwhelmingly approved
ballot measures last week to roll back municipal retirement benefits —
and not just for future hires but for current employees.
coast to coast, the pensions of current public employees have long been
generally considered untouchable. But now, some politicians are saying
those obligations are trumped by the need to provide for the public's
health and safety.
The two California cases could put that
argument to the test in a legal battle that could resonate in
cash-strapped state capitols and city halls across the country. Lawsuits
have already been filed in both cities.
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