What Happened
Voters overwhelmingly passed San Jose’s “Measure B,” which will curb both new and existing employee pension costs.
Key Reforms
Among the key components of Measure B are:
- Current employees keep pension credits already earned, but must pay up to 16 percent more of their salary to continue that benefit, or choose a more modest and affordable plan for their remaining years on the job.
- Limit retirement benefits for future hires by requiring them to pay half the cost of the pension.
- Suspend current retirees’ 3 percent yearly pension raies up to five years if the city declares a fiscal crisis.
- Discontinue “bonus” pension checks to retirees.
- Require voter approval for future pension increases.
- Change disability retirement with the aim of limiting it to those whose injuries prevent them from working.
San Diego Too
San Diego also passed its pension reform measure with a whopping 69 percent voting in favor. Among other reforms, Proposition B would replace guaranteed pension with a 401k-style defined compensation plans for new city employees.
Next Steps
To learn more about San Jose’s Measure B, refer to the city’s official Pension Modification document, which includes details, full text, “impartial analysis,” and arguments for and against.
Details on San Diego’s Proposition B can also be downloaded.