Staff
San Jose is defending itself in court this week over its proposed pension reforms.
The city wants its employees to split pension contributions evenly instead of the current US$8 San Jose contributes for every $3 employee contribution. Pensions for new hires would also be reduced.
Voters approved of the plan last year. But the city’s unions filed a lawsuit, which argues that the changes violate the rights of its members and would breach California’s state constitution.
Costs for the city’s pensions have more than tripled to US$245 million in the past decade.
The hearing is scheduled to last about a week and a ruling might not be issued until the fall.
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