![Judge blocks California city from cutting pensions](https://www.benefitscanada.com/wp-content/uploads/sites/7/2011/05/pension-law-money.jpg)
A California court has blocked San Jose from cutting pension benefits for the city’s workers—even though the reductions were approved by voters.
Superior Court judge Patricia Lucas said state law protects vested pension benefits.
However, her ruling also said the city would be entitled to cut employee compensation to help cover San Jose’s retirement plans’ unfunded liabilities.
The city will be carefully reviewing the ruling in the coming days. The decision will become final if neither party submits an objection within 15 days.