Court Ruling Clears Way for Permanent Implementation of San Diego Pension Reform Initiative

The 4th Appellate District Court just released a unanimous ruling dismissing the lawsuit brought against the City of San Diego by the union-dominated State Public Employees Relations Board (PERB).  The decision upholds Proposition B – the landmark Pension Reform Initiative passed by 2/3rds of San Diego voters in 2012.

Former San Diego City Councilmember Carl DeMaio, who authored the Prop B Pension Reform Initiative, offers the following statement in light of the ruling:

“Today the California courts have upheld the right of the voters to impose reform on outrageous government pensions using the citizens’ initiative process.  Prop B will save city taxpayers billions over 30 years and helped save the City of San Diego from bankruptcy.  The labor unions who brought this frivolous lawsuit must learn one simple thing: government belongs to the people, not the special interests.  It is time for the rest of California state and local government to follow San Diego’s lead by reforming their own unsustainable government pension packages that have resulted in billions in debt.”

DeMaio’s Prop B permanently closed the city’s lavish defined benefit pension program to city employees, switched all new employees to 401(k) defined contribution plans, forced city employees to contribute a fair and equal share for the costs of benefits, and capped pensionable pay to reduce pension excesses. The dismissal of this lawsuit today marks the last legal challenge from the labor unions and significantly weakens the presumed power of the PERB board.

Carl DeMaio will discuss the importance of the ruling more today on his daily radio show on NewsRadio 600 KOGO from 3-6pm.  DeMaio has been working with former San Jose Mayor Chuck Reed on a state-wide Pension Reform Initiative and this court victory only improves chances of reform statewide.  Individual interviews by appointment.

This release was issued by Reform California.