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San Diego’s five-year-old pension cutbacks are being reviewed by California’s Supreme Court with the possibility that they might be rolled back, writes David Garrick for The Union-Tribune.
At stake is the city’s shifting of pension provision from a defined benefit model to a 401 (k) schemes, except for police officers. New city employees are enrolled in the DC-type plan. If the change is rolled back it could cost the city millions in retroactive pension contributions.
The switch to 401 (k) made “San Diego the only jurisdiction in California not to offer traditional pensions to new employees,” writes Garrick.
“It’s rare for the state Supreme Court to issue a notice of review, which means that the court considers some element of the appellate court ruling that vindicated the city worthy of judicial review and possible change,” he continues.
(Click here for a story on the issue, an ARIA interview with Brian Marvel, an official with the city’s police officers association).
More: Unions filed a petition in May.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions.ca

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