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Generous Sick-Leave Cashouts for Retirees Cost San Jose, California, Millions

Excerpt: [San Jose public employees benefit] from city policies that are under scrutiny as San Jose confronts staggering budget deficits: letting longtime employees cash out unused sick and vacation leave when they retire. The policy cost taxpayers $7.8 million in 2008, up from $5.5 million the year before, according to pay data requested by the Mercury News. That's about one-tenth of next budget year's projected $78 million deficit. City officials say the benefit exceeds what government officials get elsewhere, not to mention private-sector employees where such large cash-outs are unheard of.

San Jose to Appeal Court Decision Overturning Pension Reforms

"Both the city and the unions are looking for a better outcome in the appeals court. The biggest war -- over whether cities could force existing employees to pay more toward their pensions, as Measure B called for -- was won by the unions the first time around. The judge still did side with the city on 10 of the other 14 provisions of the measure, which combined would still allow San Jose to save tens of millions of dollars per year. That has unions signaling an interest in an appeal, as well."

Slowed by Judge's Ruling, San Jose Delays Key Part of Pension Reform

"In the latest setback for San Jose's landmark pension reform, city officials have agreed with their employee unions to wait at least another year to implement certain pension and pay cuts ... The provisions of Measure B that required existing employees to pay more into their pensions had been scheduled to take effect July 1 after being delayed previously."

Settlement Talks Brewing in Landmark San Jose Pension Reform Case

"After years of intense fighting, the city and its employee unions are discussing a settlement of at least parts of a pension battle that has divided San Jose over key issues ranging from taxpayer costs to police staffing. The settlement talks over Measure B pension reforms ... have an outside shot of ending a landmark court clash that leaders across the country are watching as similar pension feuds bubble up from coast to coast.... An agreement might require another ballot measure as soon as this November."

San Jose Mayor to Propose Amendment to State Constitution to Stop 'Vested Rights' Doctrine

"'The government can't afford these benefits, and the employees can't afford these benefits,' [San Jose Mayor Chuck] Reed said. The two-term mayor said he hopes to file papers for a constitutional amendment in 'a couple days,' though whether it would go on the ballot in 2014 or 2016 remains to be decided.... 'The vested rights doctrine is being used to challenge even the most modest pension reforms,' Reed [said]."

San Jose Pension Reform Goes to Court

"San Jose's current budget already relies on $20 million from parts of the Measure B pension reforms. A city win could add $48 million in yearly savings. Workers, though, want to keep the city from grabbing even more of their paychecks to pay for their pensions. More broadly, the judge's ruling will affect similar debates over government pensions throughout the state and across the country."

San Jose Unions Sue to Block Voter-Approved Pension Reform

"San Jose police officers and firefighters Wednesday made good on promises to legally challenge San Jose's voter-approved pension reform with a pair of lawsuits filed in Santa Clara County Superior Court. San Jose voters Tuesday approved Measure B by a nearly 70-percent margin. ... But unions maintained the measure violates court rulings that prohibit government employers from reducing workers' pension benefits during their career without offering something comparable in return."

California Attorney General Clears Way for San Jose Police Union's Pension Suit Over Benefit Reductions

"The San Jose Police Officers' Association is among several city unions seeking to overturn the pension reform Measure B, which nearly 70 percent of city voters approved in June, in court as well as through a state agency that oversees public employee bargaining rights. The measure ... calls for reduced pensions for new hires and for current employees to either pay more toward their pensions or choose a reduced benefit formula for remaining years on the job."

San Jose Police Department Losing Some of Its Best After Pension Reform

"[F]or the first time in the department's history more police officers are resigning -- primarily for jobs with other departments -- than are retiring.... After pension reform and pay cuts, officers can make more money and better benefits elsewhere, even at smaller departments."

San Jose Formally Acts to Lower Pensions for New Hires

"A week after voters overwhelmingly passed a measure to cut costly city employee retirement plans, the San Jose City Council took the first step to put those intentions into action by voting Tuesday to shrink pension benefits for new city hires. Under the council's 9-1 vote with several union-backed members joining in support, new city workers except for police officers and firefighters will have to pay half the cost of their pension, which will have smaller payouts and a higher retirement age. The city is seeking reduced pensions for new cops and firefighters through arbitration."