Politics & Government

Second Pension Reform Lawsuit Struck Down

Another lawsuit challenging a pension reform measure was rejected by a judge on Thursday.

For the second time in two days, a San Diego judge on Thursday rejected a lawsuit aimed at getting a pension reform initiative removed from the June ballot.

Judge Steven Denton sided with the city of San Diego in a lawsuit filed by Hud Collins, who is a frequent speaker at City Council meetings and is running for mayor.

Collins argued that the initiative amounts to a revision of the City Charter, which can only arise from the City Council or a special charter commission. The city contended that the measure, backed by area business leaders, only amends the charter.

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In his ruling, Denton said that if the measure passes, there will be significant changes to the retirement plan given to employees.

"However, these changes do not affect the very framework and structure of city governance," Denton wrote.

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Councilman Carl DeMaio said the twin victories demonstrate "the legal rigor" of the initiative.

"I cannot prevent the government unions and their friends from filing frivolous lawsuits, but I can assure San Diegans that this pension reform initiative will withstand these baseless challenges," said DeMaio, who is running for mayor.

The measure, on the June 5 primary ballot, would give most new employees 401(k) retirement plans instead of enrolling them in the debt-ridden pension system. It would also, for a five-year period, limit the computation of retirement pay to base compensation.

Proponents say the changes would save $1.2 billion or more through 2040 by limiting the growth of pension payouts. Opponents, including city union leaders, say it would leave workers without a safety net and cost the city more dollars in the short term.

On Tuesday, Judge William Dato denied a request for a temporary restraining order by the state Public Employment Relations Board, which also sought to take the initiative off the ballot.

The state agency known as PERB had agreed with a union complaint that city leaders failed to meet with them regarding the provisions of the measure.

Dato ruled that the issue could be argued after the election.

City officials are required to negotiate changes to labor rules resulting from an initiative if the ballot measure is authored and promoted by the city. That requirement does not exist for measures put forth by private citizens.

The unions had argued that the pension reform initiative's biggest supporters are DeMaio and Mayor Jerry Sanders. Both say they have acted on their own time when they've offered support to the measure.

Municipal Employees Association President Michael Zucchet predicted Tuesday that the pension reform measure will eventually be found illegal.

-City News Service


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