San Jose pension vote could set precedent
David Brancaccio: Today in San Jose, California, voters will decide whether to adopt limits on the costs of pensions for city employees.
As Peter Jon Shuler reports from station KQED, local governments around the country are keeping a close eye on the outcome.
Peter Jon Shuler: San Jose Mayor Chuck Reed has been pushing pension reform for months. He says retirement costs have tripled in the last decade.
Chuck Reed: Which have driven us to cut services year after year. We’re draining money out of services and pouring into retirements.
The measure would require workers to pay more into their retirement funds, or opt into a less generous plan. But city employees say they would rather negotiate a solution than decide it at the ballot box.
Fifty-four-year-old Cheryl Wessling says the measure has already taken a serious toll on morale.
Cheryl Wessling: Perhaps I’d have to look at either a second jobs or I’d have to consider finding a job that pays better.
Cities across California face the same pension problems. Experts say if the San Jose measure passes, other cities are likely to follow suit.
I’m Peter Jon Shuler for Marketplace.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
