Judge: San Jose cannot cut employee pensions

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Updated: 12/23/2013 3:43 pm

SAN JOSE, Calif. (AP) — A judge has ruled that San Jose cannot implement voter-approved cuts to employee pensions, but can cut salaries to meet the savings expected from the reduced pensions.

Santa Clara County Superior Court Judge Patricia Lucas released the ruling on Monday. It stems from a lawsuit over Measure B, which called for existing city employees to pay more into their pensions and retiree health care plans.

Voters approved it last year, but it was challenged by employee unions.

Lucas's ruling said the city could not make police officers, firefighters and other city employees pay 16 percent more toward their pension as required by Measure B. But it could cut their salaries to realize the savings expected from the pension reductions.

The San Jose Mercury News reports that the ruling is expected to be appealed.

©2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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