San Jose's unions didn't really fight the Measure B pension reform that passed with 70 percent of the vote Tuesday, but they did immediately file a legal challenge. Here is Mayor Chuck Reed's response to claims that the reform he championed isn't legal:
"Measure B was carefully crafted to follow California law. San Jose is a charter city and the California Constitution gives charter cities: 'plenary authority' to provide in their charters for the compensation of their employees. i San Jose's City Charter reserves the right of the City Council and the voters to make changes to employees' retirement benefits: '.. the Council may at any time, or from time to time, amend or otherwise change any retirement plan or plans or adopt or establish a new or different plan or plans for all or any officers or employees.' ii San Jose's Municipal Code allows the City to require employees to pay more for retirement benefits. In fact, two years ago, a number of city employee unions agreed that the city could make employees pay more for retirement benefits. iii In addition, more than 200 other California cities have required employees to pay for a larger share of their retirement costs. iv The courts have upheld the rights of local government to determine compensation, and according to the 9th Circuit Court of Appeals, 'it is well established that public employees have no vested rights to particular levels of compensation and salaries may be modified or reduced by the proper statutory authority.' v The City has filed an action in federal court asking for declaratory relief in order to receive a prompt ruling on any potential legal issues and minimize the cost of legal disputes. A public legal opinion prepared by the City's outside counsel is available at: http://www.sanjoseca.gov/mayor/goals/budget/PDF/MeyersNavePublicLegalOpinion.pdf "
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