San Jose Unions announce pension plan changes they say would save millions

SAN JOSE, CA &#8211 Five San Jose unions have presented a pension reform plan they say will save the city $467 million over the next five years.

The unions represent the San Jose police officers, firefighters, architects and engineers, middle managers, and maintenance supervisors. Their proposal significantly reduces the cost of pension benefits, increases the retirement age, and decreases the rate at which pension benefits are earned.

The police union would also drop its arbitration over its members’ 10% pay cut as part of the plan, which would save the city $30 million in the next fiscal year. Police Union President George Beattie says that the the unions’ plan is a better alternative to Mayor Chuck Reed’s proposal, which he says would illegally nullify union contracts.

From NBCBayArea.com.