SEIU and the American federation of State, County and Municipal Employees sued Menlo Park for placing a pension reform measure before voters in November 2010. They said that pension reform could only be handled by the city council, but the courts disagreed.
It took less than a year for the case to be settled, but judge George Miram issued a nine-page ruling saying that the city didn’t violate the law.
Both unions issued a statement saying they were disappointed by the ruling. However, both groups had agreed to new contracts that incorporated the central reforms that voters approved in November 2010. Those new terms include an increase of retirement age and a decrease in the pension formula.
However, the measure also requires voter approval of future increases in pension benefits.
From the Palo Alto Daily News:
A San Mateo County judge has upheld Menlo Park’s voter-approved law that reduces pension benefits for new employees hired by city government.
Menlo Park residents had the legal right to place Measure L on the November 2010 ballot, Superior Court Judge George Miram stated in his nine-page ruling on Friday.
The pension measure was passed by 71 percent of the city’s voters.
Read the full article here.