A state trial court in San Diego has struck down a 2012 voter initiative that eliminated pension plans for new city employees, except police officers.
San Diego Superior Court Judge Richard Strauss on Tuesday sided with the city of San Diego and issued a verbal ruling from the bench, declaring the initiative, known as Proposition B, to be invalid, according to a statement Wednesday from the $9 billion San Diego City Employees' Retirement System.
Currently, the court is drafting a written decision, which will direct the city council to erase Proposition B's language from the city charter.
"We do not know exactly how this ruling will be implemented — whether it will retroactively provide pension benefits to all city employees who were affected by Proposition B, if these employees will be compensated some other way and begin earning pension benefits prospectively or if some other resolution will be negotiated," SDCERS said in its statement.
If the ruling is appealed within 60 days of the court's written decision, the ruling's enforcement could be stayed, it said. SDCERS is not a party to the lawsuit.
"Proposition B promised to save money and that cities throughout California would follow our example by ending pensions. Neither happened," said San Diego Mayor Todd Gloria in a written statement.
Mr. Gloria added that once the court's ruling is finalized he will work with the San Diego City Council, the city attorney, employee unions to "chart a course forward that is in the best interest of San Diegans and the city employees that serve them."
The ballot measure has faced ongoing litigation since it was passed more than 8 years ago.