California Case Opens Door for Pension Benefit Reductions
- Marin case challenges precedent holding benefits can’t be cut
- Union vows to appeal to highest court to protect members
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Along with death and taxes, Californians have counted on another inevitability: once pension promises are made to public employees, they can’t be rolled back.
That belief, which has guided officials as they deal with mounting bills to cash-strapped retirement plans, was shaken in August when a state appellate court said benefit cuts are permissible if the pensions remain "reasonable" for workers.