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Mayor and Unions Reach Pension Reform Compromise


Tom Fudge : Finding a solution to the San Diego pension fund crisis has resulted in many skirmishes. But the most meaningful contest is between the Mayor and city workers. It's been a classic labor-management confrontation over cuts in benefits versus increases in funding. The Mayor has tried to reduce benefits and the unions have tried to keep them in place.

This week, both sides reached a compromise over a plan to reduce pension benefits. It looked like the plan was headed for the November ballot. But in the end, union leaders thought that would be too great a price to pay. The deal was reached by the Mayor and the leaders of three non-public safety unions. Will it solve the city's financial problems? No. But it seemed to set a precedent that could lead to future reductions in a pension system that is quite generous, compared to those found in the private sector.



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