San Diego And San Jose Approve Pension Cuts In A Landslide Vote
SAN DIEGO (AP) — Voters in two major California cities overwhelmingly approved cuts to retirement benefits for city workers in what supporters said was a mandate that may lead to similar ballot initiatives in other states and cities that are struggling with mounting pension obligations.
Supporters had a simple message to voters in San Diego and San Jose: Pensions for city workers are unaffordable and more generous than many private companies offer, forcing libraries to slash hours and potholes to go unfilled.
"The public is frustrated," said San Diego Councilman Carl DeMaio, a Republican who staked his mayoral bid on the pension measure and advanced to a November runoff in Tuesday's election to lead the nation's eighth-largest city.
In San Diego, 66 percent voted in favor of Proposition B, while 34 percent were opposed. Nearly 97 percent of precincts were tallied by early Wednesday.
The landslide was even bigger in San Jose, the nation's 10th-largest city. With all precincts counted, 70 percent were in favor of Measure B and 30 percent were opposed.
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http://www.businessinsider.com/san-diego-and-san-joe-approve-pension-cuts-2012-6
The Federal Reserve has to keep interest rates very low so that interest payments on the federal debt do not bankrupt the US government. Therefore, the 8% return on investment built into the expectations for pension funds will never be realized. Therefore, the pensions will never actually be paid according to currently scheduled benefits.
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