UPDATE: Court of Appeal Likely Ends Legal Dispute Over Reed Pension Initiative

The legal dispute involving San Jose Mayor Chuck Reed’s proposed statewide ballot initiative is over, at least for now.  We previously reported on the initiative, which sought to amend the California constitution to allow state and local governments to alter pension formulas for current employees.  In effect, the initiative would have permitted state and local governments to renege on promises made to public servants.  

Reed hoped to place the initiative on the ballot for the November 2014 election.  However, a dispute arose over the title and summary for the ballot measure drafted by Attorney General Kamala Harris.  Reed took issue with the Attorney General’s summary and attempted to challenge it in court.  In March, the Superior Court rejected Reed’s challenge because, according to the Court, Reed failed to prove that the ballot summary was “false, misleading or biased.”  Reed appealed that decision, and withdrew the measure from the November 2014 ballot.  The Court of Appeal has now dismissed Reed’s appeal as moot.  The appeal was likely dismissed because the November election is over.  Reed has indicated that the odds he will seek review by the California Supreme Court are “fairly low,” and that he will trigger a new legal fight well in advance of the 2016 election.

Please review our previous articles on the phony “public pension crises” and a study which concluded that eroding public pensions adversely affects the quality of public services.

For more information on public sector pension issues, please contact your labor law counsel.

By Jake White | December 11, 2014

Legal Developments