March 5 (Bloomberg) — A group of California mayors is opposing a pension-reform referendum that would empower them to reduce expenses while risking their support from unions.

The statewide measure, offered by San Jose Mayor Chuck Reed, would give local officials authority to reduce future pension benefits for municipal employees. Current and former mayors representing 17 California cities are among leaders who oppose his proposal, while three mayors favor it. The measure probably won't make it onto the ballot this November because Reed is suing the state over the wording of its summary.

"Public-sector unions are very powerful, very influential and generally say 'no' to any kind of changes," Reed, a 65- year-old Democrat, said in a telephone interview. "It's impossible to get elected to statewide office unless you have union support."

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.