Public pension reform could be on 2012 ballot in San Diego

Wow, this will create quite a stir: The measure would eliminate guaranteed pensions for all new hires except for cops. Instead, new employees, including firefighters, would contribute to a 401(k)-style retirement plan, where there is no guarantee of return. Supporters say the changes would save $41 million in the first year and $363 million over the first five years. But there will be lots of opposition - and they still have to collect more than 94,000 signatures to trigger an election. From the Union-Tribune:

The proposal includes a list of other changes that would tackle what has been the city's most pressing issue for the past decade -- soaring pension costs that have forced leaders to idle fire engines and reduce library hours. The city's $2.1 billion shortfall in money needed to pay promised pensions requires ever-increasing annual payments that leave officials with little room to maneuver financially.

However this particular measure goes, I suspect you'll be hearing more about alternatives to the traditional defined benefit model, which leaves cities and states on the hook for pension fund shortfalls. In February the Little Hoover Commission proposed a hybrid system that would include a small defined benefit pension program, Social Security (which public workers do not currently receive), and an employer-matched 401(k) component. Obviously, the politics would be formidable - maybe impossible.

Earlier: Little Hoover Commission calls for California pension rollbacks