Jan 24, 2012 11:14 PM by Associated Press (JR)
SAN JOSE, Calif. (AP) - City leaders in San Jose are taking steps to eliminate their own state-run pension plan.
The San Jose Mercury News reports (http://bit.ly/xOS6h1 ) that the city council voted unanimously on Tuesday to notify the California Public Employees' Retirement System that the city intends to end the pension plan for council members.
Once CalPERS has been notified, it will begin to tally the cost of ending the pension plan, including paying off any shortfalls in the fund.
Council members still won't see their pensions end immediately, because that move requires a two-thirds vote to become final.
Councilman Pete Constant says the council members' pension plan is underfunded by more than $400,000 dollars.
City employees are covered under a separate municipal plan.
Information from: San Jose Mercury News, http://www.sjmercury.com
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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