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The City of San Diego officially reopened its pension plan to all non-police employees hired by the City on or after July 10, 2021 - almost exactly nine years from Proposition B’s effective date. Such employees will fall into the most recent plan tier according to their member classification – General, Safety Fire, or Safety Lifeguard. Please review your pension plan summary according to hire date here. Police Safety members continue to be enrolled in a defined contribution plan while in the Police Academy and become SDCERS members once they are sworn.
However, we still do not know exactly how the trial court’s ruling will be implemented with respect to those non-sworn police officers hired by the City between July 20, 2012 and July 9, 2021, who have been participating in a 401(k)-style plan rather than the pension system. The City and relevant labor unions are in continuing negotiations. Please remember that SDCERS administers the City’s pension system pursuant to the relevant provisions of the City Charter and San Diego Municipal Code – it does not play a part in negotiating the pension benefits it is charged with administering. Please direct any questions regarding Prop B to your respective labor union representative or to the City’s Human Resources Department.
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As you may know, Proposition B (“Prop B”) was the San Diego ballot initiative that went into effect July 20, 2012 and amended the City Charter to close the City’s pension system to all new hires except for sworn City police officers. This ballot measure has been in litigation since its inception. In January 2021, a San Diego state trial court issued a verbal ruling from the bench, declaring Prop B to be invalid. This verbal ruling was followed by a written statement of decision, and proponents of Prop B had until April 9, 2021 to appeal the trial court’s ruling.
No appeal was filed by the deadline, which means the trial court’s invalidation of Prop B is final. However, we still do not know exactly how the trial court’s ruling will be implemented. So, what happens next?The City and labor unions will enter into negotiations to decide how the trial court’s decision will be implemented.The City will have to take legislative action (i.e., pass a City Ordinance) to remove Prop B from the City Charter and, if applicable, the San Diego Municipal Code.Once the above actions are completed, we will have more information about enrolling City Members hired since July 20, 2012 into an SDCERS pension plan and their options moving forward. Until then, Proposition B is still in effect – meaning all new City hires (except sworn police officers) since July 20, 2012 continue to contribute to the City’s SPSP-H plan in lieu of participating in an SDCERS defined benefit pension plan.If the invalidation of Prop B affects you, SDCERS anticipates that we will contact you on an individual basis once the above actions have been completed.
NOTE: SDCERS administers the City’s pension system pursuant to the relevant provisions of the City Charter and San Diego Municipal Code – it does not play a part in negotiating the pension benefits it is charged with administering. Please direct any questions regarding Prop B to your respective labor union representative or to the City’s Human Resources Department.
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Proposition B was the San Diego ballot initiative that went into effect July 20, 2012 and amended the City Charter to close the City’s pension system to all new hires except for City police officers. This ballot measure has been in litigation since its inception. Please visit our FAQ’s for more information about the history of Proposition B.
Recently, opponents of Proposition B gained momentum in their quest to overturn the ballot measure: On January 5, 2021, a San Diego state trial court heard oral arguments in this matter and issued a verbal ruling from the bench, declaring Proposition B to be invalid. Currently, the court is drafting a written statement of its decision, which will direct the City Council to erase Proposition B's language from the City Charter. We do not know exactly how this ruling will be implemented – whether it will retroactively provide pension benefits to all City employees who were affected by Proposition B, if these employees will be compensated some other way and begin earning pension benefits prospectively, or if some other resolution will be negotiated. However, it is worth noting that if the trial court's decision is appealed within 60 days of the court’s written statement of decision, any enforcement of the decision may be stalled until the appeal is resolved.
Note: SDCERS is not a party to this litigation. SDCERS administers the City’s pension system pursuant to the relevant provisions of the City Charter and San Diego Municipal Code – it does not play a part in negotiating the pension benefits it is charged with administering.
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On August 2, 2018, the California Supreme Court overruled the Court of Appeal's decision regarding Proposition B. The Supreme Court found that a violation of meet and confer labor laws occurred in connection with the passage of Proposition B and sent the case back to the Court of Appeal to address the appropriate remedy for the violation. The Supreme Court's decision does not require any immediate action by SDCERS. Although SDCERS is not a party to these legal proceedings, SDCERS will continue to monitor these legal proceedings and will update this website and its members when it receives additional information. Represented City of San Diego employees should contact their labor union for additional information and unrepresented City employees should contact City Human Resources.
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On July 27, 2017, the California Supreme Court announced they have agreed to review the Fourth District Court of Appeal ruling on Proposition B. In 2012, Proposition B closed the defined benefit retirement plan to newly hired City of San Diego employees, other than sworn police officers. City unions challenged the legality of Proposition B on the grounds the City violated unfair labor practices by failing to meet and confer over the proposition. In April 2017, the Court of Appeal found the City did not violate unfair labor practices, thereby clearing the way for the City to continue to enforce Proposition B. Today, the California Supreme Court agreed to review the Fourth District Court of Appeal’s ruling.
The outcome of the California Supreme Court’s review is uncertain. SDCERS will continue to monitor developments on the issue and work with the parties involved on the outcome of any further court proceedings.
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On April 11, 2017, the Court of Appeal found the California Public Employment Relations Board (PERB) erred when it concluded the City of San Diego violated unfair labor practices by declining to meet and confer over Proposition B, a citizen-sponsored initiative. By annulling the PERB’s decision, the Court of Appeal cleared the way for the City to continue to enforce Proposition B.
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On March 17, 2017 at 9:00 AM, the Fourth District Court of Appeal will hear oral argument regarding the City of San Diego’s appeal of the California Employment Relations Board’s (PERB) ruling on Proposition B. Proposition B, approved by the City of San Diego voters in 2012, closed the defined benefit retirement plan to City employees hired on or after July 20, 2012, other than for sworn police officers. PERB ruled the City violated the law by failing to meet and confer with City unions prior to supporting Proposition B. PERB ordered the City to, among other things, meet and confer with the unions, to reimburse the unions for their costs and attorney’s fees for the unions’ anticipated legal action to overturn Proposition B, and to make the affected employees whole. The City’s appeal seeks to overturn the PERB’s ruling.SDCERS will monitor this case and work with the parties involved on the outcome of the Court’s proceedings.
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On January 25, 2016, the City of San Diego petitioned the Fourth Appellate District Court of Appeal to vacate a ruling by the Public Employment Relations Board (PERB) that would unwind Proposition B, the 2012 pension-reform initiative. Learn More...
Proposition B, approved by the City of San Diego voters in 2012, closed the defined benefit retirement plan to City employees hired on or after July 20, 2012, other than for sworn police officers. Four City unions filed a complaint with the California Public Employment Relations Board (PERB), contending, among other things, the City failed to meet and confer with the unions prior to supporting Proposition B, in violation of the Meyers-Milias Brown Act. Learn More...
Since the passage of Proposition B – otherwise known as the Comprehensive Pension Reform Initiative (CPR) - SDCERS has received questions from City of San Diego members about how the measure affects their retirement benefits. While SDCERS’ is neither affiliated with nor involved in Proposition B, it is important for our members to understand the initiative. Learn More...
San Diego voter-approved ballot initiative “Comprehensive Pension Reform” (Prop B) provides that, with the exception of sworn Police Officers, City employees initially hired on or after its effective date are not eligible for membership in SDCERS. Proposition B was chaptered and became effective on July 20, 2012.
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In response to inquiries from Members regarding Proposition B's effect on reciprocity, SDCERS is posting these FAQs: Learn More...
SDCERS is neither affiliated with nor involved in Proposition B. Below is a PDF of Proposition B for reference, and a link to a recent related "Latest News" item published on this website. Learn More...
The City’s Independent Budget Analyst requested SDCERS’ Actuary, Cheiron, to provide assistance in preparing a cost analysis of several key components of the Comprehensive Pension Reform (CPR) Initiative. See the attached files for more details. Learn More...