City's Proposition B Update

Date: Apr 14, 2021


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.

Document Under Categories: News Articles, Pension, Press Release, Proposition B