San Jose's Fuzzy Pension Math

Sheriff Laurie Smith Retracts Endorsement of Councilmember Rose Herrera

Citing concerns about Rose Herrera’s past, Santa Clara County Sheriff Laurie Smith retracted her endorsement of San Jose City Councilmember Rose Herrera today.  Read more here. 

San Jose's "New Fuzzy Math"

On the heels of being exposed for using a bogus $650 million dollar pension projection that defied logic, the NBC Bay Area (KNTV) Investigative Unit has now exposed that taxpayers are getting ripped off by San Jose's "outside private contractor" that replaced city workers in its once nationally recognized Anti-Graffiti Program. See the investigative report.  

Contracting out city workers has failed and the residents of San Jose are suffering, Graffiti has increased in seven out of 10 City Council Districts in San Jose and Gang graffiti has increased by 10% since the City Council majority contracted out the work.  Too make matters worse the L.A.-based firm is over budget!  City Council member Rose Herrera, who voted to dismantle the Anti-Graffiti program and outsource it to a Los Angeles firm has seen GRAFFITI INCREASE BY 63% IN DISTRICT 8/EVERGREEN.  Failed leadership with grave consequences. See the full story.

Appellate Court re-writes SJ's Measure B to Comply with the Law

6th District Court of Appeals Issues Unanimous Ruling Stating San Jose's Pension Ballot Measure is "Impermissibly Partisan and Misleading." City Workers are holding a press conference to discuss the changes to Measure B. Read the court ruling.

Late Thursday, a three-judge panel of the 6th District Court of Appeal issued a stay on our writ of mandate and ordered the City of San Jose not to submit Measure B to the County registrar of voters for the June 5, 2012 primary election until further order from the court.  They wrote in their order this:

"Good cause appearing, the parties are notified that this court is considering issuing a peremptory writ of mandate in the first instance.  Real parties in interest (the City) may serve and file on or before 10:00 a.m. on Monday, April 9, 2012, points and authorities (arguments, case law) in opposition to the petition for the writ of mandate.  Petitioners (our side) may reply to the opposition to the petition for writ of mandate.  Petitioners may reply to the opposition on or before 10:00 a.m. on Tuesday, April 10, 2012."

Read the order.

Our writ seeks a neutral and impartial ballot title and question and the appeals court has wide discretion as to what remedy it may order.  Please be aware that they may rule to uphold the trial judge's ruling that only made minor changes to the ballot question and order it back on the June ballot.

Media coverage below:

Mercury News: Appellate court issues temporary stay on San Jose pension reform ballot measure

San Jose Inside: Measure B Off the Ballot ... For Now

NBC Bay Area: Bump in the Road for Pension Ballot Measure

Rough & Tumble: A snapshot of California Policy and Politics

On April 2, California Superior Court Judge Patricia M. Lucas DENIED Pete Constant's attempt to change our No on Measure B ballot argument.  In fact, after extensive written legal briefings and 90 minutes of oral arguments Judge Lucas affirmed that Measure B could eliminate disability retirements for city workers, that some city employees took up to 18% pay cuts, and that health care costs will increase by thousands for widows and seniors.

Pete Constant is the poster child for tort reform and ought to stop wasting taxpayer dollars on frivolous lawsuits.  Pete should exercise better judgment on how he spends his disability retirement income and needs to be reminded that he is the recipient of the very benefits he is now trying to take away from you and that is shameful.  


Read the judge’s ruling.

On behalf of Local 21’s City of San Jose Chapters, Local 21 sent a letter to the City Council today, bringing to their attention the March 25 NBC Bay Area report that exposed manipulation of pension data.

View the NBC Bay Area video that details how San Jose Retirement Director Russell Crosby manipulated the so called "independent retirement plan actuary" to change recommendations, alter presentations and filter information that should have been presented to the independent retirement boards. Read the report.

NBC Bay Area (KNTV) is promoting another segment of their investigative report into the pension scandal in San Jose, it will air this Sunday, March 25th at 11 PM.  Please click on the link below and then forward this link to your email contact list, post it to your Facebook page, and Twitter it!  



After multiple information sessions all day Monday, March 5, AEA, AMSP and CAMP members overwhelmingly ratified our pension savings guarantee proposal to the City. As you’ll see in the letter, our members ratified the proposal by 87 percent. Read IFPTE Local 21’s March 6 letter to the San Jose City Council.

Representatives call for a state legislative audit of San Jose’s finances and pension debts in light of recent investigations showing City leaders and staff using inaccurate pension date. Read the letter.

AEA, AMSP and CAMP members are meeting all day March 5 to hear about Local 21’s pension reform proposal and vote their support for it. Read the meeting invite. See Local 21’s March 2 proposal.

Breaking Pensiongate News:  March 1, the City and the Police and Fire Retirement Board were served a lawsuit seeking an order preventing the Board fiduciaries from expending retirement plan assets that are not in support of plan members or for the good of the plan.  To see the presentation given by Mark Renner from Wylie, McBride, Platten & Renner at the Retirement Board, go here

To read the lawsuit, go here.

Media coverage of the lawsuit can be found here and here.

San Jose City Council members meet resistance in their attempt to get more information on how City staff arrived at a now-debunked $650 million pension cost figure. Read the NBC Bay Area report.

The time for the Mayor to come clean has arrived. This afternoon a federal complaint was filed with the Securities and Exchange Commission (SEC) alleging that the Mayor and other city officials failed to disclose to potential investors the $650 million pension projections they claimed to be true. Either the mayor can come clean to a federal government that he misled potential investors or he can come clean and admit he mislead the public on his pension projections. Either way, he must be held accountable. Read the SEC complaint here.  See the NBC Bay Area report here.

Special Joint Membership Meeting, February 29 at NoonCome learn the latest information about San Jose’s Pension Gate and how Local 21 is fighting to get the truth out and protect your vested pension benefits. Download the flier.

San Jose City Council members ask for an investigation into the bogus $650 million pension cost estimate the City’s been using to support a fiscal emergency and drastic cuts to employee pensions. Read the memo.

NBC Bay Area Investigation report from February 23: “Show me the math. That's what five San Jose city council members are demanding in a memo addressed to the rules committee today. They're asking for an explanation behind a 5-year pension projection used by Mayor Chuck Reed.” 

Recent media on San Jose’s PensionGate:

San Jose Mercury News, February 24

Wall Street Journal, February 23

San Jose Mercury News, February 22

San Jose Mayor Chuck Reed Urged to Stop Lying about Pension Cost and Negotiate Reform with Employee Unions. Read more.

San Jose Elections Commission voted 4-0 to Refer Ethics Complaint Against Mayor Reed and Others to the full San Jose City Council.  Read the Local 21 statement.

San Jose City Employees Vote to File Ethics Complaint Against Mayor Reed & Retirement Department Director

City employees filed a complaint February 9, a day after an NBC Bay Area Investigative Report that exposed misleading pension cost data cited by City administration and Mayor Chuck Reed.  The complaint charges that Reed and others violated public trust, the law, the City Charter and City policy when they deliberately and repeatedly pegged future pension costs at $650 million.  The deceit was an attempt to cut city jobs and slash employee benefits by inflating the City’s budget deficit.  The actual impending pension costs are $295 million – less than half the figure quoted by the Mayor and City administration.

Some City Unions believe in pension reform and have been negotiating pension reform with the City for months. 

The NBC Bay Area 6 p.m. News teaser to the investigative story:


The NBC Bay Area 11 p.m. News investigate report:


To read Local 21’s press release, click here.


To read the ethics complaint, click here.


For more information, click here.



These three recent stories have been published and they cover the San Jose Pension-Gate scandal.  Please read and post comments after each story, let them know how you feel!  You can remain anonymous on the San Jose Inside website and you will need to have a Facebook account to post on the Mercury News website.  Sound off and be heard.  Do your part to ensure that the investigation continues.  And if you have not forwarded the latest NBC Bay Area news report, the last link, please do so NOW!!!  Send this email to your personal email contacts, put the links to your Facebook page and Twitter the stories to your networks.  They lied and we need to make sure they are held accountable....


In Solidarity!!!

Herhold: What Chuck Reed should have said


Ethics Complaint Filed Against Mayor Reed


City Manager Fires Back on Pension Projections.



Internal Affairs: Possibilities for redrawing Board of Education districts endless-- it seems