LOS ANGELES — A California state judge struck down key parts of San Jose's voter-approved pension cuts, finding that the city cannot reduce pensions, but it can cut workers' salaries to pay for higher retirement costs.

Santa Clara County Superior Court Judge Patricia Lucas released her tentative ruling on Monday, which prohibits California's third largest city from forcing its current employees to contribute more to their pensions, as required under last year's Measure B.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.