San Diego Mayor Jerry Sanders this week asked the City Council to submit to voters in November a pension reform plan that would drastically cut benefits for new workers.

Pension reform is a major issue in San Diego, California’s second-largest city, because it faces a $1.2 billion unfunded pension liability, and the failure to disclose its exploding pension liabilities in 2002 and 2003 led to Securities and Exchange Commission sanctions. The pension scandal also cost most of the city’s senior leadership their jobs and left San Diego locked out of the public bond market for four years.

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