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Former LA Mayor Abandons Pension Overhaul Proposal

Public employee unions scored a major victory Monday as former Los Angeles Mayor Richard Riordan abandoned his campaign to take a pension overhaul plan to voters next year.

The sudden retreat followed an attack by organized labor on a plan that Riordan said is vital to avoiding municipal bankruptcy. City leaders are coping with a financial crisis and will ask voters next spring for a sales tax increase to avert more cuts. Riordan argued that City Hall should reduce employee pension benefits instead.

The failure of Riordan's ballot drive could push the pension issue further into the background of the 2013 mayoral race. Three City Hall insiders in the contest have criticized the plan, while a Republican outsider has embraced it.

Source: LA Times. Read full article. (link)

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