Los Angeles City Council curbs employee pensions

We all know part of Los Angeles' budget problems have been blamed on unions and their pensions. But today, the city council fought back. All 13 council members agreed to ask voters to cut retirement pay.

There are a couple of clarifications, though. Only police and fire fighter pensions will be reduced, and it will only apply to future employees.

The city's budget carves out 18 percent of money for public safety and city worker pensions. The costs of those pensions are rising, and they are expected to take up one-third of the city's general fund by 2015. Angelenos will vote on ballot in March 2011. If passed, it will affect new hires in July 2011.

The city council also tried to curb pensions for employees of the Department of Water and Power. That department works separately from the rest of the city. Councilman Bernard Parks proposed the measure. But unions showed up in force Tuesday to protest his plan. After much who-ha, the measure was shut down.