only four states can cover the pension obligation. government workers are baskly paid by taxpayers . so they are flooded with red ink right now. if they were not to do the eight percent guaranteed return that the government workers are promise exclude put it down to five percent. you would see california, illinois and new jersey tipping in the red. they are making false promises. you are not guaranteed promised benefits for life. i believe yes, people like cops, firemen and teachers yes, fund them. but the other jobs in the private sector, no, you shouldn't be promised anything. >> john, is it the public pensions that are part of the problem. >> i agree with mike. public sector unions are not bankrupting the but politicians are. they dekraai gry but they allocate themselves better mandates and unions are a symptom of this. if we want to reign in the unions, we must reign in the politicians to apportion more and more of our money. >> vict toria, politicians are always going to spend money that is not theirs. you can pin point the public

basic state pension and its interaction with the second state pension. i pay tribute to the work my honorable friend, the pensions minister, has done on this. such is the complexity of this system, only someone like our pensions minister can work out exactly what someone is entitled to and what they need to v so i can confirm that we will introduce a new single tier pension for futureovehe means t. this is currently estimated at 140 pounds. it will be based on contributions. it will cost no more than the year. we will bring forward further details later this spring. a single generous basic state pension for those who have worked hard and saved hard all their lives. and a further major simplification of our tax and benefit system. mr. deputy speaker, in the information age, people should know what taxes they're paying and what their money is being spent on. now, my honorable friends, the member from ipswich recently proposed to this house that we send to taxpayers an annual statement showing them just that. i think this is an excellent idea and i intend to

the pension manager says okay i'll do that. all of a sudden the state has a budget.ffa sudden everybody's happy. all of a sudden there's a demand for this, this chicanery coming off of wall street. can but then when you look at the actual returns that the pension managers are getting, so like how are your returns? i'm getting, i'm down about 1%. >> smith: yeah, it doesn't actually turn oot the way. >> ratigan: you're like but we got the budget at 7%. >> smith: as, as promised, right, yeah. >> ratigan: and so, the whole, the whole, but the reason that's happening. >> smith: right. >> ratigan: .is because when you do not have retained risk, when the individuals involved in an undertaking. >> smith: right. >> ratigan: .do not share the risk, the quality of their decision making collapses. can i give you an example? >> smith: please. >> ratigan: the best example i've ever seen of decision making without reeained risk on a perronal level is, is you guys ever heard of edgar bronfman, jr? >> smith: yeah. >> ratigan: he was a. >> mith: liquor baron. >> ratigan: .he was the h

fund the amount of money that would cover their pension in the future. and then cass would -- through the cass system, through the government contracting provision, the company would be repaid for that, reimbursed. what happened in the course of the last 30 years is the congress had made changes to arisa, the most latest being in 2006, but they made a multiple amount of changes and cass never changed. so what you had is a situation in which the firms were required to pay a certain amount and were reimbursed this amount over the long term. >> right. >> so you had in a sense that -- we'll go back to that welder, that welder would work on the line and perhaps 20, 30 years down the road the firms would be reimbursed for this. >> right. >> so what's changed is under the passage of the ppa in 2006, instead of a 30-year reimbursement period, we're now coming to 15 or 20, so that means there's bringing forward of the amount of money that can be reimbursed. however, if you look at it, the government always has its liability, the question is when do they pay for i

costs. >> the pension costs for city workers have from $73 million in 2001 to $245 million in 2011. retirement benefits consume more than 50% of t payroll costs. to pay those pensions, the city cut 2,000 jobs, including 49 firefighters and 66 police officers. the new police station is also empty. san jose cannot afford to run it. >> taxpayers are paying for services. they should get those services. we're unable to deliver that and it's just going to get worse. if we don't get control on the costs. >> the pension problems began back in the late 1990s. california was flush with tax revenue from the dot com and housing boom. and politicians gave generous new pension benefits to unionized workers, up to 90% of their salary for life. >> when i first look at the numbers, i do a double-take. >> joe nation studies government pension costs at stanford university. >>> how does the deal that government workers are getting compare to what most people get in the private sector? >> it's out of this world good. let's say you were making $100,000. y

that is often caused clashes with public workers over the cost of their pensions. tony guida tonight takes us to one cash-strapped town that just made a painful and very controversial choice. >> reporter: central falls, rhode island, the state's smallest and poorest city. for years city officials promise odd robust union contracts and pensions without raising revenue to pay for them. last august the math caught up with them. central falls was broke. its pension fund short $46 million. it declared bankruptcy. >> grew up here, went to scale here, it's all gone. >> reporter: retired fair captain mike geoffroy couldn't make the payments on his house after his pension was cut by $1100 a month. >> this is when i was two areas old, may 1st fire truck. >> reporter: the small apartment he now calls home is a schryne to better days and-- fond memories. >> we were all been and raised there. we worked for the city. it was just very disheartening the way they are treating us. >> reporter: former judge robert flanders now runs central falls as its receiver. he took the city into

you have the pension. as the salaries have gotten bigger the pensions have gotten bigger. join if it was gavin that .ed out so these pingses are count count -- these pensions are out of control. >> are you saying we should kill everybody in. >> yes. >> you make me sick, both of you do. >> when you say the people you work with are hard working and he said you work a great job and get to kill -- great job. >> i won't tell them what you did in a former life. but as you know the last thing you want to do is kill somebody. the idea is to protect your country and your children. i am talking about people ready to lay down their life. killing happens. not my favorite thing. people who are willing to die for their country for very little money -- i mean i have got to tell you i have friends of mine getting out of the social forces because after the seals trial they say "i don't want to go to trial for defending my country." and they are not doing it for the money or the pension. they are getting out because they can't serve anymore. that's the reason they did it. not for the money.

pensioners next month will receive the largest ever cash increase in the basic state pension of 5030 a week. now we want to simply phi, i pay tribute to the honorable work the pensions minister has done on this. such is the this system. only someone like our pension's minister can work out what someone's entitled to and what they need to save, so i can confirm we will introduce a new single tier pension for future pensioners set above the means test, this is currently estimated at 140 pounds. it will be based on contributions, and it will cost no more than the current system in any year, we will bring forward further details later this spring. a single generous basic state pension for those who have worked hard and saved hard all their lives and a further major simplificatio simplification. people should know what taxes they're paying and what their money is being spent on many my honorable friends, the -- we send to taxpayers an annual statement, showing them just that. i think this is an excellent idea, and i intend to put it into hmrc contacts roughly half of taxpayers each year fr

i've also said we would consider proposals to manage future increases in the state pension age, beyond the increases already announced. i can confirm today there will be an automatic review of the state pension age to make sure it keeps pace with longevity. details of how this will operate will be published this summer. one area where government spending is expected to be lower than planned is as the prime minister just indicated, afghanistan. we were reminded again yesterday of the sacrifice so many of our servicemen and women have made. and as the prime minister made clear with the u.s. president last week, uk forces will cease combat operation by the end of 2014. as a consequence, i can tell the house that the cost of operations which are funded by the government's special reserve, and entirely separate from the defense budget are expected to be a total of 2.4 billion pounds planned. let me be clear today, the full cost of operations will continue to be met from the reserve and our braved armed forces will get the equipment they need to complete the job. but i can ensure the sum of

. >> there is no way to pay the bill, pension pay outs must be cut. the tough decision facing voters. >> and the biggest solar storm in years and it's coming toward the earth as we speak. what could happen when it gets here. >> it was popping up all over facebook. a social media test that could help the government catch a war lord. >> the idea to save kid from being forced in to sex slavery and into battle. it's important that everybody know this story. >> reporter: a davis park of church, a lofty goal. get the audience to care and do something about a contradict nine thousand miles away. they will try with a viral video. if you haven't heard of it you will soon. the half hour documentary is a social test to pressure people to find him. he has kidnapped children and forced them into his army or turned them into sex slaves. >> my brother tried to escape. then they killed. >> did you see it? >> i saw. >> reporter: after years of rallies and meetings the film maker convinced the president in october to send 100 military advisors to track down and capture

the thing to note there is that the original pension applications went through the state courts. there could have been a pension application that was kicked out through the state courts and never made it -- that's possible. the other possibility is that pensions were given only on a need basis and any survivors of robert williams could have been in good financial state and not needed the money. of course, this is presented as a theory with evidence and is not meant to declare the identity of the man whose remains were found in the turret. and i and my project supervisors do not claim to be medical experts. and the last -- just so that we don't leave on a sad note here, clark rowe applied for a pension for his "uss monitor" service. he said that he enlisted on march of 1863 and was discharged in march of 1865. now f you're going to commit a federal crime, i will advise that you go to the library first. he failed. thank you. [ applause ] >> we are consistent with the day over on time. but if you have any questions, we'll take two or three real quick. we're back on schedule. hey, tha

the average firefighters will leave here with an annual pension of about $90,000 a year. think that's justifiable to the tax payer? >> that is what was negotiated over time. that's the agreement. we've certainly seen the need for a market correction and the benefit's going to come down. >> reporter: sapien says firefighters are willing to cut benefits from 90% of salary to 75%. the mayor wants to cap it at 65% for new hires and require current workers to pay more into the system. voters will decide on the mayor's plan this summer. the unions now plan to sue the city. >> we have come to the table. we have offered to give even more and all we've heard from the city is "here's our ballot initiative." >> reporter: the mayor hopes controlling pension costs will get his city back on track and finally open those empty libraries. ben tracy, cbs news, san jose. >> pelley: well, money's no problem for these folks. they top the "forbes" list of the rich nest the world. number three this year, warren buffett, $44 billion. bill gates number two at $61 billion. and the richest man in th

the focus of the state lawmakers should be how to get the rise in pension costs under control. the republican and democratic state senators alike say the state can't continue to pay. county officials say that they are already fighting off deficits. senator brinkley from frederick addressed the elephant in the room by saying this assures the pension payments do not happen at the promise of pension benefits to teachers has to be broken and benefits have to be recinded. that is drastic and that idea has to be considered, along with the state getting more serious about mandating changes to the pension plans and not only for newly hired teachers. employee contributions should be on the table. federal employees contribute anywhere from just below 1% to as much as 2.3% for newly hired employees. while it might be difficult to change benefits, states have more flexibility to change who contributes and how much. that is according to a recent report released by the government accountability office. governor o'malley and county officials play a-pay, no, you pay game to, the residents of ma

after news of the surplus hit, police union president announced the latest pension deal sent to the police and fire could opt for a new pension plan, lower divisions and triggered pay cuts if they miss enrollment targets. the mayor's pension form would drive them away. >> they are going to destroy my apartment. i don't want to be in the position where my place is destroyed. >> it's unclear if the worst is over, but at least the bleeding has stopped for now. cbs 5. >> a surprise loss of millions of dollars is forcing the cancellation of some classes. the state is low on revenue, so it asking colleges to make more cuts. it means another $3.5 million on top of $13 million that was cut for this year. as a result, some employees will be furloughed for 15 days and some classes have been canceled. >> second language? we cut some history classes. >> a total of 80 classes are cut, that's 2% of all classes. >>> it's famous worldwide. people call it the crookedest street in the world. it looks more like the crookedest river in the world this afternoon. that after a car knocked over fire hydrant

while governor o'malley and county officials play a you pay, no you pay game with the pension bill, the can only look forward to a growing problem in years to come unless there are serious changes to how pension benefits are paid for. the state and the counties cannot continue to foot the entire bill. we hope this issue is not kicked down the road again. that's my take. let me know what you think. go to www.myfoxdc.com and click on that's my take or send me an e-mail at tmt at wttg.com.   >> this fox 5 sports update is brought to you by acura, acura, advance. turn left. the passat is one of nine volkswagen models named a 2012 iihs top safety pick. not...that... we'd ever brag about it... turn right. come on, nine. turn left. hit the brakes. huh? how did that get there? [ male announcer ] we can't hide how proud we are to have nine top safety picks like the passat and jetta. so we're celebrating with our "safety in numbers" event. that's the power of german engineering. right now lease the 2012 jetta for $159 a month. >>> babbling baby jonah is beebopping and this video

it remains at historic lows not seen since the 1960's. pension reform is another prime example of what i have been talking about. the key to meeting our challenges in the future. across the country, pension reform was a wedge issue. it shut down governments and divided people. here in san francisco, we once again showed that we are a city that knows how. we brought everyone to the table. be put in the long hours. we had tough negotiations and reduced the pension reform measure with business, government, and labor standing side by side. we did it in a way that reflected all of our hard- working city employees. where else have you seen that across the country? while we are on the subject, let's take a moment to remember [unintelligible] [applause] war and was at the center of reform, as he was with so many great causes. -- warren was at the center of reform, as he was been so many great causes. we will always remember your measurable contribution. we miss you. pension reform reminded us that we can solve the problems, if we just set aside small dif

the pension question is something that comes up. e cost of our pension liability will cost the city, especially because of our investments in the market have come down since 2008. we are spending more of our general fund to pay our pension costs. that is a big challenge. it is a long-term problem, but it also has short-term implications. we know right away we are not going to have the enough money as we need to cover our services and pension costs as well. i support efforts to figure out short-term solutions around contributions that workers can make. it is important to work collaborative way, as much as possible with labor, organizations, to come up with solutions. we have to figure out, jobs are at stake. we have to cut positions, services. if we do not resolve the pension issue, we will have to cut services in a way that will be harmful to san franciscans. fewer options for muni, parks deteriorating, less investment in public infrastructure, if we cannot resolve these issues. the tide is rising. we need to figure out how to swim q

the city is preparing for a june vote on public employee pension reform. ecock is on the air right now. thank you for taking the time to simulcast with us. i used lo live in north county san diego. like wisconsin, like ohio, like detroit right now and elsewhere, is this a battle between the government unions and the taxpayers? >> it absolutely is, larry. thanks for having me on. the fact is here and throughout the country the battle is between those who believe in the government of, by and for the people and the unions who believe in a government of, by and for the unions. the idea that the unions elect the city councils and boards and commissioners and they get in there and negotiate with themselves and their puppets on these board and come up with wild, incredible health care, free health care in retirement. we have a head librarian in san diego earning $170,000 a year, worked and earned it but gets $270,000 in retirement. we can't do it. >> how much work on the pensions -- are the pensions for the city of san diego better, stronger, richer than the priva

leaders will meet to put the finishing touches on a pension reform measure. how much more should public employees pay? bob joins us live outside of san jose city hall where the question is raised how big this budget gap is. good morning. >> reporter: good morning to you, laura. that's one reason why they are expecting a full house in chambers when the council meets at 1:30 this afternoon because they are going to be finalizing the language for the pension reform ballot insure. that wording is expected, is due to the rush to voters by friday so it can get on the ballot for june 5. mayor chuck reed has been arcing that the city needs to cut back on what it contributes for employee retirement plans because it cost so much. right now san jose pays almost $250 million a year in pension. so after much back and forth with employees and the union the council is expected to approve language that would give employees a choice. join a lower cost plan with lesser benefits or stay in the current plan and contribute more. new employees would be forced into a lower cost plan

the second state pension. i pay tribute to the work my honorable friend, the pensions minister, has done on this. such is the complexity of this system. only someone like our pensions minister can work out exactly what someone's entitled to and what they need to save, so i can confirm that we will into -- introduce a new means test. it will be based on contributions, and it will cost no more than the current system in any year. we will brick forward further -- bring forward or further details later this spring. a single, generous pension for those who have worked hard and saved hard all their lives and a further major simplification of our tax and benefit system. mr. deputy speaker, in the information age people should know what taxes they're paying and what their money is being spent on. now, my honorable friend, the member from ipswich, recently proposed to this house that we send the taxpayers an annual statement showing them just that. i think this is an excellent idea, and i intend to put it into practice.

they will ask them to seek mediation in the pension reform matter. >> we have a collective bargaining agreement that the city's proposition would violate. we want them to rule on whether the measure is iniolation of our collective bargaining agreement. >> that are measure, measure b would revamp the pension plan that reduces and requires current workers to pay more towards retirement. >> veterans took to the streets to remember the ninth anniversary of the start of the war. the group had 481 pairs of boots in memory of the members killed in the iraq war. members of the group launched for over an hour. police stood by and allowed them to demonstrate. even though the war is over, the u.s. should remember casualties. . >> we are block the street for one second for every veteran who died in combat or suicide since iraq started. >> the u.s. pulled troops out of iraq in december. >>> the army staff sergeant accused of killing 16 civilians met with their attorney for three hours. robert bales is in solitary confineme confinement. he enlisted after 9/11, give up a job as a stockbroker. he was

they signed this requesting an audit of the city's finances and pension obligations. gues in sacramento will decide on wednesday whether to approve this request. nbc's unit presented a report that found that mayor chuck reed of san jose inflated the estimate of future pension costs by hundreds of millions, allegedly to strengthen his argument in negotiation with unions and workers. whatever is learned would help shape new pension reform laws. >> i think the way they go about making projections should be transparent. we ought to have an open process so we can see what the liabilities of the city are. there are serious liabilities and we ought to find out what the facts are. >> reporter: incidentally, the city council in san jose will meet tomorrow to consider modifying a ballot measure going before voters in june, that would reduce pensions and force employees to contribute more. bob redell, "today in the bay." >> 6:52. thousands of college students will board buses heading to the state capitol. last week students staged demonstrations at several bay area schools includ

after nbc's investigative unit -- the audit will focus on the finances and the pension obligation. the audit should take four months to complete but the pension reform measure will be on the june ballot. >> it's 4:36. more than 100 teachers and staff of alameda school district will get layoff notices. the school district approved the notices this week. they have to determine how many jobs they will cut. the school board is looking at other ideas including a parcel tax and cutting music and art classes. >> one of the biggest food banks is struggling to stretch its budget. second harvest food bank says high fuel and food prices are forcing fewer deliveries to shelters. most of the popular items have seen double digit increases in costs. the organization is asking for your donations to help feed the 250,000 people it reaches out to every month. >> an unusual sighting in the water near crissy field has ship captains on alert. a gray whale was spotted and caught on tape by one of our photographers. look beyond the orange ball. did you see it, the spout of water, then the whale breaching.

hoping to ing convince lawmakers to "faii" the pension proposal. otherwise, counties... teachhrs.... re likely to face layoffs.....he ultimate test....of a real life math problem.... with people and pupils... on the line.((ovvr) 13:13 "that would be the equivalent to 225 teachhrs." melinda roeder... fox 45 news at ten. bruce cunningham has fox 45 mmrning sports. sports. cominn up in our 6 p'clock hour... casey anthony is bacc in the spotlight... but her lawyer says... she won't bb for long. what legal case... he's fighting to have dismissed.

what did they do to the pensions. >> no, look, who bias these mortgage-backed securities. institution at investors. a very typical investor was a pension fund. the new york city retirement fund, los angeles county retirees, state of mississippi retirement fund, all these people went to bank of america and bath mortgage-backed securities that they thought were very high quality. what people need to understand is that the fraud on wall street, they think of some abstraction, bankers ripping off other bankers, inside trader scheme is a victimless crime they're essentially stealing your life savings. stay tuned for the answer. rrenttv

people were demanding answers about the pension controversy. an issue that our investigative unit first exposed. they wanted to hear from chuck reed, have him explain why he may have used an exaggerated number to sell the idea of pension reform. the mayor has said no matter the exact price tag, pension reform is needed now. we will have more on what's next in this fight coming up tonight on our 6:00 newscast. >>> follow-up tonight after the discovery that the sfpd has not been tested breathalyzers for accuracy. kimberly tere joins us live in san francisco. now hundreds of cases could be tossed out? >> reporter: hundreds of cases, thousands of them are being reviewed right now. several dui attorneys told me that once the story broke, they started getting phone calls from clients wondering how this might effect them. the district attorney, the public defender, and also private attorneys again pouring through old records trying to figure out exactly how many people this might impact. >> we have known for a long time, the machines used in dui evalua

i think manufacture us know that the pension, the cost of the pension is for the teachers is higher than what's being spent on education. so obviously there's a disconnect there. the question i have is if we're not looking at that or should we welcome at that. if you were given the opportunity to redesign how education would be done in this country, what would it look like? i've heard so far first get rid of liberal arts. that's quite extreme. and then i heard, you know, go become a u.p.s. driver. and i don't -- i don't really get a comfortable feeling with that solution. so i -- >> most of them have liberal arts degrees anyway. >> i'm just saying, we have smart people in this room. what would you do? how would you redesign our educational system? and i just threw in that variable of the teacher's union if you choose to touch that. >> thank you. that's a big apple. >> first of all, i don't think people that work for government should be allowed to unionize. they want to work for the government, the whole thing is corrupt from the beginning. it's like a terrorist organization. you know, s

huge portion of the budget every year going to fund pensions. >> initiative could force the new cityivate sector style 401(k)s. current retirement would be based on the base salary, not ascrecrewed sick and -- accrued sick and vacation time. >> if you didn't give them lavish pension we couldn't recruit the same employees. those arguments were false. they led us down the wrong path. >> we are the ones that are being demonized by carl demile, every day acting as if we are the ones with the six-figure pension. >> unions say average workers aren't the issue. it's the white collar management dropping the pension. a retired librarian left her job with $234,000 annual pension. >> i want the taxpayers to know that government employees are going to receive no better retirement package, retirement contribution than the hard-working families that pay the bills. taxpayers. >> san diego edition of this is similar to one in san jose, where the officials blame soaring pension for inability to start new library and police station. stockton is considering bankruptcy to avoid the pension obligations.

the woman was taken to a local hospital. >> a hurdle for san jose's pension reform. there was an attempt to block a june ballot initiative. they were asking the superior court to review the wording of measure b. the argument is it's written in a way that encourages voter approval. they will ask the court to seek mediation in the pension reform matter. >> we have a collective bargaining agreement that the city's ballot proposition would violate. we want an ash traitor to rule on whether the ballot smsh in violation of our bargaining agreement. >> measure b revamps the pension plan, reducing benefit for new hires and require current workers to pay more towards their retirement. >> jewish centers are stepping up security in the aftermath of a deadly school shooting in france. extra security can be seen outside the gates of several jcc locations. they are checking cars and looking for anything suspicious. it's in response to a shooting today in a jewish school in france. a man on a scooter opened fire, killing four people, including three children. >>> next, rescue at sea

>>a new committee met for the first time today to figure-out ways to fix the state's crippled pensionepublican house leader tom cross is chairing the committee. he is spearheading pension reform, and has repeatedly sighted our wgn-tribune investigations of pension abuse. these investigations have led to federal investigations. now cross is concerned about the pensions are being invested. . >> we just want to make sure this is not a situation where the pension system is taking in a prepared riskinappropriate risks. >> if you get very aggressive and have great returns i would disagree with that. >>cross says pension experts have described illinois' pension system as among the worst funded in the nation. . >> today the president has an answer to calls requesting to take the troops home. >> a man stole thousands of dollars worth of detergent that story coming up. >> also using homeless we're cracking down on medicare fraud. the healthcare law gives us powerful tools to fight it... to investigate it... ...prosecute it... and stop criminals. our senior medicare patrol volunteers... are teac

the attorneys say they will ask the courts to seek mediation in the pension reform matter. >> we have a collective bargaining agreement that the city ballot proposition would violent, so we want an arbitrator to rule on whether the ballot measure is in violation of our collective bargaining agreement. >> measure b would revamp the city pension plan, benefits for new hires and require them to pay more towards retirement. this comes under the heels of an investigation that an inflated figure was used on the obligation to sell the idea of pension reform. >>> big time mess in menlo park this morning. a broken water main sent thousands of gallons gushing onto the streets for almost three hours this morning. the 16" pipe broke about 3:00 a.m. near sharon park. crews had to shut off the water by 6:00 a.m., got it shut off, but had a tough time doing it. >> water and mud was so deep that we couldn't shut the valves off, get it under control. i had to go out about 100 yards to the next set of valves, they were also under water. so we had to go way out, 2, 300 yards, start shutting valves off.

. >> a full house is expected at the city council meeting over pension reform. the council is set to vote on the wording of a measure for the june ballot. an investigation found the mayor using inflated estimates of the pension obligations for the coming years. it comes one day after seven california lawmakers asked for a state audit of the city's finances. mayor chuck reed calls the lawmakers' demands politically motivated but says he would not object to an audit. >> student protesters are facing trespassing charges this morning. last night at the state capitol for refusing to leave the rotunda. they were among thousands in sacramento protesting the rising cost of higher education. >> what would you say to those who say this is not an effective way to accomplish your goals? >> i would like to see what their alternatives are because i think this is pretty effective. >> they are learning how to make politics work. because there are so many people that are not being eowe their needs are not met. >> 68 people were charged with trespassing. the governor says his june

the cones set. >> 5:01. critical meeting this afternoon on san jose's pension reform. among the issues, should public employees pay more. bob redell joins us outside san jose city hall with the highly charged issue. good morning. >> reporter: good morning. the city is expecting a full house packed with city employees and union members when the council meets later this afternoon to finalize the wording of its pension reform measure. the exact wording so the register of voters can get it on the ballot. mayor chuck reed has been arguing he needs to cut back on what it contributes to employee retirement because it costs too much. san jose pays almost $250 million a year for pensions. so today after much back and forth with employees and the union the city council is expected to approve language that would give current employees a choice. join a lower cost plan with lesser benefits or stay in the current and contribute more. new employees would be forced sbo a lower cost plan and pay half the cost. it would be more difficult to collect disability benefits. assuming the city

what did they do to the pensions. >> no, look, who bias these mortgage-backed securities. big institution at investors. a very typical investor was a pension fund. the new york city retirement fund, los angeles county retirees, state of mississippi retirement fund, all these people went to bank of america and bath mortgage-backed securities that they thought were very high quality. what people need to understand is that the fraud on wall street, they think of some abstraction, bankers ripping off other bankers, inside trader scheme is a victimless crime they're essentially stealing your life savings. >> great job, thank you for joining us. >> thank you, cenk. >> this is one of the largest thefts in american history happening right under our nose >> one general in the war on women claims there isn't such a thing, it's all politicalcurra brought to you by the 2012 fiat 500. visit fiatusa.com [clucking]. everyone wants to be the cadbury bunny. cause only he brings delicious cadbury crÈme eggs, while others may keep trying. nobunny knows easter better than cadbury! an energizin

what did they do to the pensions. >> no, look, who bias these mortgage-backed securities. stitution at investors. a very typical investor was a pension fund. the new york city retirement fund, los angeles county retirees, state of mississippi retirement fund, all these people went to bank of america and bath mortgage-backed securities that they thought were vy high quality. what people need to understand is that the fraud on wall street, they think of some abstraction, bankers ripping off other bankers, inside trader scheme is a victimless crime they're essentially stealing your life savings. stay tuned for the answer. >> one general in the war on women claims there isn't such a thing, it's all political theater, coming up. brought to you by the 2012 fiat 500. visit fiatusa.com attack on women that perhaps the majority of the population woke up? >> idaho is not known as approaching act i.v. you had hundreds of women show up, thousands signed petitions. they made their voices heard. what happens is that now, the legislators are running scared. very similar laws have passed q

what did they do to the pensions. >> no, look, who bias these mortgage-backed securities. ese big institution at investors. a very typical investor was a pension fund. the new york city retirement fund, los angeles county retirees, state of mississippi retirement fund, all these people went to bank of america and bath mortgage-backed securities that they thought were very high quality. what people need to understand is that the fraud on wall street, they think of some abstraction, bankers ripping off other bankers inside trader scheme is a victimless crime they're essentially stealing your life savings. that's what went on in 2006, 2007, 2008 and beyond and they still haven't paid the money back. >> that's the case of the mortgages, ripping off the retirees. then the case of the municipal bonds ripping off the local cities and cities like jefferson county counties like jefferson county go bank result and everybody loses their money. they take the money from someone, it's us ultimately they take it from. as i'm reading your long piece here constantly, the theme that they com

the mayor still plans on trying to put pension reform on the june ballot. >> we've cut, cut, cut for 10 years. now, we need to begin to stop the cutting and start restoring services, but pension reform is a critical part of that. >> we always knew things were not as gloomy as the mayor was painting them. >> reporter: hours after news of the surplus hit, police union president announced the latest pension deal sent to the city. police and fire could opt for a new pension plan with higher retirement ages, lower contributions, and triggered pay cuts if they miss enrollment targets. the union says the mayor's pension reform would drive cops and firefighters away. >> they go forward with their plan, they are going to destroy my department. i don't want to be in the position where my department's destroyed and lie and say i told you so. >> reporter: budget wise, it's unclear if the worst is finally over, but at least the bleeding has stopped for now. in san jose, kiet do, cbs 5. >>> back to our top story, deadly tornadoes have obliterated entire towns to our east, killing at least 32 peopl

the fate of the city's pension battle coming up. >>> plus, the day is finally here. the big announcement today about apple's newest ipad. >>> and taking on tinseltown, one man's lawsuit over the high price of popcorn. >>> we' back at 4:41 now. it's faster, sharper and more addictive apps. that's what analysts expect from the new ipad to be unveiled in san francisco this morning. many think it will have a quicker processor plus an option for faster wireless access. no details have been released. one clue is in the product launch invite, apple says, quote, we have something here you really have to see and touch. 5:20 coming up this morning, cnet editor-at-large brian cooley joins us live with more on the announcement. >>> stocks had a big setback, dow down 204 points while the s&p and the nasdaq both dropped by more than 1%. investors are worried about greece's future and high oil prices. >>> by an 8-3 vote, the san jose city council has approved a modified pension reform measure for the june ballot. retirement costs for the city have more than doubled over the last de

i can confirm today that will will be an automatic review of the state pension age to insure it keeps pace with increases in longevity. details of how this will operate will be published alongside the obr's fiscal sustainability report this summer. one area, mr. deputy speaker, where government spending is expected to be lower than planned is, as the prime minister just indicated, afghanistan. we were reminded again yesterday of the sacrifice so many of our servicemen and women is have made, and as the prime minister made clear with the u.s. president last week, u.k. forces will cease combat operation by the end of 2014. as a consequence, i can tell the house that the cost of operations which are funded by the government's special reserve and entirely separate from the defense budget are expected to be a total of 2.4 billion pounds lower than planned over the remainder of the parliament. the full cost of operations will continue to be met from the reserve, and our brave armed forces will get the equipment they need to complete the job. but i can insure that some of the benefit of the