May 10, 2011 > San Diego reaches deal to cut pension liabilities San Diego reaches deal to cut pension liabilities Submitted By AP Wire Service SAN DIEGO (AP), May 06 - San Diego's City Council has approved a deal with major labor unions that they mayor says will dramatically narrow its shortfall to pay lifetime health care for retired city workers. Mayor Jerry Sanders says the tentative agreement announced Friday will immediately shave $323 million from unfunded retiree health care liabilities of $1.13 billion. Workers would be required for the first time to contribute part of their paychecks toward the benefit beginning in April 2012. The council approved the agreement on a 6-2 vote in closed session. The two dissenters - Carl DeMaio and Lorie Zapf - say it doesn't go far enough to reduce costs. San Diego's finances have come under heavy pressure over pension benefits granted to workers in 1996 and 2002.