Politics & Government
Public Safety Workers to Pay Full Employee Share of Pensions
New hires will pay 9 percent, or the full amount of the required employee pension contribution, into CalPERS. The city formerly paid the employee share.
After several grueling hours of negotiations, the has passed a Resolution which will require safety employees to pay their full share--or 9 percent--of pension obligations with the California Public Employees Retirement System.
The new rules will affect and employees hired on or after Aug. 3. Those hired prior to that date will be grandfathered into the Employer Paid Membership Contribution; the city pays an employer share and an employee share into CalPERS.
The move is expeted to save the city a significant chunk of change. Due to the economic downturn, many local governments are rethinking their pension plans and restructuring the costs of those plans.
The cost savings will increase over time as a result of turnovers, retirements and when new hiring occurs, city officials said.