Should City Employees Contribute Towards Retirement? (Poll)

City Council imposed a one-year labor deal on Oct. 5 requiring members of the Firefighters’ Association (FFA), the General Employees Group and the Part Time Unit to contribute towards the California Public Employees’ Retirement System (CalPERS) after the groups did not reach an agreement with the city during labor negotiations.

In California, the retirement plan involves a contribution from the employee as well as a contribution from the employer. For many years now, South Pasadena has been paying both the employer part and the employee part. 

“South Pasadena has been paying both the employee portion and employer contribution towards retirement for about 10 to 20 years now. The labor deal is a fair contract,” Councilman Philip Putnam said.

The group that did agree to the City’s labor negotiations was the Battalion Chiefs’ Association (BC). The BC agreed to a two-year contract that consists of members paying 2 percent of their 9 percent employee portion during the first year and paying 3 percent of the 9 percent during the second year. The BC also agreed to terminate tuition reimbursement.

By way of a one-year term of conditions of employment, both the FFA and the General Employees Group are required to contribute 2 percent towards the employee part of retirement (per California labor law, the contract cannot be longer than a year). 

Firefighters will have to pay 2 percent of the 9 percent employee contribution, and general employees will be responsible for 2 percent of their 7 percent employee contribution. By law, South Pasadena will continue to cover the employer's retirement contribution for the FFA employees and General employees.

Economic Pressures

The one-year imposition came at the wake of increased economic pressures.

“The city experienced a $239,000 increase in retirement costs. South Pas employees have the lowest retirement plan in the state but the Council still feels that with the economic times, everyone should contribute,” said Assistant City Manager, Sergio Gonzalez.

Although the Council feels that everyone should contribute, the FFA beseeches the City to stop the cuts.

“All we’re asking is that you don’t make anymore unnecessary cuts to the fire department, especially considering you have a balanced budget and 30% in reserves,” said Cliff Snider, the Association President for the South Pasadena FFA in response to the labor deal.

Even so, Councilman Putnam feels that things could be worse in South Pasadena.

“The state of California and other companies are employing furlough days and layoffs.  South Pas hasn’t had to lay off one single public employee.  These are tough times but California is hopefully going to start recovering soon,” Councilman Putnam said.

City Council is still working out negotiations with the Police Officers’ Association.