California local government pension changes (as of July 4, 2011)

8/6/2019 California local government pension changes (as of July 4, 2011)

1/72

California Local Government ActivitiesPension Public Policy and Proposed Changes

AESB-Where noted Contract Amendment Complete or Contract Amendment PendingAll others based on recent media reports

Highlighted items have been updated since 7/4/11

Entity Concept/PriorBenefit

New Formula/Policy Voter Approval? Notes/Status

Alameda (City) City Council beganworking on a planto cover unfundedpensions costs onJune 24.

Safety: 2% @ 50 or 3 % @55;Misc. 2.62% @ 62 (Tier 1)2.43% @ 65 (Tier 2)(CSAC as of 2/11)

AlbanyMunicipalServices JPA

Golden Handshake Contract amendmentcompleted;

Alpine Safety: 3% @ 50Misc.: 2% @ 55(CSAC as of 2/11)

AmericanCanyon CityFire District

Prior formula: 3%at 50

3 % at 55: Must work 30 yrsto be eligible to retire at age55

Contract amendmentcompleted

Auburn Two-tier pension benefitsthat 3 public safety unionsagreed to change for localpolice offices and firefighterswere adopted 4/25/11.Current officers will continueto receive a pension equal to

3% @ 50, while new officersand firefighters will start at2% @ 50 and work up to max2.7%/year. (Auburn Journal,4/27/11)

Contract amendmentpending

1


2/72



Bakersfield Rollback of pensionformulas to 1999levels (2% at 50).Prior formula: 3%at 50

New safety workers hiredafter Jan 2011: 2% at 50benefit and required to pay100% of full contribution tothe plan (currently 9% ofsalary), uses three years finalcompensation. Any changesto benefits under Measure Dmust be voted on the ballot.

Passed onNovember 2,2010(Measure D)

Potential lawsuit to block theimplementation of MeasureD.

Barstow On 6/21/10 the CityCouncil approvedgiving eligibleemployees sixmonths toparticipate inGoldenHandshake-- offerstwo additionalyears of servicecredit (must have 5years and be atleast 50 years of

age)


Bell The council terminated itssupplemental retirement planthat was paid entirely by Belltax funds that had beenillegally raised by the city.(Los Angeles Times, 4/22/11)

8/12/2011 2


3/72



Berkeley City manager maderecommendation toamend employeecontracts toaccount forincreased PERScosts: reducesalaries, requirelarger employeecontribution rates,raise retirementage and cap theamount of finalsalary used incalculating benefits

Berkeley city employee unionhas agreed to relinquish cost-of-living increases for thenext four years andcontribute to their pension.Employees will give up cost-of-living increases through2015 and start contributingto their pensions. Existingunion employees in thegroup will start paying 2 to 3percent of their salary towardtheir retirement plan,depending on contributionrates set by the state. Thecity will pay about 27 percentof an employee's salary whileinvestment gains in thestate-run plan pay the rest.New employees hired after2012 will pay up to 5 percentof their salaries towardretirement. In addition, theamount new employees

receive each month inretirement will be lowered to2 percent of their salaries,compared with 2.7 percentthat current employeesreceive after retirementContra Costa Times, 6/20/11-Factiva

The City will startrenegotiations with the CityPolice Department in January2011and with all other Citydepartments in January2012.

8/12/2011 3


4/72



Bishop Current EmployeeFormulas:3% at 50 (safety)2% at 55 (misc)

New Employee Formulas:3% @ 55 (safety)2% @ 60 (misc)


Brea Current fire andpolice safetyformula: 3 @50

City of Brea council enactedlowest police and firepensions in Orange County.New hires for police and firewill receive: 2% @50 uponhire.(OC Register 5/18/11)

City council approved byvote of 5-0 when met5/17/11 at City Hall.

Brentwood Current EmployeeFormula: 2.7% @55 w 1 yr final

comp

New Employee Formula:2% @ 60 with 3 year finalcompensation period and a

2% COLA.


Butte Safety: 3% @ 50 (Deputies),2% @ 50 (Corrections,Probation);Misc.: 2% @ 55(CSAC as of 2/11)

Calaveras Safety: 3% @ 50;Misc.: 2% @ 55(CSAC as of 2/11)

Campbell 2% @ 60 for new hires, misc

Removal of post-retirementsurvival allowance


CambriaCommunityHealthcareDistrict

Prior Formulas:3% @ 50 (safety)

New Hire Formulas:3% at 55 (safety)

Contract AmendmentCompleted

8/12/2011 4


5/72



Carlsbad Adopted newcontract withFirefighters and

new police officers.


Ballot Measure Galso now requires apublic vote forfuture pensionincreases for safetypersonnel.

Increase firefighter share ofcontribution.Reduced benefits for all new

hires beginning Octobernew formula is 2% at 50

City employees to fully fundtheir own pensions byDecember 2012. City workersnow contribute 1% and thecity contributes 7 %. ThisDecember when EEs are setto contribute an additional3.5% toward their pensions.That will bring their totalcontribution to 4.5% andleaves the city with a 3.5%obligation per employee for2012. By the end of 2012,city workers will fund 100%of their own pensions.

The agreement will alsolaunch a two-tieredretirement plan that will

lower the eventual pensionpayout for employees whojoin the city after Nov. 27,2011. If new workers retireafter age 60, the city willaverage their salaries fromtheir last three years. Twopercent of that numbermultiplied by the number ofyears the worker stayed withthe city will equal what

Passed onNovember 2,2010

(Proposition G)


8/12/2011 5


6/72



Carmel by theSea

Prior formula: 2%@ 55

New Employee Formula:2% at 60

Contract amendmentcancelled

Central BasinMunicipalWater District




Central FireProtectionDistrict of SantaCruz County

3% @ 55 and 3-years finalcompensation for new hires(safety)

Three years finalcompensation (miscemployees)


Cerritos 2% @ 60 for new hires, misc Contract amendment

pendingChino City Councilreviewing proposalto change pensionformula:

The council couldapprove reducedbenefits for all newhires, to receive 2.7@ 55 to 2% @ 55

(misc.), and 3% @50 to 3% @ 55(safety).(Inland Valley DailyBulletin, 3/28/11).

Police officers, electedofficials and unrepresentedmanagement employees willnow pay half the cost ofmember contributions forpension benefits. Citypreviously paid for fullcontributions. New EEs hiredon or after start of 2011-2012 will pay for entire

contribution.

Retirement pension formulasbetween the city and PERSwere also amended to 2$ at55 (misc.) and 3% at 55(safety).Inland Valley Daily Bulletin,6/27/11

8/12/2011 6


7/72



Chula Vista Two unions haveagreed to pay thefull 8 percent to

CalPERS and to asecond tier for newemployees. City isasking other unionsto do the same.

Police will begin contributing3% immediately, increasingcost to full 9% (previously

8%) to CalPERS by July 2012.New hires will pay 9% at startof work.

Citrus Heights Citrus Heights hasgiven preliminaryapproval tochanges inemployee pensionprograms that willtransfer costs fromthe city to EEs by2016. EEassociations haveagreed to a 2 tiersystem

If adopted by Council,pension formula for newhires after 8/14/10, will be 2@55, miscellaneous based on3yr final comp and 3 @55-safety based on 3yr finalcomp. All new hires will payfull EE share 8%-miscellaneous, 9%-safety


Claremont Prior Formula: 3%at 50

New formula for new hireswill be 2% at 55

Also, a new report from the

Claremont EconomicSustainability Commissionrecommends that employeesbegin paying full share ofemployee contributions toretirement plan.

Contract amendmentcancelled

8/12/2011 7


8/72



CoachellaValley WaterDistrict

Asking EEs to contribute 2%of salary towards pension(district covered costs

before).Desert Sun, 6/20/11) Calpers

CoastsideCounty WaterDistrict




Colton Firefighters' take-home paywill decrease by 9 % as theybegin paying their share ofretirement benefits under apackage of concessions theCity Council approved 3/15.

They also gave up a 6.5 %raise they had earlierdeferred, delayed by 5yrs.the age at which newemployees will receive fullretirement benefits (SanBernardino County Sun,3/16/11)

If the city approves anagreement by July 2012 thatdoes not require anemployee group to pay itsown contribution to the stateretirement system,CalPERS, Colton will againpay that 9% contribution forits firefighters (SanBernardino County Sun,3/16/11).

Colusa Safety: 3% @ 50;

Misc.: 3% @ 60(CSAC as of 2/11)ConjeoRecreation &Park District


New formula for new hireswill be 2% at 60


Concord Went to a two tiersystem for newemployees


8/12/2011 8


9/72



Contra CostaCounty (Non-CalPERS)

Contract for newfire chief restrictspension boosting

pay and salary.

City Managerproposal: two tierprogrammovefrom 3% at 50 forpolice and fire

Safety: 3% @ 50;Misc.: 2% @ 55(CSAC as of 2/11)

New formula for new hireswill be 2% at 50 escalating to2.7% at 55 or older (safetyemployees)

Other employees the newformula would be 2% at 60

Contra CostaCounty

On Tues. (3/15), CountyAdministrator David Twa willpropose ending straddling ofvacation sell-back startingApril 1 (helps countymanagers spike theirpensions by as much as 9%and drives up salary andbenefit expenses). Othervacation sell-back would beeliminated by June 30, 2012 -only affects 317 non-unionmanagers, county must then

negotiate the change with2,000 other eligibleemployees. (Contra CostaTimes, 3/14/11).

Pending (3/14/11)

8/12/2011 9


10/72



Costa Mesa Employee CostSharing

Miscellaneous sharing thecost of 2%@55

Police sharing the cost of 3%@ 50

Fire sharing the cost of3%@50

Contract amendmentcompleted;

Cotati City Hall employees agreedto continue 2-day per monthfurloughs for 18 months.

In 2012, existing employeeswill pay more to CalPERS and10 percent of medicalpremiums. New employeeswill pay full employee shareto CalPERS, about 8 percent.

Covina Different level of benefits 3%@ 55 for new hires, safety


CucamongaValley WaterDistrict

2% @ 60 and 3-year finalcompensation for new hires,misc


Culver City As of July 2011, EEs will

contribute 5% into PERS (was2%).Front Page Online, 6/23, C

Del Norte Safety: 2% @ 50;Misc.: 2% @ 55(CSAC as of 2/11)

EasternMunicipalWater District

Different level of benefits 2%at 55 for new hires


8/12/2011 10


11/72



El Cajon Reduced benefitsfor new policemanagement hires

Requires non-safety andpolice managementpersonnel to begin paying

contributions in July 2010Increases retirement agefrom 50 to 55.

3% @ 55 and 3-years finalcompensation for new hires(contract amendmentpending)


El Segundo Orderednegotiations withunion to eitherinclude a 5% salaryreduction or 5%increase inemployeecontribution toretirement. Affectsapproximately 300positions

Pending negotiation

El Dorado Safety: 3% @ 50; 2% @ 50

(negotiation in progress foradditional tier)Misc.: 2% @ 55; 2% @ 60(negotiation in progress foradditional tier)(CSAC as of 2/11)

El DoradoIrrigationDistrict

Golden Handshake Went from 2.75 @ 55 to 2%@ 55


8/12/2011 11


12/72


13/72



Folsom Local 39 UnionEmployees(includes: IT

specialists, groundsand buildingmaintenanceworkers, buildinginspectors, utilityworkers,administrativeassistants,librarians andrefuse collectors):7% (starting July2011) and 8%(starting July 2012).

New Formula: thosewho work 20 yearsand retire at age 55will be eligible for40% of theirhighest income(amt. from avg. of3 consecutivehighest earningyears).

Current Employees:work 20 years andretire at age 50eligible for 54% ofsingle highestyears salary

Council approved the newcontract with Local 522 firecaptains, engineers,firefighters andparamedics that will pay 5percent of their salarytoward the employeeportion of PERS retirementbeginning July 1. Thatamount will be increasedto 9 percent next January.

SacBee, 6/29/11

New agreement ratified byLocal 39 Union in mid-February 2011. Takes effect

Tuesday, March 1 June 30,2013.

8/12/2011 13


14/72



Fountain Valley Created a second tier for newhires

2% @ 60 for new hires, misc(contract amendmentpending)


Fowler Approved anincentive foremployees 50 andolder with five yrsof serviceGoldenhandshake givingtwo additionalyears of servicecredit


Fremont City manager haspresented proposalto lower retirementbenefits for newemployees.

Prior formula:Safety: 3% at 50Misc: 2% at 55Single year finalcomp

New Proposal:Safety: 2% at 50 or 2.7% at55Misc: 2% at 60 or 2.48% at63With three years final compIntroduced to City Council onJuly 7, no action taken at thispoint.

8/12/2011 14


15/72



Fresno County County Board ofSupervisorsdiscussed possible

pension changes new employeesmight be offered aretirement-savingsplan, similar to a401k, as well as areduced pension(The Fresno Bee,3/8/11)

Safety: Tier 1 2.5% @ 50,Tier 2 2.2902% @ 50Misc.: Tier 1 2.5% @ 55,

Tier 2 2% @ 55, Tier 3 2%@ 55(CSAC as of 2/11)

Fullerton Straight 5 % payreduction forfirefighters

Galt EEs who are not in the policeassociation will contribute2% of their salary to thePERS. Police alreadycontribute 9%.Sac Bee, 6/24/11, C

Gilroy 2% @ 553-years final compensation2% @ 50 for new hires,

safety


8/12/2011 15


16/72



Glendale Increaseemployeescontribution;

3% @ 50 (Safety)2% @ 50 (Misc.)

Employees hired after 1/1/11:

Misc: 2% @ 55 (3 yr. final

comp)Safety 3% @ 55 (1 year finalcomp)

City managers anddepartment executives haveagreed to pay 11% of eachpaycheck to PERS.Glendale News-Press,6/28/11


Glendora Employees to pay100% ofcontribution

This offer was made as partof labor negotiations, and itdoes not appear that it hasbeen agreed to at this point.

Gridley Three year finalcompensation

Contract amendmentcompleted; 2/20/11

Healdsburg Two Tier System fornew police officerhires.

*Police Chief setting uppension committee withCPCA to study

8/12/2011 16


17/72



Hermosa Beach Approved anincentive foremployees 50 and

older with five yrsof service;

City Council topotentially createsecond tier for newemployees in policeand firemovingfrom 3% at 50 to2% at 50

Approved two-tier pensionsystem. Formula for newhires: 2% @ 50 (police), 3%

@ 50 (fire), 2% @ 60 (misc.).Current EEs formula staysthe same.(Hermosa Beach News,4/27/11)

Unions have filed suitagainst Council re: two tiersystem

http://www.tbrnews.com/articles/2011/04/28/hermosa_beach_news/news02.txt

Humboldt Safety: 3% @ 50;Misc.: 2.7% @ 55(CSAC as of 2/11)

HuntingtonBeach

Firefighters andpolice increasedcontributions by 2percent.

Dept. heads opted to paymore into pensions. Currentlycontribute 4.25%. Rate willincrease to 5.5% (Oct. 1) andagain to 6.75 (Oct. 2012).Orange County Register,6/21/11, C

Imperial Beach Requires non-safetyto now contributeto pension fund(previously zerocontribution)

Indio Golden handshakeapproved

8/12/2011 17
http://www.tbrnews.com/articleshttp://www.tbrnews.com/articleshttp://www.tbrnews.com/articleshttp://www.tbrnews.com/articles


18/72



Inyo Safety: 3% @ 50 (Proposed3% @ 55 in progress)Misc.: 2% @ 55 (Proposed 2%

@ 60 in progress)(CSAC as of 2/11)

Ione 2% @ 60 for new hires, misc

New fire category


Irvine RanchWater District

2% @ 55 2.5% @ 55 and IRWD EEsbegan to contribute 1% ofthe EE contribution to offsetsome of the increasedexpense. IRWD also addedmilitary service creditoptions, which allows EEs topurchase up to 4 years ofmilitary or merchant marineservice prior to employmentat the district. EE isresponsible for EE and ERcontribution.(Orange County Register,4/11/11)

IRWD implemented plan inJune 2008.

Irwindale 3 year final compensationapplies to misc and policembrs hired after effectivedate of this amendment


Kern Safety: 3% @ 50Misc.: 1.65% @ 65(CSAC as of 2/11)

8/12/2011 18


19/72



Kern County(non-CalPERS)

Supervisor Rubioasking 300 Countyemployees to

voluntarily paytoward health andretirement-- wouldlike to make thecontributionsmandatory.

Board ofsupervisorsexpected to imposea contract on SEIU

representedemployees - SEIUmembers voted infavor of allowingthe unionsbargaining team toauthorize a strike.

County proposing 2% 50instead of 3% @ 50 (Safety,Sheriffs, and Fire new hires)

Bakersfield Californian,4/1/11

On April 1, county proposednew deal would phase theincreased costs to membersover 5 years instead of 3, aspreviously proposed. Unionmembers are asked to beginpaying 20% of premiums intohealth care in the 1st year,

then in each of the following4 years, EEs would pay anadditional 25% of acontribution to theirretirement that is based onthe age of the EE when he orshe entered county service.(McClatchy-Tribue RegionalNews, 4/13/11)

All unions have not approvedlower retirement formulasfor newly hired EEs are being

asked to do so (4/18/11)

Kings Safety: 3% @ 55; 2% @ 50(new hires)Misc.: 2% @ 55; 2% @ 60(new hires)(CSAC as of 2/11)

Laguna Beach 3% @ 50 (safety)Orange County Register,4/11/11

Lake Safety: 2% @ 50;Misc. 2% @ 55(CSAC as of 2/11)

8/12/2011 19


20/72



La Mesa Employees pick uptheir pensioncontribution from

city

Moving from a 3%formula to a 2%formula proposed

La Verne Firefightersapproved contractin which they willpay employeecontribution. Newfirefighter hires will

pay the fullemployee share.

Lassen 2% @60 for new employees,misc

3% @55 for new employees,safety


Lathrop 2% @ 60 for new hires, misc Contract amendmentpending

Lemon Grove Increase infirefightercontributions

Lincoln 2% @60 for new employeesor leaving the CalPERSsystem with 3-year finalcompensation for new hires,misc (contract amendmentpending)


8/12/2011 20


21/72



Lompoc 2.7% @ 553% @ 50 (Fire &Police)

Discussing possible formulachanges: measures involvedcreating a two-tier system

that would introduce a lowerlevel of benefits such asoffering only 2% @ 55 formost employees for all newhires.(Santa Maria Times, 3/30/11

8/12/2011 21


22/72



Los Angeles(City) (non-CalPERS)

Ballot initiative onnew police and firelower pension

benefits andrequire higheremployeecontribution

Safety: 2% @ 50(CSAC as of 2/11)

Members of six city unionsare voting now on aproposed contractamendment that would raisetheir retirement contributionsinstead of imposingfurloughs.

If union members reject thedeal, the budget calls forworkers paid out of the

general fund to spend 26 to36 days on furlough. Thattranslates into an averagepay cut of 10% more thantwice the cost of the higherpension fund contributions.Voting on 4/26/11(LA Times,4/25/11)

(Coalition of LACity Unions)Civilian workers

will invest 11% ofsalary towardoverallretirementbenefits(pensions andretiree healthcare combined currently pays6% of salarytoward

pensions),effective July 1,2011.Associated Press,3/24/11

March 8, 2011BallotMeasure Gpassed: Votersagreed to reducepensions andincreaseemployee health-plancontributions fornew hires (fire,police, andharbor) (LA DailyNews, 3/9/11)

Measure G lowers thepensions for new police andfirefighters if they retireearly after 20 years. Newhires also would contribute2% toward retiree healthcare (from 0%) for currentpolice and firefighters(Calpensions.com 3/11/11)

8/12/2011 22
http://lat.ms/fjb1RAhttp://lat.ms/fjb1RAhttp://lat.ms/fjb1RAhttp://lat.ms/fjb1RA


23/72



Los Altos Creation of a twotier system throughcontract

negotiations with Teamsters. Currentformula: 2.7% at 55

Formula for new employees:2% at 60. Teamstermembers will also being

paying 1% of contribution in2011 and another 1% in2012 (previously paidnothing)

Increase in CalPERS rate: 5%(police), 3& (misc.)Los Altos Town Crier,6/23/11, C)

Long Beach Studying increasein employee

contributions

Changed formulafor Peace Officers(POA members).Prior Formula: 3%at 50

Currently:employeesresponsible forabout 2% ofpension costs, 3%@ 50 for safety and2.5% at 55 for misc

2% @ 60 for new employeeswith 3-year final

compensation

New Employee Formula: 8%

Continues to study increasedemployer contribution

Los Banos Police employees toincreased percentof their employeeshare paid

Madera Safety: 3% @ 55;

8/12/2011 23


24/72



Misc.: 2.7% @ 55(CSAC as of 2/11)

Marin Safety: 3% @ 50;

Misc.: 2% @ 55 (Tiers 1 and2); 2% @ 55 (Tier 3)CSAC as of 2/11)

Mariposa Safety: 3% @ 50;Misc.: 207% @ 55(CSAC as of 2/11)

Martinez 3% @ 50 (police officers andfirefighters) allows officersto retire at 50 and receive100% or more of theirhighest one-years earning,

plus cost of livingadjustments for life.(Silicon ValleyMercuryNews.com 3/23/11)

Maywood Laying off all cityemployees,including police andcontracting withsurrounding areas(City of Bell and LACounty SheriffDept.)City previously paidthe employeescontribution intoCalPERS retirementplan.(approximately 100employees laid off).

Laying off all city employees,including police andcontracting with surroundingareas (City of Bell and LACounty Sheriff Dept.)

Effective July 1, 2010

8/12/2011 24


25/72



MendocinoCounty (Non-CalPERS)

Multiple grand juryrecommendationsabout the MCERA--

including creationof a two-tier planfor employees; nodefined benefit fornew employees andthe reduction ofpensions for allemployees.

Safety: 3% @ 55; 2% @ 50(Probation);Misc.: 2% @ 57

(CSAC as of 2/11)

Misc.: have reached MOUagreement to an additionaltier with no specifics (CSAC

as of 2/11)

Menlo Park Reduce pensionsfor new non-policeemployees and

require benefitchanges to beapproved only withvoter approval.Prior formula: 2.7%at 55

New formula: 2% at 60

Increase in retirement age

for new police sergeantsfrom 50 to 55.(MercuryNews.com 5/6/11)

New hires union agreed toprovide pension benefits of3% @55 based on average ofhighest 3yr salary(Almanac5/11/11)

Passed onNovember 2,2010

(Measure L)

City Council is expected toconsider the memo ofunderstanding with the

Police sergeants AssociationMay 24

8/12/2011 25


26/72



Merced City said in a news releaseits entering into agreementswith the Merced Fire Fighters

Local 1479 Union and theMerced Association of CityEmployees. City said itsmoving toward a two-tieredretirement systems, whichwould change benefit plansfor new hires. Second tierwould require all newemployees to pay fullamount of employee share toCalPERS. Change wont begin

until all employee unitsagree. There are 3 contractsup for renewel in 2012(Merced Police OfficersAssociation, MercedAssociation of PoliceSergeants and Merced CityEmployees Union.Merced Sun-Star, 4/4/11

Starting in June 2011,employees in the threegroups with contracts before

the council will begin payinga larger contribution toCalPERS. That share willincrease to more than 3% inDecember for all units.

In June, fire employees willstart contributing 1%. InDecember, that figure willjump to a total of 3.5% ofcompensation. New hires will

have to pay 4.5% ofcompensation.

Merced Assc. Of CityEmployees union will pay thesame and fire union EEs.New hires will pay 6%.Unrep. EEs, made up ofpersonnel, IT, Sups., Mgrs.,and Dept. Heads will pay1.5% in June. In Dec., they

will pay 3.5%, new hires willpay 8% (Misc., nonswornpersonnel) and 9% (Safety).Merced Sun-Star 4/5/11

MidwaySanitationDistrict


New formula: 2% at 55 Contract amendmentcompleted

Mill Valley 2% @ 55 and 3-year finalcomp, misc


8/12/2011 26


27/72



Mission Viejo Prior formula: 2.5@ 55 existing EEsmisc.

Create 2 tier system for FY11-12. New hires receive 2%@ 60 and 3 year final comp,

misc. Lower PERScontribution to 7 from 8.Existing EE give 3%-City 5%.Future hires 4.25%-City2.75%. FY 14-15, all EEspaying full share-0 fromCity(OC Register 5/17/11)

City council voted 5-0 toapprove pension reform.

Modesto The City iscurrently in labornegotiations withemployee unions in

an effort to reducethe citysretirementliabilities.

Proposals include thecreation of a two tier system(lower benefit for newemployers), minimum

retirement age, andincreased employeecontribution

Still subject to bargaining.

Monrovia Petition toeliminate propertytax (residentgroup). Trying toabolish tax to cutoff funding ofpensions of cityemployees.

Petition beingcirculated toqualify forNovember Ballot

8/12/2011 27


28/72



Montclair Set up a two tierpension system fornon-safety

employees. Priorformula 3% of pay

Approved 6%contribution forFirefighters andmembers of SBEmployees Assn.

Public safety and other cityEEs will be asked topermanently contribute to

their pensions. EEs havebeen paying the past twoyears but will be asked topay 6% for the next fiscalyear and permanentlythereafter.Daily Bulletin, 6/22/11, C

Monterey Safety: 3% @ 50;Misc.: 2% @ 55(CSAC as of 2/11)

City Council proposing fornew 11-12 FY new safety hirebenefit formula of 2% @ 50.(MontereyHerald 5/18/11)

Presented at Monterey CityCouncil meeting Tuesday,May 17, 2011.Expectedadoption June 7,2011

MontereyCounty

ManagementEmployees agreedto roll back pensionbenefits

Covers about 50 employees

Monterey Park Approved anincentive foremployees 50 andolder with five yrsof serviceGoldenhandshake givingtwo additionalyears of servicecredit


8/12/2011 28


29/72



Morro Bay 3% @ 55 and 3-year finalcompensation for new hires,safety


Napa Safety: 3% @ 50 (3% @ 55for additional tear innegotiation)Misc.: 2.5% @ 55(CSAC as of 2/11)Misc. 2.7 @ 55(Napa ValleyRegister, 5/1/11)

Napa SanitationDistrict

Prior formula: 2.7percent @ 55

New formula: 2% at 55 Contract amendmentcompleted

National City Reduced benefitsfor new police

officers andrequires existingpolice employeesto contribute topensions.

Safety: 3% @ 50Misc: 3% @ 60

Safety: 3% at 55Misc: 2% at 60


8/12/2011 29


30/72



Nevada City Current EmployeeFormulas:3% @ 50 (safety)

2.5% @ 55 (misc)

Safety: 3% @ 50 ; 3% @ 55(negotiated in 10-11 buteffective July 1, 2011 for new

hires)Misc. 2.7% @ 55 (2% @ 60negotiated in 10/11 buteffective July 1, 2011 for newhires)(CSAC as of 2/11)

New Employee Formulas:2 % @ 60 (misc)2 % @ 55 (safety)


Newman New Employees Formula:

2% @ 55

3% @ 55 (safety)

Contract amendment

completed

Newport Beach New contract withfirefighters andlifeguards.

Redirect pay raise to paytoward employee pensioncost.Lifeguards to pay 3.5 %employee share

3% @ 50 (safety) OrangeCounty Register, 4/11/11)

Lifeguards agreed toincrease their pensioncontribution to 9% from3.5%.Orange County Register,6/29/11

Budget eased by alsoallowing some employees toretire early

8/12/2011 30


31/72



Norco Motion to amend &implement 2007contract agreement

increasing FFretirement benefits

Firefighters who retire at age50 would receive 3% @ 50compared to current 2% to

keep pace with surroundingcities.

City council did not passmotion. Did not have enoughsupport and would cost City

several hundred thousanddollars.

North CoastCounty WaterDistrict

2% @ 55 for all new hires Contract amendmentcompleted

North TahoeFire ProtectionDistrict

3% @ 55 to new safety hires

2.7% @ 55 for new misc.employees


Novato Ad Hoc pensioncommittee

recommendedemployeescontribute more totheir retirementpackage; police 9percent; all others7 percent

Oakland 8/10/10agreementbetween CityCouncil and PeaceOfficers Associationagreed to haveemployees payhigher retirementcontribution ratesand a higherretirement age fornew employees

2011- 4% contribution2012- 7 % contribution2013- 9% contribution

New employee formula: 3%at 55

Some elementsof the dealdepend on aparcel tax whichis on theNovember ballot.

8/12/2011 31


32/72



Oakley Two-tier systemwith lower formula

Old formula: 2.5%at 55

New formula: 2% at 60 Changed approved by theCity Council on August 10.

8/12/2011 32


33/72



Oceanside Firefighters to pay4% of salarytowards pensions.

Oceansides managementlevel police officers signed a2-year contract that calls for

them to pay 9% by next year,but also give them raises.New contract calls for theofficers to immediately beginpaying 4.5% of their pensioncosts. They would pay anadditional 4.5% starting Jan.2012.Those contributions would beoffset by a series of payraises; the officers would

receive an immediate 2%raise, followed by another 2%raise in Jan. 2012 and a 1%raise in 2013.(SD Union-Tribune, 3/22/11)

City workers(except safety)agree to concessions thatwould increase their pensioncost and create 2 tierretirement for new workers

with a formula of 2% @60with 1yr final comp-miscellaneous(North CountyTimes 6/16/11)

The City Council voted 4-1last week to approve thecontract with one captain

and seven lieutenants whomake up the OceansidePolice ManagementAssociation. (3/22/11)

8/12/2011 33


34/72



Orange Safety: 3% @ 50; 3% @ 55;Misc.: 2.7% @ 55; 1.62% @65

(CSAC as of 2/11)

Orange County(non CalPERS)

Approved threeyear contract withdeputy sheriffsunion requiringdeputies tocontribute up to 5percent towardretirement and

increasesretirement age fornew hires.Created reformsgoverning retiredannuitant use

New deputies would be ableto retire at 55 instead of 50,contribute 6.6 percent ofpay.

Fight to overturn 3% @ 50pension plan for sheriffsdeputies came to halt CA

Supreme Court refused tohear its appeal (The OrangeCounty Register, 4/13/11)

IRS is expected to make aformal decision soon onrequests to allow certain EEsdefined benefit plan to moveto a newer hybrid plan.(Pensions & Investments,4/18/11).

8/12/2011 34


35/72



Pacific Grove Ballot Initiative tocap the amount thecity can pay into a

retirement system

Caps the amount the city canpay towards an employeesretirement at 10%

Enacted by CityCouncil in July,however,

remained onballot due tolawsuit filedagainst councilaction by PeaceOfficersAssociation

Passed on November 2,2010(Measure R)

Palm Desert New hires (after September1, 2011):2% (was 2.7% before).Desert Sun, 6/20/11, C

Contract pending.

Palm Springs Prior Safety: 3% @50

New Safety Hires: 3% @55

Also limiting the Citycontribution to healthbenefits to 5%

Palmdale Approved anincentive foremployees 50 andolder with five yrs

of serviceGoldenhandshake givingtwo additionalyears of servicecredit

2% @ 60 for new hires, misc Contract amendmentcompleted

Pomona Police members: Second Tier3% @ 55


8/12/2011 35


36/72



Palo Alto Current EmployeeFormula: 2.7% at55 (misc)

New Employee Formula:2 % at 60 (misc)


Padre DamMunicipalWater District

Current EmployeeFormula: 3% at 60

New Employee Formula:2.5% @ 55


Paradise 3% @ 55 and 3-years finalcompensation for all newhires, safety

2% @ 60 and 3-years finalcompensation for all newhires, misc


Pinole Golden Handshake Contract Amendment

Completed 2/16/11

8/12/2011 36


37/72



Pittsburg Teamster workershave to contribute7 percent of their

pay, caps theemployercontribution towardhealth carepremiums, andends citycontributions tohealth insurancefor retirees;increasesincentives for

workers who dontuse citys healthinsurance; two tiersystem with lowerbenefit rates fornew employees

8/12/2011 37


38/72



Placer County Created a two-tierpension system

2% @ 55 and 3-year final comp forall new hires, misc(contractamendmentpending)

3% at 55 and 3-year final comp forall new hires, safety(contract

amendmentpending)

Safety: 3% @ 50; (3% @ 55new hires after 3/12)Misc.: 2.5% @ 55 (2% @ 55

(new hires after 3/12/11)(CSAC as of 2/11)

2.5% @ 55 for currentemployees; 2% @ 55 for newhires after 3/12/11 (SacBee,3/29/11)


8/12/2011 38


39/72



Pleasanton Proposed dealincludes no wageadjustments for the

duration of contractand asksemployees tocontribute 2% toCalPERS. Citymanager says goalis to have all unionspaying 8 to 9percent to theirpension by 2013.

Tentative contractagreement reachedfor pensioncontribution andtwo-tier for newhires effective July2013.

Two tier retirement systembeginning March 2013 forPleasanton City Employees

Assoc. members. Newformula change to 1.426%@50.(Oakland Tribune5/18/11)

Pension contributionapproved by City Councilbeginning July 2012w/employees to pay 4% by2013. New two tierretirement system for new

hires formula of 1.426%@50.(Contra Costa Times5/21/11)

Approved by unanimousvote of City Council.

8/12/2011 39


40/72



Pleasant Hill Pleasant Hill paysthe entire 7 % EEcontribution to

CalPERS.

City Council imposed a 1-year contract onmanagement EEs that raises

health care premiums andrequires them to pay intotheir retirement fund.Beginning July 2011, workerswill pay 5% of thecontribution, city will pay 2%.New hires will be eligible for3% @ 55 (police), 2% @ 60for others, based on avg. of 3years of salary, instead of 1.Current EEs eligible for 3%

@ 50 and 2% @ 55.(Silicon ValleyMercuryNews.com, 4/8/11)

Plumas Safety: 3% @ 55;Misc.: 2% @ 55(CSAC as of 2/11)

Poway Paid off pensionliability early

RanchCucamonga

Currently 2.5 @55and 1yr final comp

New employees will receiveeffective 7/4/11, 2% @55w/3yr final comp(Daily

Bulletin 6/16/11)

City Council adopted

Rancho SantaMargarita

Currently 2.5% @55 andemployer paysemployee share toCalPERS

New Employee Formula:2% @ 60 and three yearsfinal compensation.Employees will pay 7% ofsalary to CalPERS

8/12/2011 40


41/72



Rancho SimRec and ParkDistrict

Current EmployeeFormula:2 % @ 55 and one

year finalcompensation

New Employee Formula:2 % @ 60 and three yearsfinal compensation


Red Bluff Requires mid-management,management andexecutive staff tobegin payingcontributions up to7% of salary

Redding Proposals would imposeemployees pay their pension

contributions and requireworkers hired after a certainperiod to pay the full cost ofhealth insurance inretirement.

City currently covers the 7%EE contribution for rank andfile Redding Electric Utilityworkers and the 9% forpolice.

Passed onNovember 2,

2010(Measure A andMeasure B)

8/12/2011 41


42/72


43/72



RiversideCounty

Implemented earlyretirement programfor 1,500

Riverside County Supervisorsare proposing new plan 2%@ 60 (Misc.) and 2% @ 55

(Sheriff and Safety) from 3%@ 60 and 3% @ 50 currently,respectively; pensions wouldbe based on the average ofthe last 3 years (from EEslast year salary currently).Additionally, supervisor areproposing that the countywould no long pay for anemployees share of pensioncontributions, employees

would contribute their sharefor the life of theiremployment (currently,general employees pay 8%for first 5 years ofemployment, then countypicks up the cost after that.Similarly, public safetyemployees play 9% for first 3years).Riverside Press-Enterprise,

4/4/11)

Both initiativespassed onNovember 2,

2010(Measures L andM)

RiversideSheriffsAssociationPresident PatMcNamara saidcontracts withemployee groups

would need to bechange throughnegotiations forthe new pensionformulas to takeplace. Measure L,backed by theassociation, wason the November2010 ballot andwould require

any changes forpublic-safetypensions to gobefore voters forapproval. ButMeasure M,supported bySupervisors, givethe board thepower to make

Measure M made it moredifficult to alter retirementbenefits for county public

safety employees requiring apublic vote for a change insafety retirement benefits.

Measure L, the counterinitiative, protect benefits forofficers killed in the line ofduty but still allow forchanges in the retirementprogram for new employees.

County officials believe theyhave a legal right to reducethe formula for futureworkers, since unions cantnegotiate for employeesthey currently do notrepresent, according to areport before supervisorsMonday (April 4, 2011).

8/12/2011 43


44/72



RiversideCountyRegional Park &

Open SpaceDistrict & FloodControl andWaterConservationDistrict

Proposal approvedby the Board ofSupervisors for

both to end Countyof paying new hiresshare of paymentinto CalPERS. Bothbudgets areindependent ofcounty generalfund. Adoptedbenefit for newhires of 2% @55-safety and 2%

@60-miscellaneous

2% @55 new hires Safety2% @ 60 new hires-Miscellaneous

Proposalapproved byBoard of

Supervisors forboth districts

Public hearing requiredbefore changes enacted

Rosemead 2% @ 55 for new hires Contract amendmentcompleted

8/12/2011 44


45/72



Sacramento(City)

Safety: 3% @ 50 (innegotiations for additionaltier to move to 3% @ 55)

Misc.: 2% @ 55 (Tiers 1/2, innegotiations for additionaltier to move to 1.92% @ 60)(CSAC as of 2/11)

(Misc.) city pays 14% foreach EEs pensioncontribution, which CityCouncil Audit Committeereport recommendsmanagement, fire and police

personnel who have not beencontributing to their pensionsnow start contributing 4%,and management supportEEs whove contributed 2%also now pay 4% - same rateas other EEs.

includes 3 or 5 percent ofwhat would normally be theEEs total 7% contribution,

while the EE pays 4 or 2percent to make up thedifference.

Exempt management, fire,police, and other safety EEshave not paid anycontributions towardretirement pensions. City haspaid both the EE and ER

8/12/2011 45


46/72



SacramentoCounty(*Non-PERS)

Currentnegotiationsongoing

potentially adding a4th tiermovingone current formula2% at 55.5 to 2%at 60 formiscellaneousemployees

Negotiated with SheriffsUnion to temporarily allowhigh-level staff to cash in

vacation time and use towardretirementmeant to gethigh level officials to retireand to prevent layoffs in theSheriffs Dept. Additionally,remaining sheriffs wouldstart paying more into theirretirements and retirementage would for sheriffs wouldraise from 50 to 55

City wants police andfirefighters to contribute totheir pensions. Currently,they do not pay anything outof pocket toward theirretirements.Sacbee.com 4/6/11

SacramentoCountyRegionalTransit

Authority

Golden Handshake

8/12/2011 46


47/72



Salinas Current: 3% @ 50 (Safety) Grand Jury wants to changeto 2% @ 55 and avg. of last 3

years of employment. Citylikes idea of change ofretirement age, but wants tokeep 3%.2% @ 55 (Misc.) Grand Jurywants to change to age 60and add avg. of last 3 yearsof employment. City wants toonly add the salary average.Salinas Californian, 4/5/11

8/12/2011 47


48/72



San BernardinoCounty

Create a two tiersystem for deputies

Safety: 3% @ 50;Misc.:2% @ 55(CSAC as of 2/11)

Starting in July 2011, thecounty will be asked to pay14.7% for most EEs and31.2% for sheriffs deputiesand firefighters. (SanBernardino County Sun,4/16/11)

Firefighters agreed to paymore of their own pension

costs: 7% more of salary.They also consented totaking smaller annual raises limited to 2.5% instead of 5%- and to stop having theirhealth insurance benefitcounty toward their pensions.(The Sun, 4/17/11)

City of SB-New Hires amonggeneral EEs would have to

cover the EE portion of thepension benefit. Also,analysisof adding Charteramendment forbidding citypayment off EEs portion ofpension benefit. Motion hadno support. (The Sun, 5/4)

8/12/2011 48


49/72



San Carlos Voted to contractpark maintenanceout (eliminating 7

positions)

Consideringcontracting ofpolice services tothe San MateoCounty SheriffsDepartmentwouldresult in eliminationof 32 positions

Local peaceofficers union ispetitioning to

have a ballotmeasure thatwould preventthe contractingout of policeservices.

The City is asking unionsrepresenting non-safetypersonnel to agree to

reduced pension for futurehires. This would be a thirdtier since a lower benefit fornew employees was enactedin 2008 for miscellaneousemployees

San Diego Safety: 3% @ 50 (Tier A); 3%

@ 55 (Tier B);Misc.: 3& @ 60 (Tier A); 2.5%@ 62 (Tier B)(CSAC as of 2/11)

8/12/2011 49


50/72



San Diego(City) (Non-CalPERS)

Coalition of civic leaders,taxpayers and business

groups have come toagreement on the details of apension reform ballotmeasure for the June 2012election (known as theComprehensive PensionReform (CPR) initiative.Falcon Valley Group, 4/5/11

Ballot initiative proposed ifapproved by voters, new

police hires would be theonly ones to receive theguaranteed payouts of atraditional pension whileother new hires wouldcontribute to a 401(k) styleplan and take on the risk ofmoney invested. Pensions forcurrent workers wouldremain unchanged. Mostprominent change is to end

traditional pensions for newfirefighters and lifeguardsand give them 401(k) styleplans.(The San Diego Union-Tribute, 4/8/11)

June 2012Election

Measure includes: Replaces a traditional pensionplan with a 401(k)-styleretirement system for all newcity employees except forpolice officers, who wereexempted because of concernsabout recruitment. Freezes base pay for currentcity workers for up to five years unless overridden by a two-thirds City Council majority. Thefreeze would lower projectedpayments to the pensionsystem. Removes special pay, such asemergency medical trainingpay, from counting towardpension calculations goingforward. Aims to save $363 million inthe first five years and $2billion over 30 years, itsproponents say. (We have moredetails on whether that muchwill be saved below). Includes firefighters andlifeguards, the city's otherpublic safety workers, in401(k)s. Ends weeks-long negotiationswithin the city's Republicanranks about the potential fortwo 401(k) ballot measures.The agreement likely gives asignificant boost to the plan'schance of passing, instead oftwo separate initiatives facing a

8/12/2011 50


51/72



San DiegoCounty

Board of Supervisorsunanimously approve a one-time payment of 2% of

thousands of county EEs on4/5/11 (covers workers from6 bargaining groups of theSEIU Local 221). EEs will paylarger share of theirretirement.The San Diego Union-Tribune4/7/11.

Tentative Contract Deputies get payout worth

2% of their salaries in Julyand a 1% raise in 2013.Deputies pay between 2.5percent and 3.5 percentmore of their salary intoretirement over the first 2years of the 3-year contract.In year 3, EEs receive a 3%offset for their first five yearson the job. For others, countycontribution ranges from 6%

to 7% (The San Diego UnionTribune, 4/12/11)

San DiegoUnified SchoolDistrict

Over 1,000employees took agolden handshakein the Summer of2009.

* many have returned towork in some capacitycreating double dippingissues.

8/12/2011 51


52/72



San Francisco(non-CalPERS)

Shift fundingburden toemployees via

ballot measure

Public Defender Jeff Adachisettled on a pension-reformproposal:

Require all city EEs andelected officials to pay 7.5%of salaries to pension fund.Police and firefighters to pay10%, raise retirement age ofEEs hired after 1/1/12 andcap pensionable income fornew EEs at $140K. Planwould eliminate COLA.New EEs as of 1/1/12 will notbe eligible to join citys

existing plan, has separatepension plan. (Bay Citizen,4/19/11)

YES Adachis proposal excludesEEs earning less than $50K,EEs of SF Unified, SF

Community College District,and any EE part of CalPERS.(Bay Citizen, 4/19/11)

8/12/2011 52


53/72


54/72



Members of the police andfirefighters unions are aboutto decide whether to approve

wage and pension dealsstruck between their leadersand Mayor Lee. If approved,deal would result in a 3% payincrease retroactive to July 1and delaying 2% of arequired salary increase untilMarch in exchange for a 3%increase in their pensioncontributions for 2 years.Pension increase would

expire July 1, 2013, whenemployee contributionswould either revert back tothe current 7.5% or bereplaced with a floating rateunder Lees Novemberpension ballot measure.Firefighters are expected tovote July 21 on theagreement, which resemblesthe police pact except that

1% of their required raisewould be delayed.Agreement would also ensurethat contracts are notreopened until July 1, 2015,locking existing provisionsand health benefits.

Sfexaminer.com, 7/6/11

8/12/2011 54


55/72



San Joaquin Safety: 3% @ 50;Misc.: 2% @ 55 (Tiers 1/2)(CSAC as of 2/11)

San Jose (non-PERS) Ballot initiativeremoves limitationsin the City Charterthat define therules for the age atwhich cityemployees canretire and howmuch the city mustpay into theirpension fund, only

worked hired after1/1/2011 would fallinto the new rules

Pending deal with firefightersunion to slash pay andbenefits to help close budgetgap (MercuryNews.com,3/7/11)

SJ Mayor Chuck Reed isdiscussing possible pensionreductions(MercuryNews.com, 3/14/11)

New city audit slams SJsdisability retirement programfor police and firefighters proposing to overhaul thecitys eligibility requirementsfor disability retirement,which would require achange to the citys charterand voter approval(MercuryNews.com, 4/21/11)

Passed onNovember 2,2010(Measure W)

Firefighters union was thefirst to reach a tentativedeal, which the City Councilis expected to approveTuesday 3/8/11), but morethan half of SJs otheremployee unions havealready proposed extendingtemporary pay cuts theyaccepted in June cityofficials are evaluating their

offers (MercuryNews.com,3/7/11)

San Leandro Golden Handshakes

; also adopted 2%at 55 for all newhires

Implemented two-tiered

benefits program (misc.), Asof 2010, new hires get 2% @55 of average salary over thehighest three consecutiveyears. (Previously, existingEEs get 2.5% of highestsalary at 55. (San LeandroPatch, 4/11/11)

Contract amendment

completed

8/12/2011 55


56/72



San LuisObispo, City

Pension workinggroup makingrecommendations

to addressunfunded liabilityincluding workingtoward a two tiersystem andreducing healthbenefits forretirees.

San Mateo Safety: 3% @ 50;Misc.: 2% @ 55 (negotiatedlower tier of 1.725% @ 58

with some bargaining units,continuing negotiations withothers)(CSAC as of 2/11)

San Ramon City and service EEs areasked to contribute 2% of the8% of their pensions.Contra Costa Times, 6/28/11

Pending

Santa Ana 3% @ 50 (safety)Orange County Register,4/11/11

Santa Barbara Safety: 3% @ 50 (Sheriffs);3% @ 55;Misc.: 2% @ 57(CSAC as of 2/11)

8/12/2011 56


57/72



Santa Clara(County)

Supervisors votedto reduce executivebenefits plan

includes higherinsurance co-paysand increasedretirementcontributions.

Safety: 3% @ 50;Misc. 2.5% @ 55(CSAC as of 2/11)

If passed duringsecond readingas expected,

would take effectJuly 2011.

Santa Clarita Current Formula:2.7% @ 55No employeecontribution

2% @ 60 for misc members7% employee contribution


8/12/2011 57


58/72



Santa Cruz(City)

In July the City andpolice managementagreed to creation

of a two tier systemfor new hirespending sign on ofpolice sergeantsand rank and file

Santa Cruz police haveagreed to contribute 20% oftheir salaries toward the cost

of their pensions and moveto a two-tier retirementsystem as part of a two-yearcontract extension that willsave the city $3 millionthrough July 2013.

As part of a two-tierretirement system, newpolice hires 3% @ 55.

Increase salary

contribution to pensionfrom 9 to 20%

Move to a 2-tiersystem that changesretirement calculationsfor new hires.

Increase contributionsto health care costs.

(Santa Cruz Sentinel,4/26/11)

Safety: 3% @ 50 (Sheriffs);2% @ 55Misc.: 2% @ 55 (Willnegotiate for additional tierchange in FY 2011-12(CSAC as of 2/11)

8/12/2011 58


59/72



Santa CruzCounty, CentralFire Protection

District

3-year final compensation formisc and safety mbrsentering mbrship after the

amendment to this contract

3% @ 55 for safety mbrsentering mbrship after theamendment to this contract


Santa Cruz PortDistrict

Prior formula:2% @ 55 (Misc)

New Hire Formula:2% @ 60


8/12/2011 59


60/72


61/72



Seal Beach Last year, Seal Beach PoliceOfficers Assc. And PoliceMgmt. Assc. Agreed to a two-

tier police pension system.Under new agreement, newlyhired officers would get 2%@ 50 when they retire.However, city has notimplemented the 2nd tierretirement formula. (SealBeach Sun, 4/22/11)

Shasta Safety: 2% @ 50(Corrections, Probation), 3%@ 50 (Sheriff, DA); additional

tier - 2% @ 55 (Corrections,Probation), 3% @ 55 (Sheriff,DA)Misc.: 2% @ 55(CSAC 2/11)

Shasta County Supervisors beginpaying 50 percentof their employeecontributions intoCalPERS and thefull employee share

in 2012; employeesin largestbargaining unitoffered to pay theirown contributionsin exchange for acontract extension.

Supervisors will considerrequiring appointeddepartment heads andunrepresented managers topay 100% of the CalPERSmember contribution.

Resolution does not changeER contribution.(Redding.com, 2/28/11)

Pending (Redding.com,2/28/11)

Sierra Safety: 3% @ 55(CSAC as of 2/11)

8/12/2011 61


62/72



Sierra -SacramentoValleyEmergency

2% @ 55 for new hires, misc

2% @ 60 and 3-year finalcomp for new hires, misc


Signal Hill Adopted 2% at 60for new hires

Adopted 3% at 55for safety members(police)


Simi Valley For 268 employees,increasing thecontribution rate.

Increases former contributionrate from zero to 3.97% forcurrent employees and fornew employees the rate

would be 7%Solano Safety: 3% @ 50 (additionaltier 3% @ 55 takes effect on1/16/11);Misc.: 2.7% @ 55 (2% @ 60has been proposed innegotiations)(CSAC as of 2/11)

8/12/2011 62


63/72



Solano County Consideringoffering an earlyretirement packagefor certainemployees

As part of budget,Board ofSupervisors haveapproved pursuinga proposal tocreate a two-tiersystemwherelower pension

formulas wouldapply to newemployees.

Two years of additionalservice credit would beoffered to employees at least50 years or older and whohave at least five years ofservice credit.

3 % @ 55 new safetyemployees (contractamendment pending)


SolanoIrrigationDistrict

Current formula:2.7 @55

New Hire Formula: 2% @ 60 Contract amendmentcompleted

Solana Beach Froze salaries,increasedemployee pensioncontributions (to 8percent) and

reduced retirementbenefits for newworkers.

New benefit formula is 2percent at 60; three yearfinal compensation;employees will pick up theirfull share of employee

contribution over a threeyear period

Sonoma Safety: 3% @ 50;Misc.: 3% @ 60(CSAC as of 2/11)

South LakeTahoe

New Formula for new hires:3% @ 55 (police and fire)


8/12/2011 63


64/72



South OrangeCountyWastewaterAuthority

2% @ 55 for new misc hiresafter the effective date ofthis amendment


South SanFrancisco

Current EmployeeFormula:2.7% @ 55 (oneyear finalcompensation)(misc)

3% @ 50 (one yearfinal compensation)(safety)

New formulas:2% @ 60 (three years finalcompensation)(misc)

3% @ 55 (three years finalcompensation) (safety)


Stanislaus Safety: 3% @ 50; additionaltier 2% @ 50;Misc.: 2% @ 55; additionaltier 2% @ 61(CSAC as of 2/11)

8/12/2011 64


65/72



StanislausCounty (non-CalPERS)

Reduced benefitsfor newly hiredemployees; raisedmin retirement ageto 61, and threeyear finalcompensation.Shifted $21.4million fromnonvested benefitreserves to offset aretirement costincrease for countyand other public

agencies.

Subject to unionnegotiations.Revised its policy on excessearnings to no longer fundsupplemental medicalstipends for retires; it willonly pay the supplementalbenefits when the pensionfund is 90 percent funded forthree years. If pension fundbecomes overfunded, thecounty and other employerswould have to continue topay their normal cost

contributions.

Stanton Wants to amend contractwith PERS. New agreementwould cut contribution from13.5% to 7.7% (approx..). Inaddition, formula wouldchange from current 2% at55 to 2% at 60.Orange County Register,6/27/11

Contract amendmentpending.

Stinson BeachCounty WaterDistrict

Prior formula: 2.7%@ 55

2% @60 for new hires Contract completed

8/12/2011 65


66/72



Sunnyvale City Councilconsidering two tierretirement planwith possibleincrease in out ofpocket costs fornew employees

City Council approved twolabor agreementmodifications for SunnyvaleManagers Assc. AndSunnyvale Public SafetyOfficers Assc. ManagersAssc.: Two-tier system payadditional 3% of EEcontribution to CalPERSstarting next year (4% total).Officers Assc.: agreed toincrease retirement age of allpolice new hires after 2012from 50 to 55, immediately

contribute an additional 1%and an additional 1% starting2012 and another 1% in2013 (3% total).(Sunnyvale Sun, 4/27/11)

Susanville New Employee Formulas:3% at 60 (Misc)3% at 50 (Safety)


Sutter Safety: 3% @ 50, additionaltier 2% @ 50;Misc.: 2.7% @ 55, additional

tier pending(CSAC as of 2/11)

Sutter County Current and newemployees will pay9% into pensionfund, previouslypaid by county.

New Employee Forumula:2% at 50 and three yearsfinal compensation (safety)

8/12/2011 66


67/72



Taft Current Formula: @% @ 55

Starting 1/1/2011Citywants employees to startpaying 7% of contribution toCalPERS

Reduce formula to 2% at 60

City and Unions are currentlyin contract negotiation onthis issue.

Tehama Safety: 3% @ 55Misc.: 2% @ 55(CSAC as of 2/11)

Tehama County Currently theCounty pays allemployeecontribution to thepension system

Employees to pay 3% ofcontribution

General Unit Local 39, whichcomprises of mostly county

EEs, asked EE to make aconcession of paying 3% thisyear and an additional 3%next year (Tri-CountyNewspapers, 3/30/11)

This was done as the last,best and final offer incontract negotiations andimposed on employeegroups, it is subject to

change if a contract issuccessfully negotiated.

Temple City Now requiring employees topay 1% of contribution(previously paid zero)

Thousand Oaks Early retirementincentive for 30,which would save

$3 million insalaries andbenefits annually.

Approved an incentive foremployees 50 and older withfive yrs of serviceGolden

handshake giving twoadditional years of servicecredit


Tracy Different level of benefits for newpeace officers.Current formula:3% at 50

New formula 3 % at 55(safety)

2% @ 55 (misc.) plus threeyears final compensation

Contract amendmentcomplete

8/12/2011 67


68/72



Trinity Safety: 3% @ 50 (employeeswho are hired after 7/109 aresubjected to a tiered vestingfor retiree medical);Misc.: 2.5% @ 55 (employeeswho are hired after 7/1/09are subjected to a tieredvesting for retiree medical)(CSAC as of 2/11)

Tulare Current Formulas2.7% @ 55 (Misc)3% @ 50 (Fire)

New hires formula:2.5 @ 55 (Misc)3% @ 55 (Fire)

Safety: 2% @ 50

Misc.: 2% at 57(CSAC as of 2/11)


Tuolumne Safety: 3% @ 50, additionaltier 2% @ 50;Misc.: 2% @ 55, additionaltier 2% @ 60(CSAC as of 2/11)

8/12/2011 68


69/72


70/72


71/72



Walnut Creek In 2009, employeesagreed to a varietyof givebacks

Included furloughs, cost ofliving wage freezes andpaying 1.75 percent towardCalPERS.

Working on contractnegotiations to haveemployees contribute ahigher percentage toretirement for nonsafety 7%and for safety approximately9%

Walnut ValleyWater District

2% @ 55 for all new misc.hires.


Watsonville Current policeofficers continue tobe eligible to retireat age 50 with 3percent of highestyear salary.

New hires to the City ofWatsonville policedepartment after July 1 mustretire at age 55 with 3percent of highest 3 years ofsalary.(Santa Cruz Sentinel6/3/11)

Going to the City CouncilTuesday, June 7, 2011.

WestlakeVillage

Starting next year, the citys10 active employees will berequired to contribute 5.8%of their pay toward CalPERS

(from 0%).

The city also imposed a newvesting period beforeemployees receive theirlifetime medical benefits.

(Source: Agora, 3/17/11)

City Councilvoted 4-1 toamend itspension package

for employees.

8/12/2011 71


72/72



Willits Contract with thePolice OfficersUnion wouldrequire employeesto resume makingthe 9% contributiontoward retirement.

City Council approved thenew contract for one year.

Winters 2% @ 50 for membersentering membership for thefirst time in the safetyclassification


Woodside FireProtectionDistrict

3% @ 55 is applicable tolocal safety mbrs enteringmembership after the

effective date of thisamendment.


Yolo Safety: 3% @ 50 (Sheriff), 3%@ 55 (other safety);Misc.: 2.5% @ 55(CSAC as of 2/11)

Yountville Created a two-tiersystem for newhires


Yuba Safety: 2% @ 50Misc.: 2% @ 55

(CSAC as of 2/11)

Documents

California local government pension changes (as of July 4, 2011)