http://pleasantonweekly.com/print/story/print/2011/05/20/city-employees-union-agrees-to-retirement-plan-contributions-for-first-time


Pleasanton Weekly

News - May 20, 2011

City employees union agrees to retirement plan contributions for first time

Savings will top $1 million when fully implemented next year

by Jeb Bing

Pleasanton City Manager Nelson Fialho announced Tuesday night that the city and its Pleasanton City Employees Association -- the union that represents 227 city workers -- have agreed to a new two-year contract that freezes wages while also having employees contribute to their retirement benefits for the first time.

Starting July 1, all employees represented by the PCEA will begin contributing 2% of their pay toward their retirement plan, which is handled by the state's CalPERS retirement system. Six months later, on Dec. 1, that contribution will rise to 3%, and then to 4% on July 1, 2012.

Up to now, the city has paid 100% of its employee contributions to their retirement plan.

Fialho said the move will result in a $1.1 million savings in the city's budget through March 31, 2013.

At the same time, the city and the PCEA agreed to implement a two-tier retirement program that will follow the pre-2001 retirement program in place for city employees. That move will reduce the city's unfunded liabilities by about $3.5 million for this employee group, Fialho said.

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