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Pension reforms bode well for Pleasanton's future
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on Jun 1, 2013
The Pleasanton City Council is likely to ratify a new three-year agreement Tuesday with the union representing 220 regular city employees that will raise individual pension contributions and reduce floating holiday hours while also granting a modest wage increases over the life of the new contract, the first pay increase these employees have had in three years. Overall, the new agreement conforms to sweeping pension changes that are already in place for unionized police and firefighters and those made last year by Governor Jerry Brown that reformed pension benefits for public employees hired after last Jan. 1. That change raised the retirement ages from 55 to 67 and trims their pension benefit from 2.7% to 2.5%. Additionally, for those employees hired after Jan 1, the city changed retirement medical benefits from two-party coverage to one-party coverage, with an additional sunset at age 65 when the employee becomes eligible for Medicare. These changes move the city closer to long-term pension sustainability as "legacy" employees eligible for benefits under the pre-2013 plan retire from the system.
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posted Friday, May 31, 2013, 12:00 AM