City employees union agrees to retirement plan contributions for first time
Savings will top $1 million when fully implemented next year
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.