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Recommendation to request City Management to retain an outside actuary to present within 45 days potential cost saving from the following three hypothetical scenarios for non-public safety employees: (1) a new CalPERS 1.5% at 65 tier with an additional defined contribution employer match of up to 2%, (2) a cost sharing arrangement in which city employees share 50% of the annual “normal” pension costs, (3) a cost sharing arrangement in which employees share 50% of the annual total pension costs, including costs incurred from the City’s unfunded liability.
DISCUSSION
As we approach the upcoming budget, the choices we face are clear: if we do not achieve pension reform for the remaining employee groups, we will be forced to make additional painful cuts in vital services that Long Beach residents depend on, such as police, parks, and libraries. While city employees are our organization’s greatest asset and make numerous invaluable contributions to maintaining quality of life for our residents, salaries and benefits for our employees are also our greatest expense, and they must be examined during these difficult financial times. Last month, we heard about potential statewide reforms proposed by Governor Brown that could be implemented in the coming years, if the Legislature decides to pass such legislation.
While Governor Brown’s proposed reforms move in the right direction, Long Beach has not waited for state action on this important issue to date. We have been a leader in pension reform, signing agreements with our police and fire associations that will minimize reductions to city services in coming years. Similarly, it is time for Long Beach to consider how we can act to enact pension reform for the remaining groups, achieving pensions that are both fair to employees as well as taxpayers.
On December 1, 2009, Management presented various pension reform options to City Council, and discussed actions taken by neighboring jurisdictions. Man...
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