Pension cuts for new city workers?
| Monday, Feb 08 2010 07:31 PM
Last Updated Monday, Feb 08 2010 07:31 PM
Proposals on Wednesday's special meeting agenda
* The pension formula for sworn police and fire staff, or so-called "safety" employees, would be reduced to 2 percent of salary at 50 years of age as proposed by Councilmember Zack Scrivner, or 2 at 55 under a proposal from Councilmember David Couch. It is currently 3 at 50.
* New non-safety workers would get either 2 at 55 or 2 at 60 according to Scrivner and Couch proposals, respectively. Either formula would be a reduction from the 2.7 at 55 new hires now receive (tenured staffers get 3 at 60).
* New staffers would pay all of their employee contribution to pension plans, something the city now pays for after about five years of employment. For non-safety workers, the amount totals 8 percent of salary; for safety employees, 9 percent.
* In addition, Couch wants the city to offer 401(k) plans. Such a benefit wouldn't need voter approval so it isn't on Wednesday's agenda.
Source: City of Bakersfield
Wording for proposed ballot measures that would allow Bakersfield residents to vote on whether to cut pension benefits for new city employees will get public discussion at a special meeting Wednesday afternoon.
City Councilmember Zack Scrivner, who initiated the ballot measure idea at the council's Jan. 27 meeting, said his proposed formulas match what the city offered before it increased pensions by 50 percent in 2001 and 2002 (see sidebar for details).
Formulas offered by Councilmember David Couch would cut pensions even more, to the lowest level offered by the California Public Employees' Retirement System, or CalPERS, which administers the city's retirement benefits.
Scrivner said Monday he's not married to his formula -- he'll support whatever the council decides.
But he'll argue Wednesday that returning to former levels gives the council a simpler message to take to voters.
"What we had before was affordable," Scrivner said.
Couch said CalPERS staffers have told him the majority of pension cost increases -- roughly 75 to 80 percent -- have been from the stock market's dismal performance, not increased benefits.
"To reduce it back to where it was probably doesn't go far enough for what we're trying to achieve," Couch said. Costs would have skyrocketed under the old formulas, he said, and the council would be talking about pension reductions anyway.
Couch said that like Scrivner, he will support whatever the council decides.
"I'm not interested in taking credit for anything," he said.
A union official representing the city's blue- and white-collar workers said the unit isn't focused on which proposal is preferable.
"We feel the councilmembers are rushing into this matter," said Billy Owens, president of the SEIU Local 521, which represents about 660 city staffers. "This could be put on a ballot at a later date, since there is no immediate savings."
The union has historically been willing to negotiate, Owens said, but doesn't want to be pressured by the ballot measures.
Representatives of police and firefighter unions couldn't immediately be reached Monday.
To get any measures on the June 8 primary ballot, the city council will need to approve final wording at its Feb. 17 regular meeting.
Scrivner, who has been talking pension reform for years, said the time is right to move ahead: his colleagues and the public are now aware of rising pension costs and unfunded liabilities.
"I believe this is the best climate for us to go to the voters and ask whether to adopt this reform," Scrivner said.
Couch, who said he didn't know a ballot measure was an option until Scrivner launched the idea, said the process offers a way around stalled negotiations. Current economic conditions mean workers are being asked to give up benefits and get nothing in return, Couch said, something hard for union leaders to take back to their memberships.
When Scrivner brought up the ballot idea, Couch said, he thought: "Wow -- that's one way to break through this logjam."
The council meets at 2:30 p.m. in chambers at City Hall, 1501 Truxtun Ave. A closed session will be held before public discussion of the ballot measures, meaning the public portion of the meeting will start after 2:30 p.m.
