City Employees’ Benefits and Pensions Big Topics Tonight

Employee benefits and pensions will likely be the focus at tonight's City Council meeting as the city holds a public hearing on the tentative agreement it reached with the Pleasanton City Employees Association, AFSCME Local 955.  

The City Council will vote on the contract Feb. 1.

As the economy continues to struggle from the most recent recession, anger around public employee pay and benefits at the local, state and national level have increased. 

Since fall of last year, residents have attended City Council meetings to talk about the city's unfunded liabilities, saying the figure is anywhere from $180 million to $290 million. A group has started a petition asking the city to hold off on approving the contract until public workshops are held. 

In the weeks leading up to the Nov. 2 elections, Pleasanton City Council and mayoral candidates spoke about the need for the city to deal with its unfunded pension liabilities. The only city employees who contribute to their pensions are firefighters, at 2 percent. At the last City Council meeting, the city manager amended his contract to reflect a full 8 percent contribution (tonight's meeting will include changes to other management staffers' pensions to a 4 percent contribution). 

Meanwhile, the city say it's implementing a two-tiered pension structure, in which newer employees receive less lucrative benefits. 

The city says it will host public workshops with experts to explain the California Public Employees' Retirement System. 

The staff report on the tentative agreement highlights the following:

• The terms of the contract will expire in March 2013. 
• No wage adjustments or salary increases were made. 
• Employees would pay 2 percent of the 8 percent employee contributions to CalPERS effective in July, saving the city about $722,000.
• New employees hired after Jan. 1 who retire from Pleasanton will receive only single-party medical benefit. Previously, the city allowed for a two-party benefit. The benefit will end once the retiree is eligible for Medicare at 65 years old. 
• Employees will increase contributions to medical premiums. The city's contribution to premiums will be capped at 15 percent.
• Those who retire starting July 1 will have the same benefits as active employees as they relate to higher co-payments and the cap on increases.

The firefighters negotiated their contracts last year. Meanwhile, city police will have new contracts by June. 

At tonight's public meeting, city staff will make a report about its strategy to manage personnel costs. This strategy includes the following actions: 

• Soft hiring freeze
• Control salary increases
• Modify employee/health care benefits during and post employment
• Adjust CalPERS employee contribution

The City Council meeting starts at 7 p.m. at 200 Old Bernal Avenue.