2:09pm | The Long Beach City Council on Tuesday will consider new labor agreements with four employee associations, aimed at reforming their pension plans to become more affordable for the cash-strapped city. Pension reform has been identified by several public officials, including Mayor Bob Foster, as a top priority.
The organizations involved are the City’s Management Association, Confidential Employees, Attorneys Association and Prosecutors Association.
According to a City of Long Beach press release, the new agreements that the City Council will consider include the following changes:
- New employees will pay the full 8% of their salaries for their pension costs, increasing from the current level of 2%.
- New employees will retire with a benefit formula of 2% for each year worked, as opposed to the current formula of 2.5%.
- New employees will be eligible for full retirement at age 60 rather than the current age of 55.
- Employees final compensation will be based on a three-year average of their salary, not the year in which they earned the most.
“These four groups should be applauded for their willingness to come to the table and recognize that pension reform is in everyone’s best interest,” said Mayor Bob Foster. “Ultimately, the work needs to go beyond these agreements, but these groups should be commended for agreeing to take these significant steps toward pension reform.”
City Manager Pat West agreed.
“The need for pension reform is real, and without change, our pension system is unsustainable,” he said. “I can’t say enough about these four groups for their willingness to negotiate these changes. We will continue to reach out to our remaining bargaining units with the goal of implementing pension changes for all units.”