Thursday, January 27, 2011

Cities push back on pension costs

 Chula Vista has just reached agreement with its police union for members to contribute toward their own pensions. Police, the last of five groups to reach agreement, have a history of trying to delay the inevitable. Two years ago, police postponed a scheduled pay increase in return for the city extending an existing labor contract to 2013. That effectively delayed a chance at pension reform.

But Chula Vista, now caught in even more dire budget circumstances, was forced to issue a mid-contract ultimatum: Start paying toward your pensions or suffer 33 layoffs.
In the end, police chose to take hits on both fronts. Pension contributions will be phased in over 18 months, but the delay means 12 to 15 police jobs are still at risk.
Delaying the inevitable comes at a price. Public employees are discovering pay raises are not possible until pension program costs have been tamed.
The trend is playing out in city after city. Chula Vista’s closed session vote Tuesday was only the latest example.San Diego Union-Tribune

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