City of Solana Beach employees agree to salary and retirement benefit concessions
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5/27/10 - The Solana Beach City Council unanimously approved an agreement last night with a City employee group that will have a positive impact on the City's financial position for years to come.
Under terms of a three-year Memorandum of Understanding, employees agreed to a two-year salary freeze and higher employee contributions to the CalPERS retirement system. By 2011, these employees will be paying the full "employee share" (8 percent) of the CalPERS contribution. The agreement also includes reduced retirement benefits for employees hired after July 1, 2010.
"The entire council and our city manager were extremely pleased that we were able to work out this arrangement with our employee group," said Mayor Tom Campbell.
"The willingness and understanding of our employee groups to agree to salary freezes for the next two years shows their commitment and their loyalty to our city, and we really do appreciate their efforts. I just want to applaud them all."
With this agreement in place, at least 65 percent of the City's workforce have agreed to pay their full employee portion of the CalPERS contribution over the next three years.
City Attorney Johanna Canlas read the following statement describing the MoU:
"Pursuant to government code section 54957.1a6, the city council unanimously approved an agreement with Solana Beach Employee Association, Miscellaneous Unit with the following terms: They have entered into a three-year MOU beginning July 1, 2010 to June 30, 2013. A salary freeze for fiscal year 2010-2011 is in place with a re-opener by either party the years two and/or three for potential salary adjustments, whether increases, and/or decreases.
"Association members receive one additional floating holiday for July 1. Association members that use less than 40 hours, five days of sick leave annually, may convert that to vacation week. The association members agreed to pay their entire employee portion of the CalPERS retirement contribution of 8 percent over the three year term of the MOU as follows: Effective July 1, 2010, employees pay an additional 2.242 percent for a total of 3.515 percent. Effective July 1, 2011, employees will pay an additional 2.242 percent for a total of 5.757 percent, and effective July 1, 2012, employees pay an additional 2.243 percent for a total of 8 percent.
"Parties agreed to add a second-tier, establishing a new pension formula of 2 percent at 60 for employees hired on or after July 1, 2010, with the use of the employee's highest three year salary average. Copies of the agreement are available at the city clerk's office upon request.
"In addition, the management and unrepresented employees will also receive one floating holiday, they will also pickup their full employee share of the CalPERS retirement contribution over a 3-year period, and a second tier with a new pension formula of 2 percent at 60 for employees hired on or after July 1, 2010.
"With the city council's unanimous decision at the last meeting, to pick up its full employees share beginning July 1, 2010, at least 65 percent of the city's workforce have agreed to pay their full employee portion of the CalPERS retirement contribution over the next three years."
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