It has become all too clear over the past few years that most government entities at every level in the state cannot sustain the retirement plans or pension commitments currently in place. Escalating personnel and retirement costs have fueled significant discussions on how to make changes.
“With pension reform emerging as a hot issue at both the local and state level, cities have been working collaboratively with stakeholders to identify solutions that address looming pension problems,” said Natasha Karl, lobbyist with the League of California Cities.
Karl will be joined by local experts at a panel discussion intended to give local businesspeople an opportunity to understand what efforts are underway at the state and local levels. Attendees will also have the opportunity to get their questions answered at the forum on Wednesday Oct. 26 at the City/County Library. To learn more about this Legislative Coffee or to register please click here.
Discussions at the city, county and state level include a variety of strategies to address pension reform. Options range from an across the board lowering of benefits and increasing retirement ages to a transition into a two tier system where new employees are subject to a newly negotiated rate system, all with a focus on balancing the books.
At a local level significant change is being discussed and proposed.
Earlier this year, the County and the largest union representing county employees came to an agreement that will save up to $20 million over the long term. A two-tiered system was one of the terms agreed upon which included lengthening the number of years averaged to calculate retirement compensation and increasing the age of retirement from 55 to 60 for new employees.
Meanwhile, the City of San Luis Obispo is currently negotiating with many of its represented employee groups in order to seek sustainable solutions.
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