The League of CA Cities has released the results of its 2011 City Manager Pension Survey, which was used to determine trends in pension changes across the state. Around 296 cities participated in the survey, and the results show that over the past two years many public safety workers and general government employees have experienced reduced benefits. Highlights from the report include the following:
- “22% or cities responding have adopted a new pension tier and it appears that most of the new tiers were adopted in the last two years.
- 73% of the new tiers adopted are for miscellaneous employees.
- Most cities that negotiated changes to their fire plans reduced benefit levels. Most cities that provided the 3% at 50 plan adopted a lower benefit of 3% at 55 plan. The 2% at 50 plan is the second most commonly adopted new formula.
- Most cities that negotiated changes to their fire plans reduced benefit levels. Most cities that provided the 3% at 50 plan adopted a lower benefit of 3% at 55 plan.
- 38% of cities responding have adopted some form of cost sharing with many of those changes occurring over the last two years.
- 12% of cities responding have negotiated changes to their final compensation calculations.
The survey concludes that further changes are expected when it comes to pension benefits at the local level, as reportedly 62% of cities are currently considering negotiating changes to their pension offerings. Read the full report here. Other retirement info can be found at the League’s Pension Information Center here.