Neil Nisperos, Staff Writer
Created: 06/25/2011 10:23:53 PM PDT
CHINO – City officials expect to see savings in the new fiscal year by enacting a two-tier pension reform system, paying off pension costs and leaving jobs vacant.
Police officers, elected officials and unrepresented management employees will now pay half the cost of member contributions for pension benefits from the California Public Employees’ Retirement System.
The city had previously been paying the contributions in full.
New employees hired on or after the start of the 2011-12 fiscal year will pay for their entire pension contribution.
Retirement pension formulas between the city and CalPERS were also amended to 2 percent at 55 years old for miscellaneous employees, and 3 percent at 55 for safety employees.
The pension changes are expected to save the city $497,000, according to a city report.
Council members recently approved the budget.
The city’s General Fund reserve balance of $27 million will be reduced to about $20 million, officials said, in an effort to keep services and pay pension costs.
City leaders approved spending $4.2 million from General Fund reserves to pay off a CalPERS “side fund” established six years ago to address public safety employee retirement costs.
Another $2.8 million from General Fund reserves will be spent to help maintain public services such as safety, after-school care, family counseling and senior services.
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