City Council Resolves to Reform Pensions

In what officials called a small but important step in the battle for pension reform, the City Council voted in new pension contribution requirements for members of some city employee unions on Tuesday night.

The City Council approved a memorandum of understanding with the Long Beach Management Association and the Long Beach Association of Confidential Employees in Council Chambers Feb. 16.

Under the terms of the agreement, the union members agree to a lower pension formula of 2.0 percent with a minimum retirement age of 60. The original plan was 2.5 percent with a retirement age of 55.

The agreement also holds that any newly hired city employees represented by the associations will pay the full California Public Employees’ Retirement System contribution—8 percent—and that the city will not provide a cost of living increase from Oct. 1 2010 to Sept. 30, 2011 for the associations’ members.

 “Clearly we need to do more, but I think this is a great start,” said Councilman Gary DeLong of the Third District, which includes Belmont Shore and Naples.

Pension reform is a hot button issue for a number of California cities and counties as residents debate how much government should pay to retired former employees.

Mayor Bob Foster said that if the city does not deal with pension reform soon, there would be massive debt “the city can’t afford.”

“We’re not moving fast enough, and it’s going to hurt everyone,” Foster said.

Staff reports did not indicate the fiscal impact of the agreement with the two employee associations, and Councilmember Gerrie Schipske asked if city staff could provide such figures in the future.

Resident Tom Stout, a founding member of the Long Beach Taxpayers’ Association, said that the agreements are a small step in the right direction, but told council members the process of pension reform is taking too long.

 “Talk about a snail’s pace,” Stout said during public comments.

Stout also said the part of the resolution that requires new hires to pay their full CalPERS contribution will not save money because the city is not hiring new employees.

City Manager Pat West said that the city is hiring, but they are just not hiring many people.

At the meeting, the council also approved agenda item 21, which requires newly hired employees represented by the Long Beach Association of Engineering Employees, or not represented by an association but hired by the city auditor’s office, to pay the full eight percent pension contribution.

Also under the agenda item, all newly hired city employees that are classified as “unrepresented non-management miscellaneous employees” will be to give the same percentage.

As part of an amendment to agenda item 21, officials voted to require the mayor and the City Council to pay the full 8 percent of their CalPERS contributions.           

“I think it's appropriate, as we move toward full employee pickup, that the council leads,” said Councilman James Johnson of the Seventh District.

The original terms of the proposal required other city elected officials to pay the full 8 percent, including the city prosecutor, the city attorney and the city auditor, but the council amended the proposal to make it an invitation for those officials to join the council in their decision.  

To watch a video of the council meeting, visit http://longbeach.granicus.com/ViewPublisher.php?view_id=12.

To see a schedule of council meetings and others, go to http://longbeach.legistar.com/Calendar.aspx.