Pleasanton is attacking its pension debt head-on.

A new contract has been reached with the city’s largest employee union, which would establish Pleasanton’s first-ever employee contributions to retirement costs. Until now, all 8% of contributions had been made by the city. Now employees will be responsible for adding 2% of their own.

Also on the chopping block are retirement benefits. Currently, employees and their spouses are entitled to medical benefits after retirement. The new contract would allow only the employee to receive the benefits package in retirement. Even then, the benefits would end when at 65, when the retiree becomes eligible for Medicaid.

From the Bay Area News Group:

City officials have put off discussions on a new employee contract and the city’s mounting pension liability until a Feb. 1 workshop.

The city council was expected to discuss on Tuesday its personnel costs, a new two-year contract for one union and its looming pension liability. However, with Mayor Jennifer Hosterman away at the U.S. Conference of Mayors and Council Member Cindy McGovern out sick, the remaining members opted to delay.

The city’s director of finance, Emily Wagner, was also absent due to illness.

Read the full article here.