Tuesday evening, the Long Beach City Council took another significant step towards reducing current and future pension costs. Following is a summary of four the approved reforms:

  1. The City Auditors labor group, City Attorneys Association and City Prosecutors Association agreed to “give back” their 2011 contractual raises and contribute these funds towards the employee share of their CalPERS pension costs. Additionally, they agreed to reduce pension benefits from the existing 2.5% per year of service, retirement age 55, based on highest year salary to 2.0% per year of service, retirement age 60, based on three year salary average for new employees. Additionally, new employees will pay their full 8% of payroll contribution to CalPERS.
  2. The Management Association agreed to reduce pension benefits from the existing 2.5% per year of service, retirement age 55, based on highest year salary to 2.0% per year of service, retirement age 60, based on three year salary average for new employees. Additionally, new managers will pay their full 8% of payroll contribution to CalPERS.



  3. An agenda item called for the Mayor and City Councilmembers to “give back” their Fiscal Year 2011 1.8% raise and contribute these funds towards the employee share of their CalPERS costs. Currently, the employee contribution rate is 2.0%, which would now have equaled 3.8%. However, the City Council acted to amend the motion and increase the Mayor’s and City Council’s contribution to the full 8% effective immediately, thus taking a 6% pay cut.
  4. Additionally, the Mayor, City Council, City Attorney, City Auditor and City Prosecutor agreed to reduce pension benefits for new elected officials from the existing 2.5% per year of service, retirement age 55, based on highest year salary to 2.0% per year of service, retirement age 60, based on three year salary average. Also, new elected officials will pay their full 8% of payroll contribution to CalPERS.

After hearing from our independent pension analyst last week, it is clear that the rising costs of our unsustainable pension system will result in a significant reduction of services unless changes are made. Furthermore, the longer we delay, the larger the problem will be to solve.

Therefore, it is appropriate that elected officials lead the way towards full employee pickup. I am pleased that my colleagues unanimously supported the amended motion to increase pension contributions by the Mayor and City Council, and I am hopeful that other elected officials and our remaining labor organizations will follow as soon as possible. These actions are necessary to stabilize our pension system and avoid the draconian service and personnel reductions that will be necessary unless a plan is implemented to bring all employee groups to maximum pickup within a reasonable period of time. Bringing all employees to full pickup will reduce the City’s pension costs by approximately $25 million annually, which is close to the City’s projected 3 year budget deficits.

As I have stated previously, I believe the City Council will impose these reductions if unable to obtain the changes through the normal negotiation process. Additionally, the City Council has taken action to cancel the training academies and not hire any additional Firefighters or Police Officers until reduced pension benefits are in place. We simply can’t afford to add more employees to a broken pension system.

We are determined to face our problems now, and not kick the can down the road any more.

Gary DeLong is a Long Beach City Council Member.