The city of Folsom and its largest bargaining group have reached an agreement that will save the city $1 million through 2013. 

The agreement is an example of the give-and-take that naysayers call too little, but pragmatics call a good step forward.

The reforms include not only a two-tired pension system, but also a requirement for a three-year salary average, which should help stem pension spiking, as well as increases in current employee contributions towards benefits. In exchange, the city agreed to a one-time pay raise and a decrease in the number of furlough days.

From the Sacramento Bee:

The city of Folsom will save more than $1 million through mid-2013 under a new labor pact with more than 200 workers who will pay more for their pension benefits.

The agreement between Folsom and Operating Engineers Local 39 – the city’s largest bargaining unit – reflects the hardships of an economy not expected to make significant gains anytime soon, City Finance Director Jim Francis said.

“You’re getting to a place now that we hope is not the new normal, as they say,” said Francis. “But you’re not going to see a whole lot of change going forward.”

Read the full article here.