Currently, Riverside offers its employees retirement packages that are calculated by using some of the most generous formulas that CalPERS offers. Its general service employees receive 3% at 60, and its public safety employees earn 3% at 50.
Under the proposed changes, that would switch to 2% at 60 and 2% at 55, respectively.
Additionally, the county would no longer pay for the employees’ retirement contributions. Currently, the county employees pay either 8% or 9% for the first several years of employment, after that the county covers the entire cost.
From the Press Enterprise:
Riverside County supervisors Monday will consider a pension-reform plan that could save the county more than $200 million over the next 10 years.
The plan would provide lower retirement benefits for newly hired workers, require employees to contribute more toward their own pensions and increase the retirement age for public-safety personnel.
“Clearly, given the severe budget distress the County is presently experiencing, as well as the need to realign revenues with future growth expectations, reform is in order,” County Executive Officer Bill Luna wrote in a report to supervisors.
Read the full article here.