At its March 22 meeting the Escondido city council took another step towards reforming the city‘s pension system.
By a 5-0 vote the council adopted a “Resolution of Intention to Amend the CalPERS Contract” and then heard the first reading of the “Ordinance Amending the CalPERS Contract.”
The city has been taking steps towards changing the way the city funds CalPERS for several months now. At the January 24 meeting the council approved a Memorandum of Understanding (MOU) with the police and fire employees’ unions in which they agreed to pay 1% of their CalPERS premiums this year, 2% next year and 3% the third year as employees share additional costs of their pensions.
The Escondido Police Officers’ Association/Safety Unit (POA) and Firefighters’ Association (FFA) voted by secret ballot, with 91% of the police union membership voting for this change and 97% of the firefighters’ union approving.
Effective May 18 this cost sharing arrangement will take effect. The amendment to the contracts will have to be ratified each August for the next two years to officially add 1% each year for a total of 3%.
This cost sharing will save the city about $561,000 for the term of the (2018-2020) Memorandum of Understanding (MOU) with both groups.