HomeMy WebLinkAbout09-Council Office CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
From: Tobin Brinker SUBJECT: PUBLIC PENSION REFORM.
Dept: City Council
Date: April 26, 2011
M/CC Meeting Date: May 2, 2011
Synopsis of Previous Council Action:
Recommended Motions:
Direct staff to make a presentation to Mayor and Common Council on public pension
reform within 60 days.
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Contact person: Tobin Brinker Phone: 384-5188
Supporting data attached: Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
Agenda Item No. /
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subiect•
Public Pension Reform.
Background:
At the meeting of April 18, 2011, Councilman Brinker asked the City Manager to have staff
conduct an analysis and present information to the Mayor and Common Council regarding public
pension reform, specifically to:
1. Prepare a presentation describing the City of San Bernardino's efforts and actions
taken to reduce public pension expenses through the negotiation process.
I 2. Perform an analysis that:
a) compares the City of San Bernardino's negotiated public employee pension
O reductions and other concessions to those implemented by other local government
agencies in the region; and
b) determines the savings that would be generated by additional public employee
pension concessions and whether these savings would allow the reinstatement of
jobs or re-opening of City Hall on Fridays.
3. Perform an analysis for discussion of a potential Charter amendment forbidding the
City payment of the employee portion of public pension benefit.
Financial Impact:
There will be no financial impact.
Recommendations:
Direct staff to make a presentation to Mayor and Common Council on public pension reform
within 60 days.
QUESTIONS ABOUT PUBLIC PENSIONS
1. How many city employees made more than $100,000 dollars last year? How
many of those employees had all or a portion of their pension (employee
contribution) covered by the city?
2. If it is possible to change the charter to limit council authority to pay the
employee portion of the pension contribution, is it also possible to create a tiered
system that pays 0% of the employee contribution for employees earning over
$100,000 dollars and 50% of the employee contribution for employees earning
between $50,000 and $99,999 and 100% for employees below $50,000 to be
phased out 10% a year until the city no longer pays the employee portion for any
employees?
3. If question#2 is possible what is the dollars savings under a system that looks like
that?
Employee Salary % of employee Phase Out time Savings
portion the city will frame
pay
$100,000 or more 0% immediately #of employees x
current payout
$50,000- $99,999 50% 10% a year over 5 #of employees x
years (50% of current
payout) + 10% more
each year
Under $50,000 100% 10% a year over 10 None first year but
years 10% more each year
for ten years.
4. Are there any elected officials that are currently having the city pay both sides of
the pension cost? (Who and How much?) Can they voluntarily give up that benefit?
Entered Into ReC, at MCC/CDC Mtg: 5-1z A
Agenda OOM No:
City Cler 'Coo Secretary
City of San Bernardino