Five public employee unions in San Jose put forward a pension reform proposal Tuesday that they estimate will save the city $467 million during the next five years. The unions represent police officers, firefighters, architects, engineers, middle managers and maintenance supervisors.
Whether or not the proposal finds a receptive audience from city negotiators and actuaries is still undetermined. Mayor Chuck Reed said in a staement he is looking forward to seeing how “our actuaries and financial experts analyze the fiscal implications and potential savings contained in the proposals presented today.”
Included in the pension savings plan, which was analyzed by actuary Thomas Loman of Bolton Partners on the unions’ behalf, a multi-leveled tier system for current and new employees would be developed, as well as giving sworn officers the option to join CALPERS—a system no city employee is currently part of.
George Beattie, president of the the Police Officers Association, said in a statement that his union would drop its arbitration over officers taking a 10 percent pay cut beyond this year if the city accepts the proposal.
According to Mayor Reed, San Jose is facing an “11th straight budget shortfall, and this time it is projected to reach $78 million to $115 million or more absent significant fiscal reform.”
Click Here to Download Union Proposals on the City’s website. (Scroll halfway down the page for proposals on issues for each particular union.)