Sand City Approves Tiered Retirement Plan
January 2, 2013
Tiny Sand City isn't hiring, but when it is, city administrators expect to save by cutting retirement benefits.
In an urgent meeting called for Dec. 27, City Council voted 5-0 to approve an ordinance modifying city staffers' pensions. Under the ordinance, new hires will be eligible for a 2 percent CalPERS contribution, down from 3 percent today.
This is expected to save $50,000 a year over 10 years, says City Manager Steve Matarazzo.
"In order to remain competitive with area-wide employers in the public sector, the city of Sand City has been generous to its current employees in terms of a benefit package," the agenda report states. "However, given the continuing Great Recession and the seemingly constant attack by the state to reduce revenues of local government, the second tier…is being proposed."
The city employs 19 people. There are no current openings, but Matarazzo expects Baby Boomers on staff to begin retiring over the next few years.