What Happened?
Firefighters in Mountain View, Calif., will soon be contributing 15.4 percent of their paychecks to the existing pension and health plan, helping to save the city $250,000 in the next three years.
Why?
The city entered its latest budget cycle needing $600,000 in concessions from unions. This new agreement will raise overall employee contributions to 15.4 percent, but that could change if the union agrees to move into the CalPERS Health System; in that case, the city would contribute 1.2 percent of the new increase to CalPERS. A move to that health insurance would save the city $550,000.
What Else?
With the agreement, the fire union essentially agreed to contribute $165,000 in savings for Mountain View. In return, they will get a two percent COLA increase in the third year of the contract.
Comparables
Below are some details about firefighter contributions in other cities and states around the country, with details on recent increases if timely:
- Massachusetts: In the Commonwealth of Massachusetts, pensioners can pay as much as 12 percent towards retirement, depending on when they actually began employment.
- Nevada: Nevada recently increased its contribution rates by 2.25 percent.
- Alabama: The city of Tuscaloosa, AL, is mulling a .25 percent increase for firefighters.
- Colorado: Colorado Springs, CO, is bumping employee contributions to 20 percent.
- Missouri: St. Louis is also raising contribution rates for firefighters.
- California: Sacramento, Calif., is pushing for higher rates as well, from 6 percent to 9 percent or higher.
Other Resources, Articles
- Ohio: Read how Upper Arlington, OH, is phasing out taxpayer funded pension contributions.
- Rhode Island: An interesting study in Woonsocket, RI, about mortality rates and how they affect pension liabilities.