Agencies Act For Pension Cuts

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Starting about 10 years ago, when stock market gains were enriching public service pension funds, state and local agencies across California granted some of the most generous pension benefits to peace officers and firefighters.

City of Modesto and Stanislaus County leaders approved the benefits in 2000 and 2001, respectively. They said the increases were intended to help retain veteran personnel and attract qualified people to their public safety departments.

Now, those benefits — allowing them to retire at age 50 with up to 90 percent of their salaries — are regarded as unsustainable and a burden for local government budgets in the current economic slump.

Eliminating the so-called 3-percent-at-50 benefit is a big part of the city and county efforts to rein in retirement costs. Eligible public safety employees are holding onto the benefit, but the local agencies don't intend to give it to new recruits once they start hiring again



Read more: http://www.sacbee.com/2010/12/25/3281688/agencies-argue-for-cuts-to-pensions.html#ixzz19EzOQPnL