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City of Chula Vista Achieves Comprehensive Pension Reform
 
This afternoon, the Chula Vista City Council ratified the last of five labor union agreements to complete its goal of comprehensive pension reform for all City employees. The Council voted to accept the Chula Vista Police Officers’ Association’s (CVPOA) agreement. With all City employees participating in the re-structured pension program, the contributions will generate over $6.1 million in annual taxpayer savings. All labor unions have also agreed to a second tier CalPERS retirement and health plan for new hires. Chula Vista is the first city in San Diego County to accomplish such comprehensive reform with all represented and non-represented employees.

The 226 members of the Police Officers’ Association participated in pension reform despite no contract re-opener requiring them to do so. As a part of the agreement, CVPOA members have agreed to contribute 9% towards their CalPERS retirement plan. This agreement will generate over $3 million annually. The agreement also spared eight positions from being eliminated due to budget cuts.

“We’re pleased with the City Council’s vote to bring closure to this situation. The CVPOA believes this agreement is an important step to better secure the fiscal health of the City while simultaneously saving jobs and protecting public safety in our community,” said Phil Collum, Director of Communications for the CVPOA.

City Manager Jim Sandoval said, “I believed comprehensive pension reform was imperative to the success of this organization’s financial future. On Oct. 5, 2010, we decided it was time to tackle this pressing issue. I am very pleased and proud we have been able to reduce the impacts of essential city services while creating a long-term sustainable financial solution that will benefit our community for years to come.”

”Along with the earlier action from every other employee union, today’s ratification of the POA’s agreement has helped the City of Chula Vista accomplish pension reform across the board,” said Chula Vista Mayor Cheryl Cox. “This has been a long road and the decisions have been challenging for all employees, but we have taken a significant step towards sustaining the city’s financial health and services.”

All five memorandum of understanding (MOU) agreements will be posted on the City’s website, www.chulavistaca.gov under Featured Focus, within the week.

With all five unions agreeing to pension concessions, the total number of positions to be eliminated from the July 1, 2011 – 12 budget is now 98. Fifty of these positions are directly attributed to the loss of the revenues associated with the defeat of Prop H, the Telecommunications User’s Tax (TUT).

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