L.A. City Council approves pension reform plan for city workers (LA Daily News)

October 26, 2012 – Under pressure from a stricter competing plan by former Mayor Richard Riordan, the Los Angeles (Aa3 / 544351JW0) City Council on Friday voted to adopt a new pension tier with higher retirement ages, increased contributions and reduced payouts for workers hired next year. The 10-0 vote came even as union leaders threatened to go to court to force the city into formal negotiations over its plan before it can take effect. They also cited workers’ past efforts to help the city with its financial problems. Mayor Antonio Villaraigosa proposed the new tier which will require workers hired after next July 1 to stay on the job until they’re 65 in order to get pension benefits. They’ll also receive benefits up to a maximum of 75 percent of their pay and have to contribute more for health costs. The mayor estimated it would save $4 billion over the next 30 years. But the unions argued they should be allowed to negotiate the plan – even if it is for workers not yet on the city payroll. “It is important that we be allowed to express our concerns to you,” said Alice Goff of the Coalition of L.A. City Unions. “This is the only retirement our members have. They can’t get Social Security. The way this is going forward bypasses our collective bargaining system.”

Link to Article: http://www.dailynews.com/news/ci_21864003/l-city-council-approves-pension-reform-plan-city



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