PLEASANT HILL, Calif. — The City Council on Monday approved a contract with the police union that includes raises as well as health and retirement benefit cuts.
The four-year contract caps city leaders' yearlong campaign to restructure benefits by requiring employees to contribute more for their pensions and health care premiums.
Salaries and benefits make up nearly three-quarters of the city's general fund expenditures. The city expects to save about $1.4 million over the life of the contract.
Last year, the City Council imposed a one-year contract on the 52-member Police Officers Association.
"The bottom line is, I really think this contract is going to let people who were on the fence with the imposition last year, it's going to give them some stability," said Officer Todt Clark, union president. "It's fair all around and I'm really hopeful that we keep the employees that we have and that we can move forward and hire some new employees."
The contract includes raises in each year to soften the blow of higher medical and retirement costs, Mayor John Hanecak said.
In 2012, police officers will receive a 3.5 percent raise and nonsworn employees will get a 3 percent salary increase. In 2013, both groups of employees will get a 3.25 percent raise and 2.5 percent in 2014. In the contract's final year, police officers will get a 2.25 percent increase and nonsworn employees will get 2 percent.
"(The contract) provides security for employees knowing what to expect for the next four years instead of wondering," Hanecak said. "It provides for financial stability for the city as well, knowing what its expenses are going to be."
Beginning Sept. 1, employees will pay 15 percent of the health insurance premium. The employee share increases to 20 percent in 2013 and remains at that level through the end of the contract.
The employee contribution to CalPERS, the state-run retirement system, is 9 percent for sworn personnel and 7 percent for nonsworn workers. Until last year, the city had paid the entire employee share.
For current workers, the contract phases out the city's payment of the employee contribution by July 2014. Retroactive to July 1, the contract calls for police officers to pay 6 percent of the employee contribution and dispatchers to pay 5 percent, while the city picks up the rest.
Next year, police will pay 7.5 percent and dispatchers will pay 6 percent. Future hires will pay the full CalPERS employee contribution.
Newly hired sworn personnel will be eligible to collect a pension of 3 percent at age 55 and 2 percent at age 60 for nonsworn employees, a provision implemented last year as part of the imposed contract. Pension payments for new hires will be based on the average of three years of salary, instead of one. The contract also eliminates the city's contribution to a private retirement account.
"It's a relief to have it done for four years," said Clark, who praised Hanecak for working hard to reach an agreement. "I just think that it's a good way to start the healing process between the city and the POA."