Pruning pensions, hurting for schools

The City Council took a step toward shrinking the pensions of future municipal employees, and heard from an ultra-endurance athlete planning a world record, 24-hour pier-to-pier run to raise money for Hermosa schools.

The council unanimously approved a new formula that would call for future employees to shoulder a large share of the regular payments that go into a state fund, to be drawn upon when they retire. The council’s action amends a state contract that governs the pension contributions.

The city’s management is expected to ask its employee groups to agree to the “two-tiered” pension system, so called because future employees and existing employees would get significantly different pension deals.

For Police Department hires, the new formula would reduce the city’s portion of the career-long pension-fund payments from 48 percent to 13 percent. For Fire Department hires, the formula would reduce the city’s portion from 38 percent to 13 percent, and for other future employees, the formula would cut the city’s portion from 15 percent to 7 percent.

The formula also includes other changes that would further reduce the city’s costs.

“The difference in rates is substantial and will save the city money over time as new employees are hired,” Finance Director Viki Copeland wrote in a report to the council.
City Hall has frozen 14 vacant municipal employee positions, including five in the Police Department. Councilman Pete Tucker said the new formula would allow the city to hire “two police officers for the price of one.”

The two-tiered concept also is being discussed in other areas of cash-strapped California.

In other matters, Hermosa ultra-endurance athlete Christian Burke told the council he will run a continuous loop in the sand between the Hermosa and Manhattan Beach piers from noon Sept. 5 to noon Sept. 6, aiming to break a Guinness-recognized world record.
Burke, who has volunteered extensively at the cash-strapped city schools, said the purpose of his “pain-fest” is to raise money for the Hermosa Beach Education Foundation.

Donations can be made, as well as reservations to trot a lap or more with Burke, at Hermosa24.com. ER