Pismo Beach City Council on Tuesday to consider new contract with police officers' union

The Pismo Beach City Council is set to consider Tuesday an agreement with members of the police officers’ union that introduces a two-tier retirement system for new employees and increases the amount they pay toward their pensions.

If approved, the city will have reached agreement with all of its employee groups over the past three years to change retirement benefits.

The city recently completed negotiations with the Pismo Beach Police Officers Association and reached an agreement on a two-year contract extension, according to a news release.

The agreement affects both sworn and non-sworn employees working for the police department. Non-sworn employees will start paying more toward their retirement contributions in October 2013, which city officially say will save about $11,200 a year.

All new employees will pay the full employee share toward their pensions, which, coupled with changes to the retirement program, is anticipated to save as much as $45,000 a year in 10 years.

Police union employees have also agreed to a restructured health benefits and to forgo a cost of living increase for two years. They will receive a one-time payment of $550 each year, according to city officials.

The city announced changes to retirement benefits for other employee groups about a year ago. The City Council last October approved contracts that at the time covered 62 full-time employees.

Those changes were estimated to save $63,500 in the most recent fiscal year, which ended June 30; and $73,000 in the current fiscal year 2012-13. Those figures do not include anticipated savings from the police union agreement.

The City Council meets Tuesday at 5:30 p.m. at 760 Mattie Road in Pismo Beach. For more information go to http://www.pismobeach.org.