Los Angeles Mayor Antonio Villaraigosa announced Monday a pension reform proposal for new police and firefighters that he said would save the city $173 million for every 1,000 new cops and firefighters hired.
The mayor said the plan, which needs City Council approval, is meant to balance cost savings without detracting from recruitment and retention efforts.
“We know that a structural imbalance exists between revenues and expenditures and projected general fund deficits are driven by rising pension and health care costs,” he said in a statement.
The mayor said the proposal requires newly hired police officers and firefighters to work longer in order to qualify for enhanced retirement benefits.
The proposal will also require new hires to pay 2% of their salary into the pension fund in order to qualify for health care as part of their retirement benefits. City employees currently do not pay for health care benefits they receive in retirement.
If adopted by the council, the reform plan must also be approved by a majority of voters. Villaraigosa urged the council to place the pension reform plan on the March 8, 2011, municipal ballot.
