San Francisco has signed a deal with its police union that will increase pension fund payments in return for receiving past raises and avoiding layoffs, according to published reports.

Mayor Ed Lee and the union agreed to the deal Saturday that will help balance the city’s budget, the San Francisco Chronicle reported.

The union will get a 3% raise out of 5% owed them before the end of the fiscal year immediately and the remaining 2% in April.

Police officers agreed to pay 3% more into their pension fund over the next two years, according to the newspaper.

The firefighters’ union is expected to vote soon on a similar deal.

The mayor and public defender Jeff Adachi have proposed alternate ballot measures to try to overhaul the city’s pension and retiree health benefit systems.

City officials have said employee pension costs, wages, and other benefits are expected to be the largest contributors to the deficit, rising 32%, or $648 million, over the next five years. They said benefit costs are projected to rise 62% by fiscal 2016.

San Francisco’s deficit is set to skyrocket almost 200% over the next five years if nothing is done to fix its budget problems.

The gap between revenues and costs will rise to $829 million in fiscal 2016 from $283 million in fiscal 2012, according to the city’s five-year plan.

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