Pension Reform Hits Murrieta City Hall

Employees of the city of Murrieta will immediately begin paying more of their pension costs following city council approval Tuesday of labor agreements.

Members of the Murrieta General Employees Association agreed to pay 6.5 percent of their California Public Employees' Retirement System beginning Sept. 9. By June 2013, they will pay all of the 8 percent employee share.

There was no council discussion on the matter Tuesday, although city of Murrieta Human Resources Director Jeffrey Price said council members were briefed on the negotiations that began in April as current agreements neared expiration.

The city in May as it announced .

As part of the agreement approved Tuesday, the city will restore a 5-percent cut in pay that has been in effect since June 2010, according to Price.

MGEA is made up of 108 employees such as office specialists, development services technicians and public works maintenance workers, Price told Patch. The association is not affiliated with any union, he said.

There are a total of 285 employees of the city of Murrieta, according to Price.

MGEA ratified the agreement Aug. 15.

The agreement also calls for pension reform for all new hires: a two-tier retirement plan will apply to new employees that will pay out at a rate of 2 percent at age 60, versus the rate for current general employees of 2.7 percent at 55.

A similar agreement in July.

MGEA also agreed to pay 50 percent of any increases in the lowest medical insurance rates offered through the city. Previously, the city had agreed to pay all increases, Price said.

The agreement with MGEA is expected to save $324,548 in the current fiscal year and $484,211 in 2013-2014.

A representative of MGEA did not immediately respond to an email request for comment Wednesday.

An agreement with the Murrieta Supervisors Association, which represents positions such as the principal librarian and public works engineer, changed their CALPERS employee contribution from 0 percent to 7 percent.

An identical agreement was adopted for the Management & Confidential Employees Compensation Plan, which covers positions such as department heads, the senior accountant and the city manager, Price said.

However, there was no immediate plan to re-open City Hall on Fridays, Price said. The city enacted a four-day work week when employees took the 5 percent pay cut in 2010. Price said the city saves money in energy by City Hall being closed on Fridays.