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Crime & Safety

Measure G: A First Step Toward Pension Reform

Tuesday's ballot measure would roll back pension rates for new firefighters and police officers and save the city millions of dollars over time.

Tuesday’s ballot is filled with measures that attempt to alleviate the city’s budget crisis, from taxing medical marijuana and oil production to restricting campaign contributions.

Measure G, which would affect new hires at the city Fire and Police departments, would change the rate of the pension benefits that threaten to eat away a large portion of the city’s budget. Currently, a firefighter or police officer who has served for 33 years receives up to 90 percent of their salary in a yearly pension, and receives at least 50 percent after 20 years. The amendment would close that gap slightly, changing the minimum pension to 40 percent of their salary while adding, for the first time, a 2 percent employee health contribution. Yet the maximum pension rate would remain at 90 percent for any employee who retires after 33 years of service.

While many argue that the measure should have decreased that rate, others think it is fair for both new hires and veterans. It is a setup that rewards delayed retirement, meaning that sworn public safety workers are less likely to retire at an early age if there are larger pension benefits down the line.

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“We need to continue to have the most competitive force out there, so our pension needs to be comparable to other municipalities," said Councilman Dennis P. Zine. "Most cities in the state provide 90 percent at 30 years; ours is at 90 percent after 33 years.

“I would be open to support an incremental decrease over time, but one that makes sense, and would not hurt our ability to hire new employees in the future,” Zine said.

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Since the measure only affects hires after July 1, it wouldn't have an immediate impact on the city’s $350-million deficit. But it would save the city money over time.

If it passes, the city is projected to save $175 million per 1,000 new hires over a 30-year period, Zine said.

The city is focusing on pension reform for new employees because it is more difficult to negotiate deals with existing employees.

“Pension reform for current employees is more challenging, given that, in large instances, we are legally bound to negotiate, work out and agree on concessions/terms with labor that benefits the worker, the city and the taxpayer,” Zine said.

The measure is a first step from Mayor Antonio Villaraigosa and Los Angeles City Council toward pension reform. This week, Villaraigosa announced plans to roll back pension benefits for civilian employees. Measure G is the first drop in the bucket.

"Passing Measure G will save L.A. taxpayers billions of dollars by implementing much-needed pension reform.  It's an important step toward putting the city on more fiscally sound footing," said City Council President Eric Garcetti.

The unions are not fighting the measure.

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