Impasse Declared in Pension Reform Talks

Published: Wednesday, July 16, 2008 2:53 PM PDT

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San Diego Mayor Jerry Sanders today declared impasse in his negotiations with one of the three unions affected by his pension reform ballot proposal.

Talks between Sanders and Local 127, the city's blue-collar union, officially broke down hours ago after the union rejected the city's final offer.

Under Sanders' proposal, which will go before City Council next week, city employees hired after July 1, 2009 will not be able to retire before age 60, and their maximum benefit payout will be reduced by 30 percent. (For more details read here and here.)

In total, the proposed plan would, in a generation, save the city $22.5 million annually, according to Sanders administration estimates.

The measure can go on the ballot with or without the approval of the unions, but state law requires that the mayor to at least try to hammer out an agreement with the unions representing the affected employees.

The administration acknowledged that Local 127 made two counterproposals during negotiations, but neither addressed what Sanders considers the core issues, which include the lowered retirement age and the implementation of a hybrid plan that incorporates a 401(k)-style retirement plan into city worker retirement savings.

I'm still waiting for a call back from Local 127 officials.

Last week, the Deputy City Attorneys Association signed on to the mayor's plan. Sanders remains in negotiations with the third union, the Municipal Employees Association, but MEA officials have said repeatedly that they won't agree to a new pension plan separate from other pay and benefit issues.