Agreement Reached with the Santa Monica Police Officers Association Aligns with City Focus on Fiscal Sustainability
July 12, 2017 2:23 PM
SANTA MONICA, Calif. – The first of ten City of Santa Monica employee union agreements was agreed to yesterday with the Santa Monica Police Officers Association (POA). At its July 11, 2017 meeting, the Santa Monica City Council authorized the City Manager to execute a Memorandum of Understanding (MOU) with POA. The components of the negotiated changes are outlined below with a net increase of 5.5%, or a total cost of approximately $1,052,032 for FY 2017-18.
Significant negotiated changes:
- A 6% salary increase in the first year of the agreement (subsequent two years are 2.5%).
- Employees will increase their contribution to 15.5% towards the cost of their retirement benefits through the California Public Employee Retirement System (CalPERS), one of the highest contributions in L.A. County. This is a significant increase from the current 6.5% contribution. In addition, they will contribute 2% more towards their retirement in the subsequent years of the contract.
- Elimination of the Employer Paid Member Contributions plan. This constitutes a value of 9% in retiring employee salaries that the City formerly reported to CalPERS. This cost is shifting to employees and is part of the 15.5% contribution.
- Employeeswill pay an additional 2% of the cost of their health insurance for a total contribution of 10% the first year and 11% by the end of the contract.
The current MOU with POA was established on August 26, 2014. This new negotiated MOU is effective July 1, 2017 through June 30, 2020. Negotiations with the remaining bargaining units are ongoing and will be brought to Council in the coming months.
“This is a major step forward to address our long-term pension obligations by significantly raising the employee share of contributions,” said Mayor Ted Winterer, “while continuing to be competitive for public safety compensation compared to nearby communities.”
The Council is currently undertaking a compensation review overseen by the City Council Audit Subcommittee that will provide a comprehensive analysis for future policy direction on employee compensation.
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https://beta.smgov.net/compensationstudy