Following the lead of cities throughout the state, Glendora reached an agreement with its two police officer associations to reduce the retirement benefit plan by 33 percent for newly hired sworn officers.
The amendment to the plan provides that when a sworn police officer retires at age 50, the retirement formula will be calculated by 2 percent multiplied by the number of years of service. The city council unanimously approved the plan Tuesday after the amendment was agreed upon by the city, the Glendora Police Officers Association and the Glendora Police Management Association.
According to city documents, the contract amendment with CalPERS stipulates that the employee’s compensation will be based on the average of the three highest-paid years of compensation.
Previously, officers’ retirement plans were set at 3 percent at age 50 with the highest year (usually the final year of service) as the basis for compensation calculation of the retirement benefit.
Interim Human Resources Director Bob Blackwood said the amendment will cut up to 25 percent of its current retirement costs, although it will take over a 15 to 20 year time period for the city to reap the savings.
“But this is a step towards planning for the future,” said Blackwood during Tuesday’s meeting.
Adopting lower retirement tiers is becoming , according to a recent survey. A Pension Sustainability Survey conducted by the League of California Cities, showed 47 percent of 152 cities have adopted a new pension tier.
Glendora’s plan for newly hired sworn officers will go into effect after Oct.15.