The Monterey City Council on Tuesday is slated to move ahead with a plan, which has progressed in fits and starts, to trim employee pension costs.
Based on agreements worked out more than a year ago with employee bargaining groups, Monterey is seeking to institute a two-tier retirement system.
Older hires would continue to receive pension benefits under old, first-tier agreements while new hires would have reduced, second-tier benefits.
"There have been some hang-ups in implementing the second tier," said city benefits manager Michele Maloney on Monday.
Under deals with public safety and non-public safety employees, the city was originally going to institute the second-tier plans as early as July 2011. But there were complications, Maloney said.
First, the city could amend its contract with the state Public Employees Retirement System, or CalPERS, on only one of two cost-shaving moves at a time. The city went ahead with increased employee cost-sharing and held off on its two-tier system.
Then the city had to await a state legal opinion, and the Legislature passed its own pension reform law. The new state law sets a new second tier plan starting Jan. 1.
The council will be asked to approve moves Tuesday to allow the city's two-tier plan to take effect Dec. 19. But a council report says the new state law "created some complex issues" that the council will hear about in closed session.
"It's all very convoluted," Maloney said.
Some city employees have been hired while the second tier was on hold, but many were internal hires or other people with established CalPERS pension plans, Maloney said.
Also Tuesday, the council will consider:
· Approving an agreement to join a new Peninsula Regional Violence and Narcotics Team. The group also has Carmel, Marina, Pacific Grove, Sand City, Seaside, CSU Monterey Bay, Monterey County and the Highway Patrol.
Monterey will contribute a full-time detective sergeant and narcotics-gang detective to the team.
· Setting a Dec. 18 public hearing to levy 2012-13 assessments on Monterey lodging businesses to support the Monterey County Tourism Improvement District. The assessments are $2 per room per night for full-service facilities and $1 per room per night for limited-service facilities.
If you go
·What: Monterey City Council meeting
·When: 4 p.m., Tuesday
·Where: 80 Pacific St., Monterey
If you go