San Diego Mayor Jerry Sanders has proposed eliminating pensions for new-officer hires, and instead giving them a 401(k) account, reports the San Diego Union-Tribune.
Currently, a new officer receives 2.5 percent of his/her salary for each year worked once they reach age 50 and have at least 20 years of service. Officers also now receive 3 percent at age 55 after 10 years of work. The pension benefit is calculated based on the highest annual salary now, but becomes based on the average of the top three salaried years beginning July 1, 2012.
The plan comes after the failure of Proposition D, a Nov. 2 measure supported by Sanders that called for a sales tax increase to help balance the city's $73 million budget deficit.