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Note: Missing finding numbers detected: F2, F5
Findings and Recommendations 6 findings
F1
Page 19
—- Without additional revenue continued increases in retirement costs may result in further reduction of public services. City of Hercules Response: The City agrees with this finding.
No recommendations for this finding
F3
Page 19
— Cities that have implemented lower pension formulas for new hires (Tier 2) have reduced their overall future pension obligations. City of Hercules Response: The City agrees with this finding and has implemented Tier 2 for Public Safety hires. City of Hercules August 28, 2012 Response to Grand Jury Report 1209
Related Recommendations (1)
R3
Page 20
— In order to control unpredictable future expenses, cities should consider reducing or eliminating their financial obligation for retiree health care for future employees. City of Hercules Response: This recommendation requires further analysis. Currently, the City of Hercules retiree health care pays the lowest amount on the Single Kaiser rate.
F4
Page 20
— Although CalPers administers the defined benefit pension plans, including the investment programs, cities have some flexibility to control their own retirement costs. City of Hercules Response: The City agrees with this finding.
Related Recommendations (1)
R4
Page 20
— Cities should review the key points of the Governor’s Pension Plan, and consider incorporating its points as a long term strategy for addressing retirement costs. City of Hercules August 28, 2012 Response to Grand Jury Report 1209 City of Hercules Response: The City of Hercules will review the Governor’s Pension Plan and analyze the points in the Plan in balance with the City’s overall employee compensation program and costs. This will help the City address retirement costs as well as other workforce costs going forward. If you have any questions regarding these responses, please contact City Manager Steve Duran at (510) 799-8216. Sincerely, ( Cun an Romero, Mayor City of Hercules City Council Carol Federighi, Mayor Mike Anderson, Vice Mayor Brandt Andersson, Counci! Member Carl Anduri, Council Member Don Tatzin, Council Member LAFAYETTE 8/23/2012 Lloyd Bell, Foreperson Court Street P.O. Box 431 Martinez, CA 94553-0091 Dear Mr. Bell: Pursuant to your June 6, 2012 letter regarding Grand Jury Report No. 1209, “City Retirement Plans, An Unsustainable Benefit,” please consider this to be the City of Lafayette’s response. According to of the Report, Lafayette is required to respond to Findings 1,6, 7, 8 and Recommendations 3 and 4.
F6
Page 20
— Retiree health care may represent a significant future cost for those cities that pay for all or a portion of those benefits. City of Hercules Response: The City agrees with this finding. Currently the City of Hercules Miscellaneous employees contribute 4.5% of the 7% employee portion of CalPers retirement and Safety employees contribute the full 7% of the employee portion of CalPers retirement.
No recommendations for this finding
F7
Page 20
— Defined contribution retirement plans can be an effective way to limit both current and future retirement costs. City of Hercules Response: The City agrees with this finding.
No recommendations for this finding
F8
Page 20
— The Governor’s Pension Reform Plan offers a good strategic model for limiting future retirement costs for local governments. City of Hercules Response: The City agrees with this finding.
No recommendations for this finding