By Brian Rokos
The Press Enterprise
NORCO, Calif. — At a time when Norco is trying to eliminate $3 million in spending to balance its budget by July 1, the city will have to come up with about $282,000 to pay into the retirement system for some public safety employees.
Deputy City Manager Andy Okoro said the figure is an actuary’s estimate and that the city will have to pay the amount for 20 years, for a total of about $5,640,000.
According to a 2007 memorandum of understanding with firefighters, their retirement benefit will change from “2 at 50" to “3 at 50" on June 30. If they retire at age 50, the 23 employees covered will receive 3 percent of their highest salary for every year they worked, instead of 2 percent.
Asked how Norco planned to fund the increased California Public Employees Retirement System contribution during a budget-cutting mode, City Manager Beth Groves wrote in an email: “There is a specific PERS process required by law to implement the benefit. You will see that process begin within the next 30 days with agendized council actions.”
Councilman Harvey Sullivan, who was on the council in 2007 when that memorandum was signed, said Friday “We’re in negotiations with the (firefighters) association and we’ve been asked not to comment on any of those issues that haven’t been decided yet.”
Frank Hall was also on the council when that agreement was signed in 2007.
He said Friday that the city agreed to the increased contribution to be able to keep and hire quality firefighters at a time when other cities and agencies had agreed to the 3 at 50 deal.
“We agreed to it only because the feeling was we’d have to agree to it at a later date because that would be the standard,” Hall said. “We felt it was kind of a win for the city to put it off for awhile (until 2011) and not immediately adopt it.”
Hall said the 3 at 50 benefit was the last hurdle in securing a contract with the firefighters.
Ron Laursen, president of the Norco Firefighters Association, did not return calls seeking comment on negotiations.
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