Watch For Increases to Wages, Pension Contributions

Last year, Local 21 members ratified a new contract with a full 4.62% salary restoration and end to furlough days, the first scheduled wage increases since 2008, two additional 1-time paid floating holidays, and other improvements.

Separate from our contract negotiations was the 2011 voter-approved Prop. C, which was designed to save the City $1.3 billion over the next decade, strengthen our pension plan, minimize layoffs, and protect services during and beyond the recession. Prop. C mandated that employee and employer pension contributions would temporarily increase in years when the plan was underfunded, and decrease in years when the retirement plan was doing well. The charter amendment also ended the employers’ ability to skip making their annual contributions. Seeing fixed benefit pension plans disappear in the private sector and come under political attack in the public sector, these changes were agreed to by Local 21 and the PEC to ensure the long-term health and sustainability of the plan. 

As part of Prop. C, we began contributing 10-10.5% (10% for employees earning $24.01-$47.99/hr, and 10.5% for employees earning $48/hr or more) this fiscal year toward our pensions, and this coming year, as predicted, that rate increases to 11-11.5% depending on your salary. While our contribution is temporarily going up by 1%, the City’s contribution is going up 3.11%, we have a 1% wage increase to offset our increase. Our rates are expected to begin declining in FY 15-16 when SFERS begins to recover its losses from the 2008 economic crash. 

This July we see both our first wage increases and new contribution levels per Prop. C:

  • July 1, 2013: 1% Salary increase

  • July 1, 2013: 1% Increase in pension contribution, per voter approved Prop. C

  • January 4, 2014: 1% Salary increase

  • March 29, 2014: 1% Salary increase

Want more info? Download our contract at In January 2013 we’ll begin contract negotiations, which will include wage and benefit discussions.