Supervisor Ellsberg unveils broad pension and retiree-health charter amendment

Supervisor Ellsberg introduced a charter amendment on May 24 that would reshape San Francisco’s pension and retiree-health provisions, proposing immediate and near-term savings, a new employee tier, mandatory employee contributions to retiree-health funding, and changes to Health Service Board composition.

Ellsberg told the Board the approach is comprehensive and will require contributions from current employees rather than limiting changes to future hires. He characterized the measure as producing savings in the first year after passage and said it would preserve an equitable "float" so employees share in contribution reductions during good investment years and increases in lean years.

Specific features Ellsberg cited include: a new tier for employees, reforms affecting more than 1,000 employees currently in CalPERS, a change to vesting rules for retirement annuities, mandated employee contributions to the Retiree Health Trust for current workers, and a reconstitution of the Health Service Board to improve oversight of retiree-health costs. Ellsberg said Controller estimates show the package would save between $800,000,000 and $1,000,000,000 over 10 years and urged further cosponsorship from board colleagues and continued negotiations with labor partners.

Ellsberg credited Mayor's involvement, Department of Human Resources staff and private backers, and said the measure was intended to generate broad consensus ahead of a likely public vote. Several supervisors in the chamber praised the effort during introductions; Supervisor Avalos and Supervisor Weiner publicly thanked Ellsberg for long-running attention to pension issues. No formal Board vote on this charter amendment occurred at the May 24 meeting; Ellsberg said he anticipated further hearings and outreach before placement on a ballot.