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Supervisors continue debate on pension reforms; amendments, tabling and continuances set next steps

3005874 · April 16, 2025
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Summary

Board members debated competing charter amendments on pension changes, including 2-year versus 3-year final compensation averaging to limit so-called "spiking." The Board amended and continued measures and tabled a separate swap proposal; supervisors emphasized equity and budget impacts.

The Board held extended debate over proposed charter amendments to reduce employer retirement costs and change the calculation of final compensation for new hires. The discussion centered on two competing approaches: a two-year final-compensation average (advocated as a compromise by some supervisors and unions) versus a three-year average (advocated by others as producing substantially larger long-term savings).

Supervisor Marr (sponsor of an amendment) proposed deleting language that would have barred pickups of employee contributions for police, fire, and sheriff employees, to preserve equity across departments. That amendment was seconded and accepted; the Board continued Item 18 for one week to allow further work on amended language. Marr also moved to table Item 19 (a separate swap proposal that would have offered a one-time 7% wage increase in exchange for employees paying the 7.5% retirement pickup); that motion to table was seconded and carried without recorded objection.

Supervisor Ellsberg (proponent of a three-year averaging approach) argued the 3-year formula would generate significantly larger savings over time and urged colleagues to "think differently" about long-term fiscal effects. Ellsberg said the three-year option could save hundreds of millions more than the two-year approach over a 25-year horizon. Supervisor Marr and others emphasized equity: that current employees would not see retroactive reductions and that compromises should protect lower-paid workers who have already made concessions.

Public commenters included labor representatives and city employees. Bob Muscat, chair of the Public Employee Committee of the Labor Council, supported a two-year compromise and warned against larger givebacks; he said unions negotiated a less-costly package that he estimated would save about $425 million (vs. larger numbers cited by other proposals). Other public speakers urged protection for lower-paid city employees and criticized broad three-year changes as overbroad.

The Board continued Item 17 and Item 18 to a date one week later so supervisors could further evaluate the differences between the proposals and consult stakeholders. Item 19 was tabled at the Board's request. No final charter amendment was adopted at this meeting.

Ending

Supervisors said they would continue deliberations next week; the transcript records amendments, votes to continue, and a motion to table an alternative swap measure. Public comment emphasized protecting lower-paid workers and the need for transparency about projected savings.