Rules committee amends and continues firefighters retirement charter measure after fiscal concerns

The Rules Committee on July 15, 2024 considered a charter amendment proposing to lower the retirement age for certain San Francisco Fire Department members from 58 to 55 and to change how final compensation is calculated for pension purposes. Chair Supervisor Hillary Ronan said she would seek an amendment to remove the provision that would allow final compensation to be calculated based on a single final year of pay — a change critics call a pathway to “pension spiking.”

Ronan said the city faces a substantial budget deficit and that removing the one‑year averaging provision would reduce the measure’s cost by roughly half. Janice Levy, the Controller’s Office analyst, cited figures indicating the measure’s lowest projected annual cost could be about $9.2 million and that deleting the final‑compensation change would lower first‑year costs by about $5.5 million. Ronan moved to amend the measure to remove the one‑year final‑compensation provision and to continue the item to the July 22 Rules Committee meeting so sponsors could incorporate the change while still allowing the measure to be placed on the ballot as a late amendment.

Supporters of the measure, including representatives of Firefighters Local 798, framed the paired changes — lowering retirement age and changing the smoothing period for final compensation — as safety measures. Adam Wood, secretary of Local 798 and vice president of the Cancer Prevention Foundation, said the one‑year smoothing was requested by firefighters to reduce incentives for members to stay on the job longer after receiving late‑career promotions or raises, and that the two changes together were designed to encourage earlier retirements given elevated cancer risks among firefighters: “There was no intention for pension spiking. It was just to help save firefighter lives.” Floyd Rollins, president of Local 798, told the committee the union sought to reduce deaths and illnesses tied to occupational exposures.

San Francisco Fire Chief Janine Nicholson told the committee she had observed instances where position changes late in an employee’s career led to higher pension calculations and increased use of sick time in ways that affected departmental operations, but she said she did not have precise numbers at the hearing.

After debate, Ronan’s motion to amend (removing the final compensation change) and continue the matter to July 22 passed in committee with Vice Chair Walton voting yes, Supervisor Safai voting no and Chair Ronan voting yes (committee tally 2–1). The measure will return to Rules for consideration with the proposed amendment and updated fiscal information.

Next steps: The item is continued to the July 22 Rules Committee meeting to allow sponsors and staff to incorporate the amendment, update fiscal estimates, and return the revised language for committee consideration.