City employees to fund pensions?

MODESTO -- For the past 17 years, Modesto taxpayers have picked up the employees' share of pension contributions for city workers.

But city employees hired on or after Jan. 17 will have those costs deducted from their paychecks if the City Council formalizes a policy change today. Union groups agreed to the rollback in retirement benefits during negotiations.

Pension benefits for city employees are purchased from the California Public Employees' Retirement System. Standard formulas require most city workers to contribute 7 percent of their pay to retirement and public safety employees to contribute 9 percent, but taxpayers have covered up to 94 percent of those costs for workers in addition to funding the city's yearly contributions to CalPERS.

City leaders also may try to convince existing employees to pay their share for retirement benefits as new contracts are negotiated with unions.

The Modesto City Council meets at 5:30 p.m. today in the basement chamber of Tenth Street Place, at 1010 10th St.