City employees to pay more into pension fund; record set for council election race spending

Two topics merit ink this week: a new two-year agreement with nearly 100 city workers continues to increase the dollars employees contribute to their pension plans, and a record has been set for spending by political action committees in City Council elections.

For several years – through June 2013 – both the employer and employee portions of pay-ments to the state Public Employees Retirement System for full-time, permanent city employees were paid by the city as part of negotiated compensation.

But beginning July 2013, employees started contributing 2.5 percent of salary for pensions, a figure that jumped another 2.5 percent to 5 percent beginning July 2014. Payments will increase another 1 percent this July and 1 percent again July 2016, for a 7 percent total.

The city will continue picking up the remainder of the required contributions, which can vary yearly, based on investment return, actuarial assumptions and other factors, currently about 20 percent of salaries.

Most employees are labeled “classic members,” since they were hired before Jan. 1, 2013. Workers hired after that date who are not already plan members fall under the Pension Reform Act of 2013, which sets specific contribution levels for public employees.

However, Yorba Linda workers won't be taking home less money due to the increased contributions, since they're getting a 3 percent pay boost retroactive to Oct. 1, 2014, and another 1.5 percent hike this Oct. 1, under agreements recently approved by the council.

Most employees also are receiving an increase to $1,130 monthly, retroactive to Jan. 1, in a “cafeteria plan” benefit for health insurance premiums, with any residual amount received as cash or deferred compensation, a figure that jumps to $1,165 monthly next Jan. 1.

The agreements apply to 69 miscellaneous employees, 21 mid-management workers and six managers and include dental, vision and life insurance, vacation buybacks, bilingual pay, sick leave and 12 annual holidays, among other benefits.

Last year's busy election season, with recall and regular council elections a month apart, drew a record number of dollars spent for candidates and causes by two dueling political action committees, based on state-required reports filed by a Jan. 31 deadline.

Biggest spender was the relatively new Residents for a Better Yorba Linda, with $73,569 to oppose the recall of Tom Lindsey and Craig Young in October and support winners Lindsey and Peggy Huang in November. The group raised $58,137 in cash, including developer do-nations, and noted $15,726 in “unpaid bills.”

The 10-year-old Yorba Linda Residents for Responsible Representation initiated the recall drive and supported runners-up Jeff Decker and Judy Murray on the November ballot with $49,794, raised from cash contributions, loans and donated goods.

Add the dollars raised by candidates and the total spent in 2014 was more than $230,000.