Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Watch Live

Sanders, Aguirre Offer Differing Pension Plans

Mayor Jerry Sanders hopes to cut San Diego's escalating pension costs by introducing a different kind of pension plan for future city employees. City Attorney Mike Aguirre says the city would save mor

Mayor Jerry Sanders hopes to cut San Diego's escalating pension costs by introducing a different kind of pension plan for future city employees. City Attorney Mike Aguirre says the city would save more money by going back and correcting mistakes by the pension board that have cost taxpayers millions. KPBS reporter Alison St John has more.

Sanders hopes the city's three labor unions will consider a two-tier pension system which would give city employees hired after 2009 a different kind of plan.

Advertisement
Sanders: Put quite simply, our existing retirement system is simply not sustainable over the long term, and that's why I'm proposing a retirement system that limits the taxpayers' liability.

Sanders says a defined contribution plan for new employees could save the city $25 million a year in future decades.

City Attorney Mike Aguirre says he has a better plan. He is suing the pension board for underestimating the cost of so-called service credits -- a mistake that has cost the San Diego taxpayer $146 million. 

Aguirre: If we get the support of the mayor and city council to simply, properly price the service credits, that will make more money than any proposal the mayor has made so far.

Aguirre's plan is still in the courts and Sanders' proposal is still at the negotiation stage with the city's three labor unions. 

Alison St John, KPBS News.