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Tentative State Union Contract Includes Pension Concessions

  

The tentative three year contract with Professional Engineers in California Government would require members to pay 0.5 percent of their salary beginning in July of 2017 to help reduce the unfunded liability for retiree health care.

“It’s certainly very symbolic,” says Douglas Johnson with the Rose Institute of State and Local Government at Claremont McKenna College. He says the contribution is a small one, but could have significant ramifications for future contracts with other state unions.

“If the first of the larger unions accepts something like this, it will be an even bigger sign. But this is definitely a win for the Brown administration and a step in the right direction, if only a baby step.”

The engineers’ union’s tentative agreement includes a five percent salary increase in July 2016 and a two percent increase the following year.