City adopts two-tiered pension plan for police
On a 5-0 vote at its March 2 meeting, the Scotts Valley City Council approved a plan suggested by the Scotts Valley Police Officers Association that introduced a two-tiered pension plan for department employees, to ease the financial strain on the cash-strapped city.
Under the new plan, all new hires will be enrolled in a pension plan of 3 percent at the age of 55. Those employed before the new plan took effect will not see their pensions reduced.
The older arrangement with the city, in comparison, called for employees of the Scotts Valley Police Department retiring after five or more years of service to be eligible for a pension at age 50 equal to 3 percent of his or her highest single working year’s salary multiplied by the number of years of service upon retirement.
City Council members lauded the police bargaining groups for presenting the plan, especially as their contract with the city did not need to be renegotiated until next year.
“It’s a needed step, and it’s an appreciated step,” said Vice Mayor Randy Johnson. “It bodes well for the future on so many levels.”
“It’s so much more appreciated because it’s something (the association) didn’t have to do,” added Councilman Jim Reed.
To illustrate the eventual savings to the city as the new pension arrangement gradually takes effect, City Manager Steve Ando estimated that if all present police department employees were on the new plan, the city would save about $52,000 annually.
Longtime recreation leader announces retirement
Also at the meeting, Recreation Division Manager Conrad Sudduth announced that he would step down from the position he has held for 18 years.
During Sudduth’s time working for the city, he has overseen the growth of Skypark, the skate park, the dog park and the annual Fourth of July fireworks celebration.
He said he planned to retire in May.