The city of Sacramento could save millions of dollars every year by requiring its public safety employees and top management officials to contribute to their retirement funds, an auditor has found.
A report released today by city Auditor Jorge Oseguera shows the savings could reach $7.4 million a year should police officers, firefighters and managers contribute 4 percent of their salaries into the CalPERS system.
Those employees currently do not pay anything out of pocket toward their retirements. Most other city workers contribute 4 percent of their salaries toward their pensions.
With the city facing a $40 million deficit in the upcoming fiscal year, rising pension costs have begun to significantly impact City Hall's bottom line. The city paid $44.6 million into the CalPERS system during the 2009/10 fiscal year, up from $29.1 million just five years prior.
The auditor's report also found discrepancies in the contributions made by the city toward retired firefighters' health insurance programs, compared to what other former employees receive.
The city pays $634 a month in health insurance premiums for retired firefighters who had more than 20 years of service.
For other retired city workers with at least one dependent, the city pays $365 a month.
The auditor's full report can be found on his website.