Menlo Park city staff is recommending that the City Council impose the "last, best, and final" office made to Service Employees' International Union, which represents 152 benefited non-management employees with the city of Menlo Park.
The last offer includes no pay increases, and could require employees to pay more for health insurance and pension costs, similar to what the city negotiated in the fall with the union that represents middle management employees.
The offer would allow the city to implement a pension plan for new employees that would increase the retirement age from 55 to 60 for non-police municipal workers. It would also change the formula for calculating pension benefits, from 2.7 percent of highest annual salary multiplied by years of service to 2 percent of an average of the three highest years, multiplied by years of service.
The new pension formula would not go into effect until the two unions that represent other city employees agree to the plan, or until the city imposes it upon them, according to the staff report.
The new pension formula is similar to one proposed by a group of residents aiming to launch a ballot initiative that would scale back public pensions. Unlike that group's proposal, however, the city's plan would not prevent the council from increasing benefits in the future without a vote of the people.