Foster City has rolled back pension benefits offered to new hires in the police and fire departments to levels not seen since before 1999.
Starting January, new public safety hires will be eligible to receive a 2 percent at 50 retirement benefit rather than the 3 percent at 50 it currently offers, making Foster City the first city in the Bay Area to reduce pension benefits for police and fire personnel to pre-1999 levels.
The move will save the city about $9 million or more over the next 30 years.
The council also voted last night to end another post-retirement benefit for new hires by eliminating a separate annuity available only to public safety employees called “longevity pay.”
That move will save the city an additional $3.4 million over the next 30 years, said Rebecca Burnside, the city’s human resources director.
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