The Way It Is Now:

• The City provides its employees with pension benefits through the San Francisco Employees' Retirement System (SFERS).
• Employees who meet age and service requirements receive pension payments upon retirement.
• Members of the Fire Department are eligible to retire at age 50 if they have at least five years of credit for City service.
• A member's pension generally increases with the member's age, compensation and number of years worked.
• The pension is a percentage of the member's final compensation at retirement.
• SFERS calculates that percentage based on the member's age at retirement and their number of years of City service.
• No member of the Fire Department may receive a pension that is more than 90% of their final compensation.
• Members of the Fire Department hired before January 7, 2012, could reach the 90% maximum percentage for their pension at age 55.
• Members hired on or after January 7, 2012, could reach that maximum three years later, at age 58.

The Proposal:

Proposition __ would amend the Charter to:

• Change pension benefits for members of the Fire Department hired on or after January 7, 2012.
• Lower from 58 to 55 the age at which these members can obtain the highest pension based on age.
• Make pension benefits for members hired on and after January 7, 2012, the same as benefits for members hired before January 7, 2012.

What Your Vote Means:

• A "YES" Vote: You want to amend the Charter to change how pension benefits are calculated for members of the Fire Department hired on or after January 7, 2012, by lowering the age these members can receive the highest pension from 58 to 55, and make those benefits the same as members hired before January 7, 2012.
• A "NO" Vote: You do not want to make these changes.

1. The proposed Charter amendment, if approved, would significantly impact government costs, starting at approximately $3.7 million in fiscal year 2025-26 and increasing annually through 2040-2041.

2. The amendment aims to align retirement benefit calculations for firefighters hired after January 7, 2012, with those hired before that date, allowing for higher retirement benefits at younger ages.

3. For firefighters hired before January 7, 2012, the age for receiving the highest potential pension would be lowered from 58 to 55.

4. The estimated costs do not include potential expenses for hiring new firefighters to replace those who may retire earlier due to the new incentives. The current cost to hire and train a new firefighter is approximately $115,000.

5. This Charter amendment would modify voter-approved pension reform measures from June 2010 and November 2011.