Proposition I: Retirement Benefits for Nurses and 911 Operators

Digest by the Ballot Simplification Committee

The Way It Is Now:

  • The City provides its employees with pension benefits through the San Francisco Employees' Retirement System (SFERS).
  • SFERS determines the pension payment a retiree receives under each plan through a calculation based on the employee's final compensation, years of service and age at retirement. That calculation varies between plans.
  • SFERS provides different plans for employees based on job type, including:
    • Miscellaneous Plans for 911 dispatchers and their supervisors and coordinators, as well as most other City employees;
    • Safety Plans for uniformed employees of the Police Department and Fire Department; and
    • A Miscellaneous Safety Plan for certain probation officers, District Attorney investigators and juvenile court counselors.
  • In general, retirees receive greater pension benefits under the Safety Plans and the Miscellaneous Safety Plan than they do under the Miscellaneous Plans. Although 911 dispatchers are classified as First Responders in California, they do not receive Safety-level retirement pensions.
  • City employees contribute a percentage of their salary toward their retirement benefits. In some circumstances, employees may also purchase service credits to increase their pension benefits.
  • A "per diem nurse" is a Registered Nurse employed by the City on an occasional and temporary basis. Since 1988, per diem nurses have not been members of SFERS and do not receive any pension service credit for the hours they work on a per diem basis.

The Proposal:

Proposition __ would:

  • Allow eligible Registered Nurses to purchase service credit for hours they worked on a per diem basis. Registered Nurses who are or become members of SFERS and have worked an average of 32 hours or more per week for at least one year could purchase up to three years of service credit for time they previously worked solely as per diem nurses for the City before they became members of SFERS.
  • Move 911 dispatchers, supervisors and coordinators from the Miscellaneous Plans to the Miscellaneous Safety Plan for compensation those employees earn on and after January 4, 2025. As members of the Miscellaneous Safety Plan, these employees would be required to pay an increased amount into the pension plan and would receive increased pension benefits at retirement.

What Your Vote Means:

  • A "YES" Vote: You want to allow Registered Nurses who are members of the San Francisco Employees' Retirement System and meet certain requirements to purchase credits toward their total pension years of service for time previously worked as per diem nurses, and to allow 911 dispatchers, supervisors and coordinators to increase their pension benefits by joining the SFERS Miscellaneous Safety Plan for time worked starting in January 2025.
  • A "NO" Vote: You do not want to make these changes.

How We Fund This

  1. The proposed Charter amendment would significantly impact government costs, increasing them by $3.8 million to $6.7 million annually in the first year, with costs rising over time.

  2. Registered nurses in SFERS-eligible job classifications would be allowed to purchase up to three years of retirement service credit for time worked as per diem nurses, potentially costing the City $1.5 million to $4.4 million annually in increased retirement contributions.

  3. The amendment would move 911 dispatchers, supervisors, and coordinators from miscellaneous retirement plans to the miscellaneous safety retirement plan, effective January 4, 2025.

  4. The estimated annual cost for the 911 dispatcher change is approximately $2.3 million starting in FY 2025-26, affecting about 175 employees and potentially increasing each year.

  5. While the amendment may encourage 911 dispatchers to work longer, potentially deferring new hire costs ($225,000 to $235,000 per dispatcher), the overall financial impact cannot be accurately predicted at this time.