Proposed with the 2017/2018 South Lake Tahoe City budget are innovative changes to management compensation as proposed by City Manager, Nancy Kerry and agreed to by all non-represented employees of the City. As reported in this article, Kerry states CalPERs “intends to extract 25% of the City’s revenues within the next five years,” and yet the City still needs to compensate its employees in fair and competitive manner.
Kerry first proposed similar changes to her compensation by reducing the pensionable amount and directing a portion to a 457 retirement plan(similar to 401k). With the adoption of a similar compensation plan for non-represented employees, the City of South Lake Tahoe is one of a handful of cities addressing pension by working with employees to develop creative solutions to maintaining attractive compensation while reducing pension costs.