Reform 4.15: Downsizing and Competition

Achieve Pension Savings from Downsizing and Managed Competition.

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Fiscal reforms implemented to balance the FY 12 budget will also pay dividends when it comes to the city’s long-term pension costs. To capture those savings, we obtained an actuarial analysis of the impact of a reduction-in-force for the general membership group of employees. Given the City’s apparent forthcoming efforts to subject functions to managed competition, as well as the City’s legal ability to directly outsource service functions outside of the process set forth in the Managed Competition Guide 22,23 , the impact to the City’s annual pension payment from reducing the number of employees is important to understand and quantify. The impact of 10%, 20% and 30% reductions-in-force, each equally phased-in over three years, is displayed in the tables at the end of this section. This reduction in force only applies to non-public safety members, and is intended to show the impact that the City can expect to its pension payment from various degrees of workforce downsizing.

Indicator(s):

Indicator:1

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