Council votes to eliminate terminal leave benefit

By City News Service

The City Council voted unanimously Tuesday to eliminate a benefit that enabled retiring San Diego employees to stay on the payroll until their accrued vacation time was used up.

The move is expected to save the city $120,000 to $1 million annually.

The so-called terminal leave benefit permitted city employees, when they retire, to stay on the payroll until their unused vacation days were used up.

During that period, retirees continued to collect health benefits, are paid for holidays and the length of their employment service, which is used to calculate

pensions, is extended.

The city’s employee unions agreed to get rid of the benefit during negotiations last year.

“This is a good step forward for taxpayers to save a little money,” said Councilman Carl DeMaio.

Eliminating the benefit is one of 10 financial and pension reform benchmarks that must be met before a proposed half-cent sales tax hike — if approved by San Diego voters in November under Proposition D — can take effect.