As a whole, the two-year concessions deal could lead to about $2.7 million in savings during Fiscal 2010-11 and the next budget year.
San Bernardino's current budget is an attempt to solve a $24 million deficit. Officials assumed the police union would make concessions while drafting the budget.
In terms of officers' pay, the deal calls for union members pick up $400 in monthly medical costs and to forego a $950 per year uniform allowance.
The retirement changes are not expected to result in immediate. Morris, however, said the old pension system was unsustainable and heralded the new two-tiered retirements as a major development.
"This is a critical first step in a series of tough decisions that we must make as a city as we restrict our city's finances," the mayor said.
The retirement changes will require future San Bernardino police officers to work longer before they can max out their pension benefits.
The "3 at 50" formula, which current officers work under, allows an officer with thirty years of service to retire on 90 percent of their highest earnings upon reaching the age of 50.
The new "3 at 55" retirement plan will be given to future hires if the City Council ratifies the deal.
The council is scheduled to vote on the concessions during its Monday meeting.
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