Pasadena City Council to Review Member Compensation, Benefits

The Pasadena Committee on City Councilmembers’ Compensation will review councilmember compensation and benefits during a committee meeting Monday evening.

The Committee will examine monthly stipends, health benefits and retirement plans. The meeting is scheduled for 6 p.m. at City Hall.

The committee will also review comparative data on compensation from other cities.

Currently, councilmembers receive $1,941 per month, according to a memorandum prepared by Alex Souto, Deputy City Manager. The mayor receives $2,911 monthly.

Those amounts represent a 94% increase since 1999. The original stipends were $1,000 for councilmembers and $1,500 for the mayor.

The increases are tied to the Consumer Price Index for the Los Angeles area. Annual increases are capped at 5%.

From 2009 to 2013, the council waived annual increases due to financial difficulties from the Great Recession, the memo said. The cumulative waived increase was 5.6%.

In 2022 and 2023, inflation exceeded 5%. The council missed out on 1.97% in cumulative increases because of the cap.

Being a charter city, Pasadena is not bound by state compensation limits that apply to general law cities.

State law sets maximum monthly stipends for general law cities based on population. Cities with more than 250,000 residents can pay up to $3,200 monthly.

Councilmembers can choose between two retirement plans. They can join CalPERS or an alternate plan through Public Agency Retirement Services.

The memo said the city contributes 35.23% of monthly stipends to CalPERS. Members contribute 7.75%.

For health benefits, the city covers 100% of Blue Shield or Kaiser plans through CalPERS, the memo said. The monthly contribution is $828 for single coverage.

Councilmembers who decline city benefits receive a $400 monthly opt-out allowance.

The city also provides $200,000 in life insurance coverage and pays for dental enrollment.