The city of San Luis Obispo completed a year of negotiations on employee salary concessions by agreeing to a new contract with the Police Officers Association.

Police union representatives agreed to a four-year contract consisting of a 2 percent pay cut in January 2013 and another 2 percent cut in July 2014.

The Police Officers Association also agreed to a restructured pension system. Police officers will now pay 3 percent more in employee contributions to pensions costs, and the city will enact a two tier system such that new police hires will receive lower pensions.

Union representatives also agreed to forego cost of living increases for the remainder of the contract and to eliminate the uniform allowance officers receive.

By reaching a deal, the city and union ended an impasse declared in June, and the city completed negotiations with all of its employee groups. The city managed to achieve its goal of $3.1 million in employee salary reductions, a 6.8 percent cut in pay per worker.

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