The Simi Valley City Council on Monday approved a revised labor contract with the city's Police Officers' Association, which extends a 3.43 percent salary reduction for three years.

Police officers agreed to a pay cut in July 2009, but it was set to expire Dec. 31. The new deal now runs to June 30, 2013. It was ratified by the association Thursday.

The terms apply to sworn police officers and sergeants.

The revised contract also modifies provisions regarding specialty assignments, and contains revisions to retiree dental and vision benefits. It also calls for discussions between the city and the association regarding California Public Employees' Retirement System contributions by newly hired employees.

The city said the revised contract is a reflection of the struggling economy and the need to cut labor costs while maintaining the maximum possible level of law enforcement services.

"The City Council is pleased to have come together with the Simi Valley Police Officers' Association on an agreement that will provide immediate costs savings for the benefit of the community," Mayor Paul Miller said in a statement. "The City Council appreciates our dedicated and hard-working law enforcement personnel and thanks them for their understanding of the difficult economic climate."