Recently in Pensions Category

Union worker not happy with councilman's position on compensation reform

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Earlier this week Ventura City Councilman Neal Andrews penned an opinion piece about the scandal in Bell and the problem with public employee over-compensation.

A 33-year public employee responded in an editorial of his own, writing that Andrews "tarnished" public employees.

He insults all hard-working municipal employees when he suggests that the corruption of top officials in the city of Bell is even remotely associated with the struggles of public sector union members to maintain livable wages and modest pensions.

OK, "livable wages" is a total BS phrase, as if the author is going to starve to death if he gets a 7 percent pay cut. He may have to give up some comforts, but his wage not being livable? Come on. But it gets worse from here.

But, the salaries and benefits of Ventura employees are already below the labor market, and Andrews knows this.

Wait a minute...the labor market (in this sense) is pretty much defined as what other cities are paying for the same work, correct? But the author JUST SAID that overcompensation in cities like Bell is not relevant. It almost sounds like the author wants to take into consideration what other cities are paying employees when it benefits him, and conveniently ignoring that when it doesn't!

What is often overlooked in all the political posturing is that the recent increases in pension costs are not the result of benefit increases. They are the fallout of the market crash of 2008-09 from which the California Public Employees' Retirement System (CalPERS) and other public pension funds are still recovering.

Andrews should be advocating stricter regulations of Wall Street financial institutions that damaged our economy rather than scape-goating public employees, who, like the vast majority of American workers, are struggling to make ends meet.

Like the vast majority of American workers? The vast majority of American workers do not have cushy defined benefit retirement plans. For you private sector workers that don't know what that is, defined benefit means that the taxpayers chip into the pension fund to make up for any loss in market value of their retirement investments. Does that sound like YOUR 401K?

No, that's only for spoiled public employees, not "the vast majority of American workers."

The councilman is confused. On the one hand, he states that "elected officials have a duty to the taxpayer to assure that what we pay is consistent with the labor market." But, he then proceeds to rail against "the error of leaders who argue that public agencies must offer pay equal to other cities to stay competitive." Which is it?

It's not Councilman Andrews that is confused. He says that elected officials have a duty to the taxpayer to pay public employees a wage that is consistent with the PRIVATE sector, not what other cities pay.

Of course, the author is a chapter president of SEIU, so maybe he has to say these things. I doubt by bringing his gripes to the public he'll engender much sympathy from regular Joe private sector workers. He certainly won't from this one.

Foy slammed for mentioning pension reform

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You would think that in light of the fact that cities in Ventura County are hard-hit by the Bell scandal the public employees would give a guy a break for mentioning pension reform.

Ventura County Supervisor Peter Foy was lambasted Tuesday for his proposal to submit future public pension increases (except COLA adjustments) to the voters. Not only did the proposal fail to even get seconded, Foy was subjected to a hail of criticism.

A public employee union attorney said the bill was poorly written and that Foy was derelict in his duty if he couldn't make decisions on his own. A senior county planner echoed that sentiment, saying that Foy abdicated his responsibilities as an elected official.

Just so that I understand correctly: seeking the voters' input is an abdication of an official's responsibility? Keeping the voters in mind IS their responsibility!

Another public employee said that Foy's proposal does nothing to address the "real" problems in Ventura County, as if the supervisor hallucinated that the pension fund costs the county $2.5 billion.

Supervisor Steve Bennett was kind enough to make a PowerPoint presentation highlighting all the reasons why Foy's proposal is unworkable.

Of course, the public beatdown of Supervisor Foy is the exact reason why we have out of control pensions in the first place--people are intimidated from even bringing it up. A simple 4-1 vote would have sufficed, but instead Foy had to be punished first.

Meanwhile, the county, state, and the country are pushed even closer to fiscal disaster.





Union member: letting voters decide pensions is waste of taxpayer money

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If Supervisor Peter Foy had his way, voters would have to approve any pension increase for county employees. According to one union member, having a say in the out-of-control pension system is a "waste":

"The voters voted for him to make this decision, and now he's going to put it back on the voters," she said. "I think it's a waste of taxpayer money."

That sounds like something the officials of Bell would say to a proposal to let the public decide if they should get a salary increase. Does the union member think that putting that on the ballot would lose Bell money? Hardly.

A major problem of pensions is that they are constructed as defined benefit pensions rather than defined contributions. If a pension is supposed to earn 8 percent annually, for example, and the stock market tanks, the taxpayer is on the hook for that 8 percent increase.

Does that sound like your pension, oh you of the private sector? That system is bleeding our government dry of public funds. 

While I'm not convinced that voters won't fall under the same union spell that's placed California on the verge of bankruptcy (e.g. fattening education workers' wallets to "help our kids"), it's a step in the right direction.

With Simi and Ventura seemingly stuck with paying partially for the retirement of the Bell officials, that experience hopefully will spur local interest in general pension reform proposals like that of Supervisor Foy's.
IngeMusings
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This blog attempts to add perspective and context to local and national politics, through a variety of disciplines, such as history, economics, and philosophy--all tempered with common sense. About the author

Eric Ingemunson's commentary has been featured on Hannity, CNN, NBC, Inside Edition, and KFI's The John and Ken Show. Eric was born and raised in Ventura County and currently resides in Moorpark. He earned a master's degree in Public Policy and Administration from California Lutheran University. As a conservative, Eric supports smaller government, less taxation, more individual freedom, the rule of law, and a strict adherence to the Constitution.
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