Posted on 02/19/2016 8:18:10 AM PST by SeekAndFind
Following an effort by Governor Jerry Brown's union-stacked Public Employment Relations Board (PERB) to nullify its 66 percent voter-approved public pension restructure, the San Diego City Council voted unanimously to appeal the PERB's ruling to the courts.
Facing impending municipal bankruptcy due to a $2.3 billion unfunded pension liability, San Diego City voters passed Proposition B by a two-thirds vote on June 5, 2012. The initiative amended the city charter to replace defined benefit pensions for all newly-hired city employees, except sworn police officers, with a 401-K type defined contribution plan that most private sector workers have.
Prop B is estimated to have provided fiscal year savings to the City of San Diego of $8.3 million in the 2013/2014 fiscal year, $141 million through 2018, and nearly $1.6 billion through 2040.
The city's near-death experience was caused by a 2002 union-led decision by the 13-member board of the San Diego City Employees' Retirement System to spike pension benefits for city employees. The vote and subsequent City Council rubber stamp gave the five union members of the pension board an average of $25,000 a year in extra retirement cash.
Even though the 5 union board members were eventually indicted for "secreting" the $1.4 billion cost, California's wildly pro-union laws prohibits reversing even a crooked pension spike. That is why Prop B only impacted the city's 2,000 hires since 2012.
Although government unions scream about the evils of income inequality, public employees across the nation traditionally have received total compensation packages 25 to 46 percent higher than private employees with comparable skills and experience. Although the salaries of public employees are usually comparable to those of private sector employees, the health care and pension benefits received by public employees are far costlier than those provided to private employees.
(Excerpt) Read more at breitbart.com ...
I hate to see this. San Diego is run by Republicans and has been for decades. We are the ones that are supposed to be the best in money management. The Governor has overview but the cities run themselves. I know that many are blaming Ferguson and Flint on the governors but the real problem are the local city council and mayors. if we were all honest (liberals) then that would be the story.
I worked for a PEU in CA. They do not care at all how much the taxpayers are hurt paying for their benefits, nor do they worry about local governments or even the state going bankrupt as they believe they will be bailed out.
“...but the real problem are the local city council and managers...”
There’s alot of Progressive, psychotic energy running around local governments and councils and it has nothing to do with creativity or positive energy.
It’s the precursor of authoritarian impulses that will be made the rule of law as the impusles turn into a brick wall against sanity.
IMHO
The math never worked.
Imagine if the stock market drops another 30% - and stays down for a couple years?
Municipalities, States and Union pension funds across the country will face DISASTER.
I hope it happens!
The wave of the future. I wonder if all the Detroit govt employees who saw their pensions slashed would have preferred this instead. You would be hard pressed to find defined benefit pensions in the private sector, other than huge unionized corps.
The defined contribution model should be applied to social security as well. It would probably have to be implemented the same way, starting with those just beginning to pay into it.
Why "except sworn police officers?" Why not all of them?
Vote to take Alaska’s money.
They have $51,000,000,000 that the poor Democrat politicians haven’t been able to steal.....................yet.
Overpromising always end badly.
Also happening in KC and likely coming soon to IL.
Teamster retirees fight massive pension cuts at Kansas City town hall, warn others at risk
The Central States Pension Fund has proposed cuts of 50 percent or more to many retirees
It’s the first proposal to use a controversial 2014 law to cut current benefits severely in hopes of avoiding the fund’s collapse
Read more here: http://www.kansascity.com/news/business/article60760061.html#storylink=cpy
I wonder if rescission of the pension contracts for fraud or conflict of interest could apply? Has this even been tested?
Hahahaha. Watching the fruits&nuts squirm is quite entertaining.
Although I share your resentment of damn gov’t worker entitlements, we have to be careful what we wish for.
Public employees and their unions are first in line at the taxpayer funded gravy train.
The Millions of federal, state and local Gov’t employees are loyal Democrat members of Obola’s national civil army.
They will never be outright denied “promised” benefits, no matter how unsustainable or dire our economic circumstances are.
You, the taxpayer, will be bent over even further, and be given a good drilling by the SEIU-DEMOCRAT marxists.
It’s been decades since there’s been any widespread public mention of how taxes are killing the middle class.
As point of fact, during the 30’s depression, public employees voluntarily took 25% pay cuts in order to easy the burden of their unemployed neighbors.
Today’s gov’t vampires and parasites have no empathy for the people who are saddled with paying for their salaries.
RE: “Imagine if the stock market drops another 30% - and stays down for a couple years?
Municipalities, States and Union pension funds across the country will face DISASTER.
I hope it happens!”
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