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发帖数: 320 | 1 Pete Constant, retired police officer and union board member, argues for
pension reform
By JONDI GUMZ - Santa Cruz Sentinelsantacruzsentinel.com
Posted: 04/20/2012 08:38:32 PM PDT
April 21, 2012 3:43 AM GMTUpdated: 04/20/2012 08:41:31 PM PDT
SANTA CRUZ - San Jose City Councilman Pete Constant, a Republican, retired
police officer and union board member, came to Santa Cruz on Friday at the
invitation of the California Senior Alliance to explain why he's pushing
pension reform.
The Cocoanut Grove luncheon was funded by the late Bob Suhr, longtime Santa
Cruz County resident and pension reform advocate.
Constant did the math for the more than 100 people in attendance. San Jose,
with a general fund budget of $1 billion, has $2 billion of unfunded pension
costs and $2 billion of unfunded healthcare retiree costs.
"What's owed today, is $4 billion, four times our annual general fund budget
," he said, describing it as a burden for "my children" and "their children."
He said city pension contributions are equal to 52 percent of payroll.
Adding the employee share brings it to 65 percent, and in his view anything
over 34 percent requires action.
He said the city will have to write a check July 1 for pensions and retiree
benefits for $251 million, up from $73 million a decade ago.
"Our unions did everything right, they fought for higher benefits," he said.
"But the mayors and city councils screwed up. They just said OK without
understanding the longer liability."
A decade ago, a San Jose police officer made $72,000, with an 80 percent
pension of $58,000. A year ago, pay was $118,000, with a 90 percent pension
of $106,000.
"Anyone expecting a guaranteed 3 percent compounded cost of living increase
every year?" Constant asked.
That's what retired city workers get.
Constant said he cut his pay 13 percent and proposed to eliminate lifetime
pensions for council members "to lead by example."
Voters will decide June 5 on a pension overhaul he helped craft.
"When would you like to pay the price?" he tells city workers. "Now while
you're working and can deal with the problem or when you're 80 and you need
the money the most?"
Afterward, Watsonville City Councilman Lowell Hurst said he wants to know
what happened to the money municipal employees invested that evaporated in
the crash.
Scotts Valley Mayor Donna Lind, a retired police officer, said Scotts Valley
police agreed to reopen negotiations to discuss pension reform for new
hires.
"The issue isn't going away," she said.
Former city finance director Jack Dilles said he was impressed by the
argument that pension reform now will benefit employees.
"It's easier to solve now than later," he said. |
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