Pension funds matched set

My matched set for today….

Here is the problem with all those generous public pension plans:

Marin County’s pension program is unsustainable, underfunded, imperils taxpayers and requires reform, especially in San Rafael, where the City Council ran up an $18.5 million tab by approving retroactive employee benefits and failed to fund them, the civil grand jury reported.

In the latest probe of the county’s costly pension program — the fourth such investigation juries have conducted in six years — the 2011 civil grand jury called for a host of changes, including “prohibiting any retroactive pension benefit increases that create an unfunded pension liability” like the San Rafael City Council did in 2004.

The jury, noting the city, Novato Fire District and several other agencies are part of the county system, said the City Council boosted benefits by allowing police to retire at age 55, with pensions amounting to 3 percent of salary for every year of service, rather than 2 percent at age 50. Most miscellaneous employees were allowed to retire at age 55 at 2.7 percent of salary for every year of service, rather than 2 percent at 58.5 years. An age 55 and 2 percent calculation applies to most miscellaneous employees at the Marin Civic Center, where county supervisors have set benefits lower.

[snip]

The problem with San Rafael’s retroactive benefit increase, the jury said, is that officials did not fund it, shifting the $18.5 million cost to future generations of taxpayers and creating “a generational equity issue.” The panel said the city, which had no unfunded pension liability in 2002, had $34 million in unfunded liability a year later, when calculated in light of the benefit increase and investment losses.

Today, San Rafael taxpayers face an unfunded pension liability alone of anywhere from $146 million to $479 million, depending on assumptions used — and not including the city’s unfunded cost of retiree health benefits. In San Rafael, pension costs amount to 50 percent of payroll, essentially meaning that for every dollar in employee pay, taxpayers chip in another 50 cents to cover the pension. San Rafael employees contribute at a rate of about 11 percent of payroll. At the Civic Center, taxpayer costs are 24 percent of payroll, and employee costs, 10 percent.

And here’s what happens to those politicians (this one a politician in San Francisco who tried to attend the funeral of two firefighters who died on duty) when they try to challenge this kind of community destroying canker:

Noticeably missing from San Francisco Mayor Ed Lee’s lengthy introduction of the city’s “official family” at Friday’s funeral of two firefighters was public defender and pension reform advocate Jeff Adachi.

That’s because Adachi, who had been standing with other dignitaries at the memorial outside of St. Mary’s Cathedral, was asked to leave before the service started.

[snip]

It’s no secret that Adachi’s efforts to force city workers into contributing more to their pension and health care benefits has made him persona non grata – especially among police and firefighters.

I’m willing to look at compromises, such as demanding lower contributions from employees who risk their lives (police officers or firefighters), than from those who don’t (teachers, clerks, etc). But something needs to be done across the board, because the public service sector is intent on killing the taxpayer goose that for so long has laid those golden eggs.