Pension Reform
I've noted in a number of posts the ever increasing number of cities and counties concerned about the spiraling costs of defined benefit pension programs. Ventura County is the latest local agency to address the issue head on. Here is an excerpt from Tuesday's Los Angeles Times:
Alarmed by spiraling pension debt, Ventura County could join a growing number of local governments requiring that future increases in retirement benefits for public employees be put on the ballot.Voters in Orange County and the city of San Diego in recent years have stripped benefit-granting authority from their elected officials, reserving that power for the electorate. San Francisco has required voter approval of pension benefit hikes since its founding charter over a century ago.
The Ventura County Grand Jury recently recommended that voters there be given the same opportunity. Two members of the Board of Supervisors said they are willing to consider the proposal.
It goes on to note:
Grand Jury foreman Ron Zenone said the panel investigated pension costs because they account for a large portion of the county's general fund. Pension costs grew 327% over the last decade and are projected to increase 20% to 25% a year for several years.Ventura County is hardly alone. Eight years after granting one of the most lucrative pension plans in the state, San Diego County is trying to rein in costs by creating a tier of employees with lesser benefits. In February, the county's retirement fund had lost $2.5 billion, or about 30% of its value, as the stock market plunged. At that time, Dianne Jacob, chairwoman of the Board of Supervisors, said the county would have to increase its annual payment from $300 million to $700 million in five years.Riverside County government, too, is looking to trim benefit costs after granting costly enhancements, and the Bay Area city of Vallejo declared bankruptcy last year in part because of climbing retirement payments.
Read the full article by clicking here.
Alarmed by spiraling pension debt, Ventura County could join a growing number of local governments requiring that future increases in retirement benefits for public employees be put on the ballot.Voters in Orange County and the city of San Diego in recent years have stripped benefit-granting authority from their elected officials, reserving that power for the electorate. San Francisco has required voter approval of pension benefit hikes since its founding charter over a century ago.
The Ventura County Grand Jury recently recommended that voters there be given the same opportunity. Two members of the Board of Supervisors said they are willing to consider the proposal.
It goes on to note:
Grand Jury foreman Ron Zenone said the panel investigated pension costs because they account for a large portion of the county's general fund. Pension costs grew 327% over the last decade and are projected to increase 20% to 25% a year for several years.Ventura County is hardly alone. Eight years after granting one of the most lucrative pension plans in the state, San Diego County is trying to rein in costs by creating a tier of employees with lesser benefits. In February, the county's retirement fund had lost $2.5 billion, or about 30% of its value, as the stock market plunged. At that time, Dianne Jacob, chairwoman of the Board of Supervisors, said the county would have to increase its annual payment from $300 million to $700 million in five years.Riverside County government, too, is looking to trim benefit costs after granting costly enhancements, and the Bay Area city of Vallejo declared bankruptcy last year in part because of climbing retirement payments.
Read the full article by clicking here.
Labels: Pension
posted by City Manager @ 5:28 AM
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