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San Diego City Employees pension fund ailing
Hey JF, Let's assume you're correct about the monikers. With a growing number of free WiFi all around these days and a laptop computer, an IP address is not the most reliable method of tracking duplication. There is a solution, I'd suggest tracking the NIC's MAC address. It's allegedly unique to every device. Best, JW— February 26, 2009 9:40 a.m.
San Diego City Employees pension fund ailing
Hey JV according to President Obama the sky is not falling. It's just cloudy....with a chance of thunderstorms for the next 3 years.— February 24, 2009 12:16 p.m.
San Diego City Employees pension fund ailing
Come on John, You've got to be kidding... How many politician have taken money from groups, made promises and then conveniently forgot them. I'll give you another for instance... Those represented by MEA and Local 127 (mainly blue collar) were considering a work stoppage last year when talks were going badly. The Mayor and his staff were so concerned they developed contingencies using law enforcement to cross lines.— February 23, 2009 5:26 p.m.
San Diego City Employees pension fund ailing
Don, I believe you're wrong on the union power issue and we can agree to disagree. As you know withholding labor, or striking, is the biggest hammer. Public Safety workers in San Diego cannot go on a strike.— February 21, 2009 12:48 p.m.
SDCERS Lowers DROP Interest Rate to 3.54 Percent, Says DeMaio
Johnny, So glad you're keeping up-date. The DROP program was stopped in 2005 or 2007 for new employees. The date issue depends on who's interpretation of the rule of law you want to subscribe to. That controversy was caused by the previous City Attorney. The SDCERS board changed the rules regarding the PoSC on January 23, 2009, making it "cost neutral", whatever that means. But I do agree with you it should be done away with except for the one exception.— February 21, 2009 12:43 p.m.
SDCERS Lowers DROP Interest Rate to 3.54 Percent, Says DeMaio
Regarding PSCs, I agree the methodology used to calculate the cost to purchase service credits was flawed. But, as of January 23, 2009, any new purchase will be calculated using several factors which were not used in the past. I, like JF, believe they should have never been allowed except for their original intent, to correct continuous service time when city employees were recalled by the Gov't for other services.— February 20, 2009 5:57 p.m.
SDCERS Lowers DROP Interest Rate to 3.54 Percent, Says DeMaio
OK here's the data on the new interest crediting rates voted on today and effective July 1, 2009. For active DROP accounts the rate is 3.54% down from 7.75% For DROP Annuity accounts the rate is 5% down from 7.75% Here is the logic adopted by the Board. DROP active accounts should be consider a short term no risk deposit. So they tied it to a blend of the 12 month averages of three indexes. 1. 5-Year Treasuries rates 2. 5-Year IRA CD rates 3. 5-Year High Quality Corporate Bonds as reported on the IRS website. Two of the indexes are weighted at 100% the other index, the 5-Year HQ Corporate Bonds is weighted at 50%. Using the period from Feb 08 through Jan 09 of these indicies returns a rate of 3.54%. The same method was used for calculating the Annuity Rate of Return except one new index was used. 1. 20 year PBGC "immediate" annuity rate 2. 20 year Treasury Rate 3. 20 year High Quality Corporate Bond rate. The same 12 month time period and averaging method was applied, with the 20 year HQ bonds weighted at 50%. Using the period from Feb 08 through Jan 09 of these indicies returns a rate of 6.12%. However since the crediting rate IS NOT the assumed rate of return then SDMC ordinance overrides rate of return capping it at 5%. Obviously those nearing the end of the 5 Year DROP period, who are leaning toward selecting the DROP annuity program will, most likely choose to leave by June 30th to take advantage of the 7.75% annuity rate.— February 20, 2009 3:02 p.m.
San Diego City Employees pension fund ailing
Johnny, you said in #914 above; “Again, ther [sic] union is just as much at fault for not insisting the ballon [sic] payment be PAID. Not a one way street JW, sorry.” This is more of same troll commenting you done all along. It’s just like a previous comment this week, that the unions are fiduciaries of the pension fund. Your comments are typically inaccurate and designed to stir controversy. With that said, again, sure it’s easy to say they should have this or that…but please tell me EXACTLY HOW they could have “insisted”? City workers, specifically public safety employees are not allowed to strike. The main leverage of any organized labor group has over management is its ability to withhold labor services or strike. To illustrate my point lets look at Local 127, one of the City’s labor groups. They negotiated with the city in an attempt to make a two-way street as you suggested. They agreed to have more money withheld from their paychecks to shore up the pension’s underfunding. Part of the negotiation required a matching amount from the City. So what did the city do? They took the money, kept it for a year or so, then when the time came to make their matching contribution, it was …Oh, we can’t do that… we’ll give you back your money, but it’ll take us a little while to do it. Oh, and by the way, no interest on it. So, Mr. Vegas, I’ll ask again, how exactly does a union insist on anything? Heck even when they negotiate AND agree they go back on their promise.— February 20, 2009 2:54 p.m.
SDCERS Lowers DROP Interest Rate to 3.54 Percent, Says DeMaio
I suppose this is merely a matter of semantics, but to be as accurate as possible, when an employee enters the DROP program he or she is technically retired from the City. No additional SDCERS credits accumulate and the City no longer contributes to the employee's "Pension" account. The SD muni-code says in section 24.1401 "DROP is intended to be cost neutral." I would argue two points here. 1. The word "intended" is a far cry from "shall" and not even in the same ballpark as "MUST", legally speaking. (Blacks Law Dictionary) 2. The muni code is not clear as to WHO should be cost neutral, the City of SD, SDCERS, both? As with other issues of that era, the legal work is very sloppy. SDCERS Board Member, and former board President Peter Provolos said in today's meeting that "cost neutral" is a myth. The program is flawed and could not be cost neutral. Another board member added cost neutrality to whom? SDCERS or the City. Remember, the Boards actuarial, Gene Kalwarski, of Cheiron, only reports on SDCERS. Has there every been an independent study of the DROP program's cost neutrality to the City of San Diego? This raises another new issue. The Board voted to review the interest crediting rates each November and implement in January of the following year. To accomplish this they must adopt new board rules at next month's meeting. Proposition B, passed by the voters, REQUIRES a vote of the electorate, to enhance pension benefits. Here's a probable hypothetical. Inflation takes off a direct result of the STIMULUS plans... interest rates on the indexes SDCERS used to calculate the rates climbs too. November comes, and the Board set new crediting rates to match the rate of return. Is this NOW a pension benefit enhancement that requires a vote of the people to approve it? Oh what a tangled web we weave...— February 20, 2009 2:06 p.m.
San Diego City Employees pension fund ailing
OK here's the data on the new interest crediting rates voted on today and effective July 1, 2009. For active DROP accounts the rate is 3.54% down from 7.75% For DROP Annuity accounts the rate is 5% down from 7.75% Here is the logic adopted by the Board. DROP active accounts should be consider a short term no risk deposit. So they tied it to a blend of the 12 month averages of three indexes. 1. 5-Year Treasuries rates 2. 5-Year IRA CD rates 3. 5-Year High Quality Corporate Bonds as reported on the IRS website. Two of the indexes are weighted at 100% the other index, the 5-Year HQ Corporate Bonds is weighted at 50%. Using the period from Feb 08 through Jan 09 of these indicies returns a rate of 3.54%. The same method was used for calculating the Annuity Rate of Return except one new index was used. 1. 20 year PBGC "immediate" annuity rate 2. 20 year Treasury Rate 3. 20 year High Quality Corporate Bond rate. The same 12 month time period and averaging method was applied, with the 20 year HQ bonds weighted at 50%. Using the period from Feb 08 through Jan 09 of these indicies returns a rate of 6.12%. But in this instance the SDMC ordinance overrides rate of return capping it at 5%. Obviously those nearing the end of the 5 Year DROP period, who are leaning toward selecting the DROP annuity program will, most likely choose to leave by June 30th to take advantage of the 7.75% annuity rate.— February 20, 2009 12:23 p.m.