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San Diego City Employees pension fund ailing
Response to post #168: Here's a question for you: do you know any college or university that has a major, or even a course, in firefighting? ----------------------------------------------------------------- San Diego Community Colleges via the Regional Public Safety Training Institute at Miramar College (http://www.sdmiramar.edu/index.asp), Southwestern, Grossmont, Palomar and Mira Costa Colleges offer Administration of Justice (Law Enforcement), Fire Sciences or degree programs in both. San Diego State University offers degrees in "Public Administration" geared more toward the management of Public Safety organizations.— January 7, 2009 7:15 a.m.
San Diego City Employees pension fund ailing
So Johnny, when City Attorney Goldsmith decides to drop the appeals by former City Attorney Aguirre's litigation is the case concluded with the ruling of the trial court and thus over without a "Final" judgment?— January 2, 2009 9:27 a.m.
San Diego City Employees pension fund ailing
Johnny I understand the City has a seven (7) year paving cycle, which is really a process called slurry sealing. A Slurry Seal is a cold mixed asphalt. It consists of a graded aggregate, a binder , and additives. It is a hard wearing surfacing for pavement preservation. Or more simple put it's the cheapest, or should I be politically correct, the most cost effective method of preserving the underlying roadway surface or bed. A true repaving or asphalt overlay is very expensive and required substantial roadway preparation, a lot more expense. This might be part of the explanation regarding the poor and deteriorating condition of San Diego's road network... But I've digressed from the original intent of DON's story. The bottom line in San Diego: It's expensive to live here. Taxes are much lower compared to similar cities across California and the nation. The politicians here are hacks and have no business running a multi-billion dollar municipal corporation. The electorate are sheep. And the people's watchdog, the media, has grown old and frail without any real teeth.— January 1, 2009 7:55 p.m.
San Diego City Employees pension fund ailing
Don you're right.... the Pension Benefit Guarantee Corp will not take over another government entity as I mentioned in my comment about being in a different boat. I believe the City will ultimately file bankruptcy if the current economic situation deepens dramatically or lasts for another six years as you have suggested. I believe the courts will have their way and create a hybrid solution, a recalculation of benefits based on years of service and years of service credits tied to pension promises for those years actually worked. For those who purchased pension credits the courts will determine that greedy City Leaders violated and bastardized the spirit and intent of the ordinance. One originally designed for employees could not meet the city's 10 continuous years vesting requirement because of active duty commitments broke them up. The courts will set them aside also reducing the UAAL. Combine that with suggestions pointed out by Johnny V earlier in this thread. In other words...if an employee worked 20 years under the 2.5% benefit rules then those 20 years should be calculated under them. With the remaining years computed under the newer rates and rules. This eliminates the retroactive portion and the "gift" of public funds Johnny vehemently objects to and reduces UAAL simultaneously. Will employee groups who negotiated in good faith with the City for wages AND benefits be happy about it? I suspect the answer is NO!. Will litigation be initiated making law firms wealthier? We all know the answer to that one is YES. The real question is how long will it take before its initiated and ultimately resolved. Mr. Aguirre was at it for four years and that litigation is not even close to conclusion with the appeals processes. I suspect it will be another 10 years minimum with a quarter to a third of retired employees no longer receiving benefits.— January 1, 2009 11:27 a.m.
San Diego City Employees pension fund ailing
One last comment; Sometime in the future I suspect the Courts will be the ultimate arbitrator in determining whether or not Pensions contain gifts of public funds or negotiated benefits in lieu of full pay raises. Mr. Aguirre's litigation is still pending in the courts and all of our banter in Don's blog isn't worth much. For years the City said it could not afford pay increases, but it knew, or believed if it didn't offer competitive wages it could or would lose employees, who have valuable city operations knowledge. It was the City who offered minimal COLAs combined with pension enhancement in lieu of substantial pay increases. One can certainly argue the City, and in many cases the professional negotiators they hired, knew what they were doing. But one also notes, the City has incredibly bad timing in the sense of having bills come due during the nation is in the worst recession in 70 years.— December 31, 2008 4:42 p.m.
San Diego City Employees pension fund ailing
Johnny thanks for responding to my questions. I may not agree with all your answers but the dialog always interests me. I have to agree with Don's statement regarding the airline pilots. Their private pension funds were taken over the government's Pension Benefit Guaranty Corporation. Under their rules it was allowed to "recalculate" pension payments. I believe SDCERS is in a different boat so to speak. While it has many participants many are not vested this was not the case with the pilots. (Most vesting occurs after 10 years of service.) Should the City declare bankruptcy those not vested will probably be removed from the system and their contributions refunded or placed into a new tier of the pension system with reduced benefits thus reducing the liabilities. This leaves the existing retirees and vested employees. Remember SDCERS actually manages three entities, the City of SD, the Port of San Diego and the Airport Authority. I believe the last official valuation show one with more than 100% funded, one with about 80+% and the City portion in trouble. The point is the current balance of SDCERS system, even with the impacts of the current economic crisis is enough to pay benefits for many many years.— December 31, 2008 4:26 p.m.
San Diego Home Prices Back to Levels of March '03, Down 36% from '05 Peak
Amen to that MsGrant! Amen!— December 31, 2008 12:43 p.m.
San Diego City Employees pension fund ailing
Johnny here are a few questions for you. Isn't is true bankruptcy will not change the obligations of SDCERS for current employees? Hasn't the City already reduced the pension benefit promises for new employees? Didn't the voter pass Proposition "B" which prevents the City from increasing pension benefits in the future WITHOUT approval from a majority of the electorate? If the City does declare bankruptcy (I believe it will if the current economic condition continue for more than a year) won't the courts, not the taxpayers, restructure its debt rather than dispose of it? Is it true the court can force several solutions while it works on resolving Municipal bankruptcies. Could those methods in a balanced approach be increasing taxes and fees while reducing wages and benefits to current employees at the same time? Finally, what, or should I ask when, in your opinion, does a employee "earn" their pension?— December 31, 2008 12:39 p.m.
San Diego Home Prices Back to Levels of March '03, Down 36% from '05 Peak
Younger Americans are finally learning they cannot and should not believe their homes and credit cards ARE part of their annual income. For too long we, as a cultural phenomenon, have been using them as if they were an eternal fountain of cash. Well, the music has stopped and there aren't enough chairs, so somebodies left out. For those who raced around, living well beyond their mean, the party is over. The rest of us, who experienced previous periods of economic strife, who put some money aside for a rainy day while living within reasonable means, will be fine. I know it ain't flashy or sexy, but we're not scrambling to make the mortgage payment.— December 31, 2008 11:12 a.m.
San Diego City Employees pension fund ailing
Continued from above... No one on this planet holds a financial crystal ball. Even Berkshire Hathaway and Mr. Buffet have, and will, work through periods of diminishing returns. Forty years ago Berkshire Hathaway was trading at about $150 a share. Today it's trading $90,500 a share off its highs of $148,800 a share in December of 07. If we keep the true context of SDCERS investments in mind, with time horizons of 20, 30 and 40 years, the probability are we'll be fine.— December 31, 2008 8:43 a.m.