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JustWondering's avatar

JustWondering

Detroit's "laughable" pension tomfoolery akin to San Diego's

Profits about the assumed rate of return, which was historically 8%, was referred to as the "waterfall". One of Jack McGrory tricks for balancing the city's budget during his tenure as city manager was too take those "excess profits" and pay for the Wilson / Blair health care promise to retiree. But low and behold the IRS says that's a no-no. Taking investment gains out of one retirement pension system to pay an OPEB is illegal. There were many years the city raided the fund's "profits" to pay for things it did not want to tell the taxpayers about. Once caught with its hand in the retirement cookie jar, the city went to a pay-as-you-go method of funding the health care promise rather than going to a prefund method. Then, healthcare costs exploded as it did for all of us and costs were out-of-control. Nowadays the city finally saw the light and negotiated with its employee groups creating a plan which has reduced future healthcare obligations for BOTH current and future employees. Is there still a deficit of unfunded healthcare costs... Yes. All due to promises made by Mayor Wilson and Manager Ray Blair more than 30 years ago and carried on by their successors. (Where were the media watch dogs back then?) Promises made, facts conveniently omitted from audits ( gov't accounting rules are a farce...even today, while improved rules have tightened things up, if use some of them you'd go to jail if you worked in the private sector). So healthcare costs never funded, let alone pre-funded it will take years to make up those payments in arrears. Like it or not, and most don't, we as taxpayers have a moral obligation to fulfill promises made by our elected leaders to our elderly retirees who fulfilled their end of the Wilson/Blair deal. Sadly the voters still choose NOT TO do due diligence before casting their ballot. However, on a going forward basis it is obviously in our own best interest as taxpayers to carefully examine and analyze any new bargains negotiated by our so called leaders. While holding them accountable for their actions.
— October 26, 2013 8:26 a.m.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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