Pensions back on Palo Alto City Council agenda
Original post made on Jan 21, 2013
Read the full story here Web Link posted Monday, January 21, 2013, 9:36 AM
on Jan 21, 2013 at 11:28 am
A 10 fold increase over 10 yrs. Yikes. I do hope the council tries to better control this going forward
on Jan 21, 2013 at 1:50 pm
Is there a mandate that the City has to pay actual pensions. I don't think Stanford does this. I live on an annuity through TIAA-CREF (I think they now use Fidelity) which offered various funds that you could pay into through salary deductions before taxes like an IRA, which the university matched up to a certain annual limit. And after 30 years converted to an annuity. When I hear of the pension amounts paid out to individuals, especially those who can pad their pension in their final year of employment, I am quite shocked. And then they come back as "consultants." Can they still do this? Perhaps the large pensions quoted are for the managers. I would like to know the pension amount of a typical retired clerical worker last year.
on Jan 21, 2013 at 2:04 pm
> Is there a mandate that the City has to pay actual pensions
The City itself doesn't pay pensions. It has "outsourced" that responsibility to CalPERS. The City is responsible for the difference between what the employee has been promised, and CalPERS ability to pay. Keep in mind that CalPERS not only takes care of all the administrative work necessary to compute/pay pensions, but it also has the first line responsibility to raise the money via its "money managers" to create the money to pay these promised pensions.
The City does not have any obligation to hire employees in order to discharge its obligations (typically service deliveries) to the residents/business owners. Once it hires employees, they have the right to unionize, and negotiate whatever financial arrangements that they can with their employerin this case the Municipal Corporation that is Palo Alto.
Labor unions have been effective in getting the legislature to outlaw some outsourcing, but by-and-large, the City is free to put any of its operations out to bid in the private sector.