As most of you know, Bob Bunnell has worked in the administration of private pension funds for decades.
from the fact that the recent pay raises were based on the ridiculous
practice of keeping up with other county governments, it is also
important to note that the Marin County Supervisors have not weighed in
on the Calfire v CalPERS decision that will soon be released by the
State Supreme Court.
a similar case before the court, MAPE v MCERA, one would/should expect
our elected officials to support the Marin County Employees' Retirement
Association. Taking the political way out by dodging a firm commitment
is something we have come to expect from these representatives, but it
doesn't make it right or more palatable.
Salary increases will increase pension costs/Bob Bunnell, CSPP/ Marin IJ 1/15/2019
It is incredible that our county administrator would make the statement (IJ, Dec. 14) that there is no increase in pension cost due to the recent salary increases to management employees. He is referring to the salary increases being less than the 3 percent salary increase assumption that the actuary uses for the funding of the plan.
Fact: Any salary increases will increase the cost of the pension plan. This is especially true for increases to the higher paid, older management employees.
The county pension plan annual taxpayer cost is 25.32 percent of payroll, of which 11.95 percent is attributable to the payment on the unfunded liability. The county administrator should be pursuing real pension reform measures that could reduce future risk and enable the plan to stay well-funded — such as eliminating the California Rule — instead of finding ways to justify pension cost increases.
The California Rule inhibits administrators from making any adjustments to future benefits and are thus unable to combat rising pension costs and unfunded liabilities. This is currently being reviewed by the California Supreme Court in the case of CalFire v. CalPERS.
None of our supervisors or the county administrator have actively supported this reform.
Bob Bunnell, Novato;
Citizens for Sustainable Pension Plans