Retirement Committee ReportBy Jean S. Thomas,                      This charter section is commonly       for full retirem...
Upcoming SlideShare
Loading in...5
×

RECCSF Bulletin 7 8-2011

842

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
842
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "RECCSF Bulletin 7 8-2011"

  1. 1. Retirement Committee ReportBy Jean S. Thomas, This charter section is commonly for full retirement benefits; increaseHerb Meiberger, CFA, and Stephen referred to as the supplemental the average compensation periodHerold COLA “floor.” for benefit calculation; require that Basic COLA: No changes made elected officials pay retirementTwo Proposed “Pension in either Mayor or Adachi. contributions; and place a cap onReform” Charter Amendments Changes to Current Employ- retirement benefit amounts.Slated for the November Ballot ees’ Contribution Rates: (F Y I: These are: the Mayor/Public Em- The employees’ contribution rate Gary Amelio:ployees’ Committee and the Adachi is a percentage of their gross pay; If you were fortunate enough toproposed amendments. SEIU is the City’s contribution rate is a be at the June 8 RECCSF Annualthe only major employee organiza- percentage of City gross payroll.) Luncheon and hear our featuredtion that hasn’t yet agreed to the Both Mayor and Adachi trigger ad- speaker, SFERS Executive Direc-May 24 mayor’s proposal. Right ditional employees’ contributions, tor Gary Amelio, you know thatnow, we expect that the mayor’s depending on employees’ annual his comments underscored manyretirement-related provisions will salaries, if the City’s contribution of the points that this column hasremain firm, even though changes rate increases. Both Mayor and emphasized: Don’t believe half ofcan be made at the Board of Super- Adachi provide that employees with what you read in the daily press;visors’ Rules Committee later this annual salaries under $50,000 will SFERS is not going broke. SFERSmonth—unfortunately, after press pay no more than the employee did not write off or sell assets dur-time. (Please see the POB report standard contribution rate, or base ing or after the 2008/09 downturn.for health-related provisions in the rate. Mayor doesn’t state a specific Last fiscal year, earnings weremayor’s proposal.) No employee base rate, but Adachi does: 7-1/2% about 12.5%; this fiscal year, asorganization that we know of has for miscellaneous and 10% for po- of current date and unaudited, ex-endorsed the Adachi proposed lice and fire. The Mayor proposal pected returns will be about 20%.charter amendment, which con- both increases and decreases the Gary said that SFERS processedtains retirement provisions only. employee contributions over the almost twice the normal numberIt’s worthwhile to compare the may- base rate, depending on employee of retirees (about 1100) last year,or’s (Mayor) and Adachi’s (Adachi) salary and City contribution rate. and he believes that the number ofretirement changes, though, be- Examples: When the City contri- retirement applications will returncause if both charter amendments bution rate is over 12%, employees to a more normal level this year.win, whichever gets the higher in the annual salar y range ofvotes will prevail. Sources of the $50,000-$100,000 will pay up to Other Items of Interestfollowing comparison are: (Mayor), 4% more than the base rate; when Date and time change of the fullBoard of Supervisors, 5/26/2011, the City contribution rate is under SFERS Board meetings.“Legislative Digest,” (City retire- 11%, they will pay up to 4% less At its 6/14/2011 meeting, thement benefits and health care than the base rate. Employees SFERS Board agreed that, effectivebenefits); and (Adachi), “SF Pension with annual salaries over $100,000 7/13/2011, full Board meetings willReform, Solving San Francisco’s will pay up to 5% more or 5% less, be held every second Wednesday ofFiscal Crisis.” depending on these same City con- the month, 10 a.m. to 1 p.m. Effective dates: Mayor, 1/7/2012; tribution rates. • Employee-elected CommissionerAdachi, 1/1/2012 The Adachi proposal does not Herb Meiberger, CFA’s current Supplemental COLA: Both May- provide decreases in employee five-year term will end Feb. 20,or and Adachi require SFERS to be contributions. Adachi rate tables 2012. Herb announced that he is100% funded on an actuarial basis are very complicated; but, in sum- running for another term and isbefore distribution can be made. mary, with City contribution rates collecting signatures to qualify forBut the Mayor “Legislative Digest” ranging from 10% to 30% and the ballot. Ballots will be mailedsays that for new hires, “…the ben- over, the highest-paid employees on 12/27/2011. (Watch yourefit will not be permanent. In any (annual salaries of $200,000 and mailbox for those ballots in lateyear when the ‘excess returns’ are upward) will pay a maximum of December/early January!) Elec-insufficient to pay the benefit, the 8.0% more than the base rate; and tion will take place 1/16/2012previously approved supplemental employees in the annual salary through 1/27/2012.COLA’s would expire …” New hires, range of $50,000–$59,999 will pay • Cong ratulat ions to employ-therefore, will not benefit from the a maximum of 5% more than the ee-elected Commissioner A lexisting charter section, sponsored base rate. Casciato and mayoral-appointee,and won by retirees in the early New Hires: As of effective dates, Commissioner Brenda Wright,2000s, which provides that in any although details of the two pro- on being selected on 6/14/2011year when ‘excess returns’ are in- posed amendments differ, both as Board president and vicesufficient to pay the benefit, that Mayor and Adachi include provi- president, respectively, for an-the supplemental COLAs approved sions to increase the minimum other one-year term.in prior years remain in effect. retirement age and maximum age continued on page 6 Page 3

×