Posts Tagged ‘retiree healthcare’
The public deserves to know exactly what is in this deal how the numbers were reached. Once again, the labor unions and politicians are telling the public to trust them to give public employees an enormous benefit in a backroom deal. If this was really the good news it’s being sold as, then the public should have been given more than one-page handout before the Council voted to approve it.
From what we do know about this deal, here are some of the glaring flaws:
City Attorney Jan Goldsmith lauded the agreement the City reached today with labor unions to drastically reduce retiree health costs — a move that will save San Diego taxpayers more than $700 million.
“This settlement … achieves an excellent result for the City,” Goldsmith said today at a joint news conference with Mayor Jerry Sanders, Council President Tony Young, Council President Pro Tem Kevin Faulconer and others.
Faulconer praised Goldsmith and Sanders for brokering this historic deal.
15-Year Contract Creates De-Facto “Vesting” of Life-Long City Employee Benefits On Top of Medicare
Just when you thought bad pension deals were a thing of the past at City Hall, along comes this unprecedented 15-year binding contract that guarantees life-long taxpayer-funded health benefits to city employees that are far in excess of private sector benchmarks.
How can city leaders actually claim this deal is good news when it allows city employees to receive an annual guaranteed allowance of $8800 plus Medicare?
Among the flaws in the deal:
Councilmember Carl DeMaio released today the following presentation of data and findings revealed in the city’s study on the cost of retiree healthcare benefits granted to city employees over the years. Councilmember DeMaio is proposing that the benefits be immediately reduced to the level currently funded in the city’s budget – and that further reductions be examined in the context of a long-term financial recovery package for the city.