Says City Officials Must Be Ready to
“Hit the Ground Running” on Pension Reforms in 2012
Carl DeMaio today announced the creation of a “Retirement Security Task Force” to provide ideas to city officials on how to “expeditiously and properly” implement sweeping changes in city employee pension programs.
“This task force of outside experts will provide valuable advice on how to manage the transition from the old pension system to new retirement plans that offer security for employees and affordability for taxpayers,” explained DeMaio in announcing the formation of the group.
If the Comprehensive Pension Reform (CPR) Ballot measure or any other measure(s) are approved in June, the City will likely have to begin implementation of any reforms within 30 days. In addition to what may or may not happen at the ballot box, the Mayor and City Council can implement reforms on their own using the city’s annual cycle of labor negotiations.
“We should not wait until a decision is made to begin thinking about how best to implement reform,” DeMaio noted. “Like any business, our city government should approach pension reform by embracing long-range planning and seeking the input of outside experts,” DeMaio said.
DeMaio has already requested the Task Force tackle a number of questions relating to the creation of a new defined contribution/401(k) program for new city employees including vesting rules, contribution rates, investment choices, portfolio management, etc. DeMaio is requesting the task force present options and justify its recommendations based on industry benchmarks.
“City employees should receive no better, and no worse, a retirement package as the taxpayers who foot the bill,” DeMaio noted in emphasizing the need to establish a system based on industry benchmarks.
DeMaio is inviting members of the public and city employees to submit their ideas for consideration. A public hearing will be scheduled in the first quarter of 2012.