At the close of the Carlsbad City Council’s May 18 meeting, Councilman Matt Hall observed, “History keeps repeating itself. When this issue first came before us in 2001, the mayor and I both voted against it.”
He was referring to an increase in retirement benefits approved nine years ago on a 3-2 vote. This time he joined the mayor on the winning side of a 4-1 vote to roll back those benefits.
Hall’s parting shot was self-serving and unnecessary, unless, of course, you’re running for mayor as the incumbent’s clone.
The new contract reduces benefits for new hires, requires current employees to increase their contribution to the state’s pension fund from 1 percent to 9 percent of annual salary and rejects a request for a 5 percent salary increase to partially offset that pay cut.
The council has been praised for saving the city from bankruptcy and showing leadership for other cities to emulate. But a closer look suggests city officials were motivated more by payback than prudence.
Follow the jump for the rest. . .
The city’s negotiator claimed costs would continue to be driven up by guaranteed benefits, the stock market crash causing dwindling returns on state retirement system investments and longer retiree life spans.
A case can be made for raising the retirement age for future employees. But CalPERS and the Legislature are addressing the recent spike in costs for the state’s pension program, and Wall Street has begun its recovery from the recession. Given those developments and the city’s enviable financial position, there was no need for Carlsbad to take urgent action.
Are firefighters overpaid? The city says the average gross salary of paramedic/firefighters exceeds $97,000. But $20,000 of that is in overtime pay not included in pension calculations. The base salary ranges from $63,000 to $77,000.
Mayor Bud Lewis claimed the average salary of the city’s “male breadwinners” ranges from $75,000 to $80,000, although city staff in attendance had no idea where those numbers came from. SANDAG reports the city’s median household income exceeds $101,000.
Regardless of his antiquated view of the primacy of male breadwinners, you have to wonder if the mayor really believes those we entrust with saving our lives and property should be paid no more than the average adult male Carlsbad resident.
One week after the council stiffed the firefighters, the mayor announced a tentative contract with the police union: 2 percent pay hikes this year and next and a phased-in increase in the amount they must pay into the pension system.
In contrast, firefighters agreed to reduced pensions for new employees and an immediate increase in their retirement contribution. In return, they got a one-year contract with no pay raise.
Looks questionable to me.
Richard J. Riehl can be reached at fogcutter1@yahoo.com
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