Voters Could Have Final Say In Deputy Pensions

The Board of Supervisors voted today to explore a possible challenge to a measure proposed by the sheriff’s deputies union to make voters the final authority on whether retirement benefits for county public safety personnel can be modified.

“This (proposal) … strips this and future boards of supervisors from carrying out their most fundamental job, and that is to effectively manage the budget in tough times and provide basic services,” said Supervisor Bob Buster.

The Public Safety and Taxpayer Protection Act of 2010, sponsored by the Riverside Sheriffs’ Association, mandates that a majority of voters approve or disapprove any action by the Board of Supervisors to change current or future public safety employees’ retirement and death benefits.

The union collected more than the 38,000 petition signatures required to put the initiative on the November ballot, according to the Registrar of Voters’ Office.

The board directed the Executive Office to analyze the measure’s fiscal impact to the county and report back in 30 days.

Supervisors Buster and Jeff Stone will also form an ad hoc committee to study putting a competing measure on the ballot, offering voters an alternative that would include limiting changes to survivors’ benefits but continue to grant the board authority to adjust pension benefits.

Riverside County is saddled with roughly $800 million in unfunded pension liabilities. County budget analysts argue that without adjustments to employees’ retirement plans, the debt load will increase to unsustainable levels.

Under the union initiative, the county would be required to adhere to the current retirement formula of “3 percent at 50” for public safety personnel. The formula bases compensation on 3 percent of the average of the three highest-paid years of an employee’s career, multiplied by the number of years on the job.

An example provided by the Peace Officers’ Research Association of California shows that a law enforcement officer with 18.5 years of service would be entitled to 55 percent of his active-duty pay and benefits at the time of retirement, if the formula is used.

The minimum eligible age to collect benefits is 50.

Not all counties and cities have contracts that lock in the “3 percent at 50” formula.

Riverside County maintains its program through the California Public Employees Retirement System, or CalPERS.

The initiative states that even if the county were to sever ties with CalPERS, the “3 percent at 50” rule would still apply for public safety workers, unless a majority of county voters approve changes proposed by the board. Any modification to survivors’ benefits would have to pass muster with voters, as well.

A Pension Reform Advisory Committee formed by the board last month is expected to report back in September on possible alternatives to the county’s current defined-benefit system, which guarantees employees lifetime salaries based on years of service.

One option is switching to a defined-contribution plan, such as a 401k, according to county officials.

Reform advocates have also proposed increasing the minimum age to receive benefits to 55 and making the “3 percent at 50” formula “2 percent at 50” in order to save money.