San Diego Union-Tribue: 5 San Diego Area Cities Still Offer Top Benefits

5 cities still offer top pension benefits
Public safety employees there make no contributions, get full benefits at 50
By Jen Lebron Kuhney and Pauline Repard
San Diego Union-Tribune
8:36 p.m., June 11, 2011
 
Many government employers in California are backpedaling from the more generous pensions made possible by a 1999 state law, but five cities in San Diego County still offer the benefit to public safety personnel with no required employee contribution.

Two of those cities — Escondido and Coronado — offer the pension deal to firefighters and police officers. The other three offer it only to firefighters — Imperial Beach, National City and San Marcos.

In many cities, new hires are now receiving lesser benefits as governments face economic hardship not foreseen when the better pensions were granted at the turn of the century. Employers are upping employee contributions, lowering benefits, or both.

In these five cities, current and new employees alike still pay nothing into the pension system, then can retire starting at 50 with a lifetime pension of 3 percent of their salary for every year worked.

The Watchdog surveyed 83 government employers in the region, from the Vista Irrigation District to the state and federal governments, to compare benefits.

Spokesmen from of all of the cities with the top plans said that they are in negotiations to try to bring costs down.

Leslie Suelter, the director of administrative services for Coronado, said her city tries to keep its retirement benefits in line with other municipalities.

“We don’t try to lead the pack and we also don’t try to trail,” she said.

Several employers came close to the five cities with the best benefits.

Encinitas firefighters and lifeguards do not have full benefits at age 50, but they match the top cities with their pension formulas at age 55 and 60.

Similarly, Coronado city employees and Lakeside Water District employees do not have full benefits at age 50 or 55, but they match the top cities with a 3 percent multiplier at 60.

None of the top nine employee groups are required to contribute toward their retirement during employment.
Just two years ago, there were 20 employee groups in the region whose benefits were on par with the top tier.

Those that have left the circle, largely by beginning to charge an employee contribution, include police and firefighters in Chula Vista and Oceanside along with employees of the Yuima Water Districts in North County and the San Miguel fire district in East County.

Many of the employees still pay in less than police officers and firefighters in San Diego, where the pension crisis hit early and where those employees contribute as much as 18 percent of their salaries into the pension fund.

Imperial Beach Councilman Jim King said his city is fortunate not to require any employee contributions for firefighters.

“What people have now is something they’re comfortable with,” he said. “We never want to cut back on anything involving public safety. That’s the first priority, absolutely. This year, we are able to balance our budget. Next year is next year. We take it one step at a time.”

Some labor advocates are concerned that employees may leave for other agencies when they are paying more for lesser benefits. Stacey Stevenson, National City’s human resources director, said she doesn’t think that will happen.

“We’re creating a new standard,” she said. “I think agencies in the short term may experience some turnover, but not in the long run when these changes become the new normal.”

Sgt. Mark Porter, president of the Coronado Police Officers Association, acknowledged officers are not paying into the pension system, “and we want to keep it that way.”

“Many of us chose this business because of the retirement system,” Porter said. “The shift work, long hours, the dangers – we’re willing, because we got a good pension. Now, the industry is taking away the good part and leaving us with the bad part.”

Porter said Coronado is in good financial shape and shouldn’t cut benefits just because financially distressed cities do.

“That’s the message they believe they’re supposed to send,” Porter said. “Pension reform is the politically correct answer.”

The 22-year veteran said that Coronado typically recruits officers who have received training and a few years’ experience at other departments, rather than hiring and training rookies.

“It’s hard to attract people here on the glamour of the job,” Porter said, noting Coronado has a low crime rate. “Young people want the excitement. And if we can’t attract them with pensions, we might have to lower our standard of quality.”