City Council members get long-term benefits
Residents and others who pay the taxes and fees that keep Yorba Linda’s municipal government and city Redevelopment Agency in business provide only a modest per month salary for the five City Council members who oversee both operations.
But the elected leaders are able to tuck a larger sum each month in their retirement accounts because they receive the same benefits afforded full-time city employees.
Monthly salary for council service is $500, plus an extra $30 for Redevelopment Agency meetings, up to four per month. Generally, RDA meetings are held concurrently with the council sessions at the rate of two each month, so members usually earn $560 per month.
However, if council members waive city-paid health benefits, the city will put $833 each month into their respective 457 deferred compensation retirement plans, similar to 401(k) plans, according to city Finance Director Susan Hartman.
Four council members—John Anderson, Jan Horton, Mark Schwing and Jim Winder—each put $9,996 into these accounts annually because they don’t take the health benefits.
Nancy Rikel is enrolled in the health plan, so only $374 is put into her 457 each month, Hartman noted, for a $4,488 total each year.
In addition to the 457 plans, the city pays about $1,500 each annually for Anderson, Horton, Rikel and Schwing to the California Public Employees’ Retirement System, which pays benefits that can begin at age 55 after a minimum of five years service.
The CalPERS benefit is based on council and RDA salaries—usually the $560 monthly figure—and is computed by multiplying service years by salary and Yorba Linda’s two percent at age 55 formula granted full-time employees.
Thus, a participant serving two terms and retiring at 55 would receive $89.60 per month, and a participant serving the current three-term maximum would receive $134.40 per month, plus annual cost-of-living adjustments, for life.
The two percent factor increases to 2.418 percent at age 63, so a participant serving two terms and taking benefits at or after 63 would collect $108.33 monthly, and a participant serving three terms $162.49 monthly, plus annual COLAs, for life.
The council recently suspended a $100 monthly auto allowance and cut back on city-paid meals at meetings but still collect a $36 telephone stipend. “We are self-insured for vision and dental, and employees do not contribute towards this cost,” Hartman added.
Council members also are paid to represent the city on county boards. The agency-paid, per-session stipends range from $100 to $212 for the bi-monthly and monthly meetings.
This year, Anderson serves on the Sanitation board, Rikel on the Fire Authority board, Schwing on two toll road boards and Winder on the Vector Control board. Horton was on the fire and toll road boards in 2007 and 2008.
But the elected leaders are able to tuck a larger sum each month in their retirement accounts because they receive the same benefits afforded full-time city employees.
Monthly salary for council service is $500, plus an extra $30 for Redevelopment Agency meetings, up to four per month. Generally, RDA meetings are held concurrently with the council sessions at the rate of two each month, so members usually earn $560 per month.
However, if council members waive city-paid health benefits, the city will put $833 each month into their respective 457 deferred compensation retirement plans, similar to 401(k) plans, according to city Finance Director Susan Hartman.
Four council members—John Anderson, Jan Horton, Mark Schwing and Jim Winder—each put $9,996 into these accounts annually because they don’t take the health benefits.
Nancy Rikel is enrolled in the health plan, so only $374 is put into her 457 each month, Hartman noted, for a $4,488 total each year.
In addition to the 457 plans, the city pays about $1,500 each annually for Anderson, Horton, Rikel and Schwing to the California Public Employees’ Retirement System, which pays benefits that can begin at age 55 after a minimum of five years service.
The CalPERS benefit is based on council and RDA salaries—usually the $560 monthly figure—and is computed by multiplying service years by salary and Yorba Linda’s two percent at age 55 formula granted full-time employees.
Thus, a participant serving two terms and retiring at 55 would receive $89.60 per month, and a participant serving the current three-term maximum would receive $134.40 per month, plus annual cost-of-living adjustments, for life.
The two percent factor increases to 2.418 percent at age 63, so a participant serving two terms and taking benefits at or after 63 would collect $108.33 monthly, and a participant serving three terms $162.49 monthly, plus annual COLAs, for life.
The council recently suspended a $100 monthly auto allowance and cut back on city-paid meals at meetings but still collect a $36 telephone stipend. “We are self-insured for vision and dental, and employees do not contribute towards this cost,” Hartman added.
Council members also are paid to represent the city on county boards. The agency-paid, per-session stipends range from $100 to $212 for the bi-monthly and monthly meetings.
This year, Anderson serves on the Sanitation board, Rikel on the Fire Authority board, Schwing on two toll road boards and Winder on the Vector Control board. Horton was on the fire and toll road boards in 2007 and 2008.
posted by Jim Drummond at 12:00 PM
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