Friday, November 07, 2014

Retired Yorba Linda council members' medical, pension benefits continue for life under CalPERS

Here's a mixture of new and updated information on the hot-button issue of lifetime medical and pension benefits for which now-retired Yorba Linda City Council members qualify:

--This year, the city is paying $13,490 in medical insurance premiums for three past members. The city pays 90 percent of the premium, rising to 95 percent next year and 100 per-cent in 2016, up to a $1,167 monthly maximum per retiree.

Monthly city-paid contributions are $276 for Barbara Kiley and $295 for Hank Wedaa, both for single coverage, and $553 for single and one dependent coverage for Gene Wisner, according to data provided upon my request by Finance Director Dave Christian.

Kiley, elected to two terms, served eight years, 1992-2000; Wedaa, elected to eight terms, served 30 years, 1970-1994, 1996-2000 and 2007-08; and Wisner, appointed and elected to five terms, served 15 years, 1983-1992 and 1994-1999.

--Five past members collect monthly pensions all or partly based on years of council service through the California Public Employees Retirement System, known as CalPERS: Kiley, Wedaa, Wisner, Irwin Fried (four terms,1976-1992) and John Gullixson (three terms, 1990-2002).

The five collected a combined total of some $18,000 last year, based on council service. Gullixson also earned CalPERS credit for a post-council stint as executive director of Plumas County's Local Agency Formation Commission.

Pensions can begin at age 55 after a minimum of five years of CalPERS-covered service, computed by multiplying service years by salary and a 2 percent at age 55 formula. Salary for most was $500 per month plus for most a $60 monthly Redevelopment Agency stipend.

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 2 percent cost-of-living adjustments, for life.

The 2 percent factor increases to 2.418 percent at age 63, so a participant serving two terms and taking a pension at or after that age would collect $108.33 monthly, and a participant serving three terms $162.49 monthly, plus the yearly COLAs, for life.

--Since CalPERS pensions vest upon five years of service, members with less than five years would not qualify for a pension, unless they have other CalPERS-covered government employment that can be added to the council service to meet or exceed the five-year minimum.

Or individuals leaving council service can apply to CalPERS to have the seven percent of salary employee contribution, plus interest, returned, even though that entire amount was for many years city-paid. Employer contributions – currently 18 percent – aren't rebated.

In 1995, council members granted themselves the same benefit and retirement packages as management employees – on a 3-2 vote – with Kiley, Wisner and Mark Schwing in favor and Gullixson and Dan Welch opposed.