Weekly News – Dec. 9, 2013

There were so many momentous decisions impacting law enforcement officers and other public sector employees in the last week that our heads were spinning. We will briefly summarize the ones we felt were the most important and give you the link if you want to read more.

Illinois Legislature Approves Retiree Benefit Cuts
The controversial bill will curtail cost-of-living increases for retirees, offer an optional 401(k) plan for those willing to leave the pension system, cap the salary level used to calculate pension benefits and raise the retirement age for younger workers, in some cases by five years. In exchange, workers were to see their pension contributions drop by 1 percent. The measure also calls for the state to increase state payments into the system by $60 billion to $70 billion.

We Are One Illinois, a coalition of labor unions that opposed the bill, issued a very different assessment. “This is no victory for Illinois,” it said in a statement, “but a dark day for its citizens and public servants.”

San Jose cops approve a new contract
Officers working with the embattled San Jose Police Dept. voted by a 79 percent margin to accept the tentative agreement reached by negotiators. The plan calls for a 10.66 percent ‘restoration’ of the ‘voluntary’ 10% pay cut taken by officers several years ago. The officers will also get a 4 percent raise this year and another 3.33 percent basically for the next two years the long, bitter contract dispute between San Jose and its police union took a major step toward ending when the officers overwhelmingly approved a new labor agreement this past week. But many officers told KTVU they are not optimistic the ‘raise’ will stop the departures from a force that has dwindled to around 900 active cops.

“Other law enforcement agencies are offering more pay and benefits, ” said one officer, “we are just getting back to where we were a few years ago and with less benefits.”

Does your pension system need an overhaul?
In Jacksonville, Florida people are taking a hard look at how the city’s pension system is structured and governed. When you read about the problems it may make you want to look at how the retirement system is set up in your town, city, state or county.

Among the things they are looking: the composition of the board and the institution of term limits; conflicts of interest associated with the funds general counsel, having actuarial studies done annually instead of every three years, and establishing an investment committee that has no conflict of interest problem.

The city will also take a look at a report by Pew officials that recommends various proposals for management of the city’s pension fund.