Weekly News – Feb. 15, 2014

Teachers, police unions don’t like 401(k) idea
In Florida, legislation is being pushed that would overhaul the state retirement system (FRS). The proposed changes would close the state pension fund to state workers and school-district employees hired after July 1, 2015. Police and fire employees are being exempted from the legislation and would retain the ability to participate in the pension fund, presumably because it would be such an unpopular move and the exemption might convince powerful public safety groups to support the legislation. This move is yet another attempt to privatize previously-public pension funds, by moving to a 401(k)-style plan.

D.C. police union pres blasts salary comparisons
In Washington D.C., an arbitration decision in a contract dispute is being criticized by Kristopher Baumann, president of the DC F.O.P. He says the arbitrator should have been comparing D.C. officer salaries to officers in other large cities instead of nearby suburban departments. The bargaining process has been going on for six years, but raises were only awarded retroactively to 2013. Chief Cathy Lanier said, “Despite the shortcomings of the award, I am grateful that we have a compensation agreement that guarantees raises for our hard-working members through Fiscal Year 2017. I am hopeful that the future stability provided by the guaranteed raises demonstrates the city’s support for the best police officers in the country and their families.”

Omaha P.D. oversight board created
But the citizens are largely skeptical of the new board, which consists of unpaid board members who have no subpoena power and cannot conduct their own investigations. Community leader Willie Hamilton said, “The best we can do is a citizen review board with a bunch of volunteers with no subpoena power? That’s ridiculous.” The mayor’s office says the intent is to build trust between the police and the citizens of Omaha. Only time will tell if it works.

Council hits back at union
In Ontario, Oregon, city council members are lashing out at the police union after the union dared to disagree with the way the council was proceeding with plans to consolidate 911 dispatch centers. Council member Norm Crume, who called the police union’s comments “insulting” and seems very unclear on the concept of worker’s rights, said, “It infuriates me to think that some people may want more money to move to Vale to do their job. How does bargaining for a union benefit the safety of the community?” Vale is about 15 miles from Ontario, and police union leaders are particularly objecting to a part of the plan that could require officers from Ontario to transport in-custody suspects to Vale, taking them a total of 30 miles out of their way and keeping them away from patrolling the streets for that much longer.

Bankrupt city votes pro-union politicians out
This is one of those “see what your enemies are saying about you” articles. Mike Shedlock is pleased as punch that voters have elected “business-friendly pragmatists” in place of the “old guard” who were acting in support of working people (oh, I’m sorry, they call that “vested interests” now). Be sure to click on the Reuters link in the beginning of the article to get a less-biased view of the situation in San Bernadino.

Court rules city can reduce retiree health benefits
This ruling sets a worrying precedent. Allowing the city of San Diego to reduce health benefits for retirees living on a pension could spell disaster for retirees in the future. Many police officers retire before the age of 65, meaning they are unable to qualify for Medicare – so reducing or eliminating their health benefits in retirement means they are, at worst, suddenly out of options for health care; at best, they will end up having to pay substantially more in premiums than they may have budgeted for. This article is on the long side but we encourage you to read the whole thing as it is both informative and thoughtful.