Weekly News – Jan. 24, 2014

Minnesota pension plans look good
According to a state auditor’s report, three major public employee pension plans in Minnesota exceeded expectations in 2012, posting returns between 12.5% and 15%. (The Dow Jones only managed about 7% in the same year, for comparison.) One of the funds, the pension of the Bloomington Fire Department Relief Association, is at 98.7% funded as of the end of 2012, a truly outstanding result compared to pension funds in the rest of the country. Needless to say, this is good news for anyone concerned with the state of public employee pensions.

Op/Ed says police unions ‘handcuff citizens
In this article, Steven Frias (credited as a regulatory lawyer and Rhode Island’s Republican National Committeeman) accuses the Cranston police union of blatant intimidation tactics, including blanketing council members’ neighborhoods with parking tickets and “disrupting” City Council meetings. Unions exist to go to bat for their members and get them a better deal, but it’s also important to take the high road and avoid tactics which can give ammunition to the opposition and result in bad press. Sometimes even a legitimate tactic can make your union look bad if it’s spun the wrong way.

City manager seeks court order over pensions
In Sacramento, city manager John Shirey has been authorized to compel the police union to go to arbitration. The dispute is over the city’s proposal to make the officers pay a 9% contribution towards their pension funds which had previously been paid by the city. The union points out that they made what they consider to be a fair proposal, which would include compensation to offset the 9% contribution. It’s certainly understandable that employees would resist having a 9% chunk taken out of their paycheck, but most of the other city unions have already agreed to similar plans.

Pennsylvania unions fight dues restrictions
In the Pennsylvania state legislature, there are bills in committee that would remove the ability for unions to automatically deduct dues from their members’ paychecks, which union leaders say is part of a broader national movement against collective bargaining and labor rights. Ron DeLord, a consultant to police labor unions and the former president of CLEAT, asks: “And why did the bill sponsor exclude prison guards, police and firefighters from the bill? You know why. Just like in Wisconsin where the governor attacked non-public safety to avoid the wrath of the more influential public safety unions. If the bill passes, I would encourage public safety unions to be prepared for the second round.”

Contract changes could pose hazards
In Orange County, Florida, the deputies union is protesting the proposed changes to their contract. The sheriff wants to lower minimum test scores for supervisor promotions from 85% to 75%, which deputies say could make for less competent supervisors and give the sheriff more freedom to hand-pick promotions. The union is also trying to get their pay scale more in line with surrounding communities. Fraternal Order of Police Lodge 93 official David Burdick said that “The money is there. It’s just for whatever reason, [the sheriff] doesn’t want to pay us.”

Chuck Reed’s pension reform doesn’t add up
In this editorial, Dave Low, the chairman of Californians for Retirement Security, discusses the reasons why San Jose Mayor Chuck Reed’s pension reform proposals are such a bad idea. He also plays the ever-useful “follow the money” game and reveals that the people backing Reed’s proposals are the usual anti-union suspects: venture capitalists, hedge fund managers, and other ultra-wealthy folks who will do anything to reduce their tax bill at your expense.