Fiscal Responsibility

By Susan L. Adams, R.N.

The taxpayers expect government to operate within its means while providing a full array of important public services. Our county is one of only 2 counties in the state with the highest credit rating.

Marin County contributed $50 million to its pension obligations last year. With 80% or greater considered healthy, the county is currently 78% funded in the Marin County Employees Retirement Association (MCERA), compared to San Rafael with an estimated level of funding in the MCERA pool at 61%-62%. The county also changed the tiers, with employees contributing more, retiring older (61 ½ years), 3 year averaging of base pay, 2% of salary per year of work, no spousal retirement medical and a cap of medical contributions to about $2,500/yr.

As a result, the county received the highest possible AAA Fitch and Moody ratings... one of only two counties in the state to achieve this.

Each year our board continues to pay down these liabilities for the future, even though current returns are coming in higher than the 7.5% expected rate. We cannot assume they'll last forever. The new tier will eventually show significant reductions in future years as 25%-33% of our workforce will retire within the next 5 years and the newer employees will have the newer tier of pensions. We are planning for the future and following through on those plans.

I am also currently working with the California State Association of Counties as we continue to work on reform proposals with the State Legislature. For example, the county is considering the pros and cons of a defined contribution option, but would need to do a fiscal evaluation, have state legislation authorizing this option and work with our labor unions, which have worked well with us during the recession. We are also exploring the possibility for a hybrid pension option that would allow younger employees who do not plan to stay for a whole career in the public sector to have the option of joining a portable pension.

Underlying all of this, though, I remain committed to protecting fair compensation and public pensions for our public employees in light of the push from a very vocal (but small) group of people who would like to drastically change pensions without the benefit of negotiations with our unions.

Personally, I have declined to sign up for the county's pension fund for myself.