DEALING WITH PENSION REFORM

By Bill Sutherland

The question is often being asked, should we be pursuing pension reform in Torrance?

First and foremost, Torrance is not going bankrupt. It is being said that a recent Wall Street Journal report predicted that Torrance is facing bankruptcy due to excessively high pension plans. Here are a few key points that need to be made.

The Wall Street Journal report used only the City's General Fund to determine the percent of assets that are dedicated to the unfunded liabilities of our pensions. Torrance however, is a full service city that also has enterprise funds as income including our airport and transportation systems. The report was made based on incomplete data.

Pension plans are subject to meet and confer with our employee organizations. We cannot alter the plans for existing employees unilaterally. I respect the plans that were negotiated in good faith by former Councils; they made a contract with these employees.

About six months ago the state mandated reforms that lowered the rate of some pension programs. In addition the City negotiated new and lower plans for new employees.

We are on a 2 year budget cycle and we have a balanced budget for the next 2 years that includes all payments to the California Public Employees Retirement System (CALPERS). As Mayor, I pledge to continue to have a balanced budget and reduce our pension liabilities.

Safety Officers pensions were based on 3% times the number of years served with eligibility for retirement at 50 years of age. The rate for new officers is now 2.7% at 57 years of age.

There are those who hang on to the ludicrous position that the City of Torrance is going bankrupt because of employee pensions. It just isn't true and as Mayor I will continue to see that doesn't happen.

A hallmark of my years of service to the City of Torrance has been responsible and open fiscal management. It has also been respect for our employees and their benefits negotiated in good faith, this will not change when I am your next Mayor. I believe in Leadership with Integrity.

I own a small business in the City of Torrance, so I do not have a public pension, but I do understand the necessity for a fair wage and pension system in order to recruit and retain the best quality employees the people of Torrance deserve.

A vote for me for Mayor assures my continuing pledge to have a balanced budget and work to reduce our pension liabilities.