Public pensions a bit too generous

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A group pushing public pension reform has compiled a database of government retirees who receive $100,000 or more a year from the California Public Employee Retirement System.

There are more than 4,800 names on the list — an indicator of the generous pensions provided by local and state government.

According to the data compiled so far, the highest-paid public employee retiree in the state is Bruce Malkenhorst, the former city administrator, clerk, finance director and treasurer of Vernon, a small industrial city near Los Angeles. He earns $499,674.84 a year, or $41,639 a month in pensions.

OUR POINT

List of well-paid retirees will grow if state and local officials don't start acting to reduce generous pension benefits for new hires.

Here in our area, California State University, Stanislaus, has the most retirees earning six figures — seven. The city of Modesto has six; Manteca, four; and Turlock, one.

The database is only for CalPERS, so it does not include Stanislaus County retirees, who have a local retirement fund.

Firefighters and police officers dominate the $100,000-and-over list, which is no surprise. Public safety personnel have the richest retirement formulas in most jurisdictions. If they work for 30 years, police and firefighters can retire in their early 50s with 90 percent of their last year's salary, which is usually their highest.

Managers also dominate the $100,000-club list. These are the people who are supposed to represent the public when employee benefits are negotiated. But when government managers sit down with union leaders to dicker over compensation, they are negotiating for themselves as well. If rank-and- file workers get a wage or benefit boost, nonunion managers usually get a commensurate hike and pension improvement.

With the economy in decline and public employees being laid off, these pension disclosures are likely to stir anger. But it's important to direct that anger at the right people. Our elected leaders — governors, legislators, county supervisors, city councils, and local fire and water district board members — are to blame. They approved these lucrative pensions.

The CalPERS board also bears a responsibility. Over the years, the board has consistently failed to warn legislators of the risk involved in benefit increases.

Legally, it would be difficult, if not impossible, to roll back benefits already earned. But the Legislature and local governments can change formulas for new hires and should do so. Retirement age should be raised to 55 and higher. Pensions ought to be calculated based on the average of an employee's last three or five years on the job, as is common in the private sector.

The current benefits are not sustainable. Former Assemblyman Keith Richland summarized the situation with this comment: "If we don't do something soon, there may be several government entities that go bankrupt, and those that don't are going to die from a thousand cuts in services."

The database is available at www.californiapensionreform.com/CalPERS.