Can we hire this guy in LA?

Standing up to public safety officers? Oh my God. This guy will be burned at the stake for heresy!


Saturday, July 21, 2007
Supervisor says deputies' pensions are illegal
John Moorlach singles out sheriff's deputies union for cuts.
By PEGGY LOWE
The Orange County Register

An Orange County supervisor's first step to reduce public pensions Friday placed sheriff's deputies on the defensive and triggered a legal battle that could have statewide consequences.

Supervisor John Moorlach, long a [public] union critic [as all politicians should be as public unions are anti taxpayer; LAAG ed.], announced his plan to cut pension benefits retroactively paid to members of the sheriff's deputies union by arguing they are an illegal "gratuity" that must be rescinded. He wants to cut the retirement payments by one-third by creating a "blended" formula.

The Association of Orange County Deputy Sheriffs, the only union Moorlach singled out, said it was surprised by the public announcement but will respond to the legal battle. Mike Carre, the union's interim general manager, wondered why Moorlach didn't ask for the union's opinion because the 1,800 members have been working without a contract since October and have been in negotiations.

"In a true collective bargaining environment, one side goes to the other and says, 'We want to talk about it,' " Carre said. "All of a sudden on a Friday morning, Supervisor Moorlach has a press conference."

The announcement comes seven months into Moorlach's first term as a supervisor, and his public launch sets the proposal into high gear. The five-member Board of Supervisors first debates the plan July 31, when Moorlach hopes to win approval to get an injunction that will halt some pension payments to retirees.

"How do you give a nice benefit when no one has paid for it?" Moorlach said, referring to the $2 billion unfunded liability of the county's retirement programs.

If the board gives Moorlach the go-ahead and a court approves an injunction, retirees' payments could be affected within months. The effort could take years, as it's expected to go to the California Supreme Court.

Moorlach seemed hopeful his plan would gather strength statewide, saying he planned first to take the issue to court, and then, "Every other municipality in the state would have to decide what action to take."

But a state coalition working to protect public employees' pensions quickly responded to the plan, calling it illegal and unethical. The county plan, coupled with Moorlach's support of a proposed statewide initiative that would cut the pensions of newly hired public employees, shows he wants to make public workers the "fiscal scapegoat," said Dave Low, chairman of Californians for Health Care and Retirement Security.

Here are the answers to some questions about the plan:

How does Moorlach justify changing a decision approved by a former board in 2002?

The first legal argument centers on the union's asking to reopen an existing contract in 2001 and winning that approval in 2002 for the "3 percent at 50" formula. The formula allows for what critics say is a generous annual pension at age 50 – 3 percent of final pay times years of service – but one the deputy sheriffs say is a well-earned retirement for people who work in dangerous jobs.

Moorlach's plan would blend two formulas, paying the deputies 2 percent for time up through roughly mid-2002 and 3 percent for time served after. He thinks that when the board approved the new formula and applied it retroactively, it was unconstitutional because of debt limitations on local governments and a constitutional ban on public-funds gifts.

Will this plan include the county's other unions?

No. The 13,500-member Orange County Employees Association, which represents the majority of county workers, doesn't fit into Moorlach's legal strategy because its members raised their contributions to pay for its 2.7 percent-at-55 formula.

How many people will be affected?

There are no specific figures, but it's estimated the plan could affect about 2,800 employees and 500 retirees.

Would Moorlach's plan save the county money?

The short answer is yes. The long answer is a little more difficult. County analysts haven't made a determination. Moorlach said the plan could save the county $184 million to $550 million, but it could also cost the county law-enforcement officers. Carre predicted many people thinking of joining the Sheriff's Department, as well as many current employees, may go to one of the city police forces, which use the 3 percent-at-50 formula.

SANTA ANA – Past pension benefits paid to members of the sheriff's deputies union are an illegal "gratuity" that must be rescinded, Supervisor John Moorlach said today.

In the formal announcement of his plan to cut public safety employees' retirement by a third, Moorlach said he will first seek an injunction against retroactive payments made on years served before 2002, creating a new "blended" formula for pensions.

Moorlach outlined a legal strategy he will ask the Board of Supervisors to approve July 31, hoping for long-promised public pension reform and stirring a political pot that will undoubtedly infuriate the Association of Orange County Deputy Sheriffs union.

Wayne Quint, the union's president, did not return several calls seeking comment.

If the injunction is won, it could affect retirees' payments within months. That, in turn, could send some retirees back to work and certainly change life plans about spending. The entire effort could take years, as it's expected to go to the California Supreme Court.

Moorlach acknowledged that his proposal could affect hundreds of retirees and those still working.

"We're talking about people's lives, so we're not excited about what we're going to share," Moorlach acknowledged. "But we also have taxpayers who are going to pay a high price."

The three key legal arguments all center on the union's asking to reopen an existing contract in 2001 and winning approval in 2002 for the "3 percent at 50" formula. That allows for what critics say is a generous annual pension at age 50, but one that the deputy sheriffs say is a well-earned retirement for people who work in dangerous jobs.

Moorlach's plan blends two formulas, paying the deputies 2 percent for years before 2002 and 3 percent for the years served post-2002. He believes that when the Board of Supervisors approved the new formula, and applied it retroactively, it violated three provisions of the California Constitution:

Debt limitations on local governments.

The ban on gifts of public funds.

The barring of extra compensation for work already performed.

The 13,500-member Orange County Employees Association, which represents the majority of county workers, doesn't fit into Moorlach's legal strategy because its members upped their contributions to pay for its "2.7 percent at 55" formula.

Although he didn't have specific figures, it's estimated that the plan could affect about 2,800 employees and an estimated 500 retirees. Moorlach said the plan could save the county $184 million to $550 million.

Long a critic of public pensions, Moorlach has had several public battles with the deputy sheriffs union. That fight intensified last year after the union endorsed and helped finance his challenger. After the election, Moorlach called union leaders "thugs," then quickly called for an audit of a multimillion-dollar health-insurance fund administered by union leaders. He said the deputies should also accept the same cuts on retiree medical benefits that other employees took last year.

Union leaders fired back, sending 870 signed letters to Supervisor Chris Norby, the board's chairman, asking him to bar Moorlach from attending law-enforcement functions and funerals. During a dramatic board meeting in January, uniformed deputies showed up in force and told the board that being called thugs was irresponsible and demoralizing.

Skyrocketing public pension costs have gained attention across California, and many are urging state and local governments to trim the benefits or change how they are funded.

In December, Gov. Arnold Schwarzenegger appointed a 12-member commission to identify how much the governments owe and suggest ways to fund the benefit programs. Orange County faces a $2 billion deficit in its pension system and $1.3 billion for retirees' medical benefits.

Rich Wagner, president of the Lincoln Club, a group of GOP power brokers, said he hadn't heard of Moorlach's plan. But the county's unfunded liability is "irresponsible" and shouldn't be left for future generations to pay with their taxes, he said.

"Whatever is done, it's prudent for the supervisors to take a look at the cause of that and what should be done for the future," he said.

Contact the writer: (714) 932-1484 or plowe@ocregister.com

Lakewood Accountability Action Group™ LAAG | www.LAAG.us | Lakewood, CA
A California Non Profit Association | Demanding action and accountability from local government™