City Pensioners Enjoy Ride on The Gravy Train Over $100,000 a year going to 14 former city employees By Amy Sybestri Sam Leand Ter ‘Almost one-third of San Leandso's current fllsime city «employees make over $100,000 er year, bat what some people ‘might ot realize is that many city workers continue to take home six-figure salaries years afer they ei. Fourieen former employees, including recently retired City Manager Joha Jermanis and Police Chief Daie Attain, ae Tees in pens ? ‘The California Public Em- ployee Retirement System (CalP- ERS) is the pension program for state and city workers. During their carers, workers pay into the system and so does the city. ‘The money is invested, and the employee draws from CalPERS ‘when he of she retires, Tn San Leandto, as well as some other cities, the city pays the “employee contribution” as ‘wells the city's sare. San Leandro Human Re- sidthat re and police employees callet 3 percent oftheir highest salary per year that they worked, becoming eligible afer age 50. ‘The sate for non police and fire ‘employees is calculated at 2.5 eroen, and they ae elbible for a pension after age 55. So, if polioe officer worked for 25 years, and made $100,000 just one year, he would get {$75,000 annually from CalP- ERS in retirement. If he setired at age 60 and lived unl he was 80, he'd collect a total of S15 nillion from the system, plus heath benefits. ‘Things cap of fr police and fire department employees st 90 percent oftheir top salaries, but ‘beremployees can get upto 100 Percent of ther top salary for any single year they worked. Employees can also pad their pensions by “selling back” sick and vacation days just before they retire, making their total salary higher than it would have ‘een otherwise and having their pension calculated by the inflated number Caire said pension standards are mandated by the state and CCAIPERS itself, not the city of San Leandro. Financial Director Perry Cart- raid that the CalPERS requires that cities pay. contributions of 8 percent oftheir salary for non police and fire workers and 9 percent fr police and fre. ‘As the system stands in San Leandro, the city pays not only it's state-mandated portion, but also the share that workers are supposed to contribute. Mayor ‘Tony Santos sai that paying the ‘workers’ share is common among, Califomia cities and was negot ‘ed into employeés’ salaries in Tiew of raises yeas ago. ‘The total amount the city paid into CalPERS jin the lst fiscal year was $10.3 million — $7.5 rillion for the city contriba- tion and $2.8 for the employees ‘Some say that contining to ‘ay the employee contribution ‘whl the city isin dire financial straights is unwise, but atarecent ‘budget meeting, Santos and fel Jow City Couneil Finance Com- mittee member Jim Prola shied way from cutting the incentive. Mayor Santos said thatthe city’s contribution of the em- ployees’ share is something that is frequently discussed among the ‘City Council, and though it may be seenas a way to save the city ‘money, it might not be the best ‘move to attract top employees and keep morale high. “At the moment, we don't hhave any plais to-change the ‘way it is handled,” said Santos. “But these are discussions that are happening up and down the state. We've made a good faith ‘commitient to our employers. ‘These ae standards that arin our ‘memorandums of understanding and I doa’t want to suppor wil: Tie-illy cut.” Foner school board tse ‘Situation abit the cunt system is ” ‘ihn od aor poner ing higher salaries and the pen- ‘sions only getting bigger. Cassidy, who many believe might tow his hat Back in the city ‘s political ring inthe 2010 election, said that all the city contracts need to be negotiated tonot include the city paying the ‘employee sharé into CalPERS when contracts expire Dec. 31. “Contracts are not written to last until the end of time,” said Cassidy.” When the curent contracts expire, it would be gross fiscal irresponsibility for the mayor and'City Council to continue to pay closer to $3 mil- Jion annually fr obligations that _ate soley the employees’ Private sector jobs don'thave thse kinds of benefits. Meanwhile, the city is cuting police postions hours ‘at the pool, and the library, and Currently, 230 San Leandeo retired police and fire employees and 453 non police or fie city employees are drawing from CalPERS. Sux Femniro Cres THURSDAY, AUGUST, 2009 Meanwhile, 93 police and fire employees and 318 ober city employes are paying into the system. With more taking ‘than giving an salaries growing larger every year, Cassidy said he is concemed thatthe pension system wil implode. ‘Adtionally, CalPERS “guar- antees” its stock investments, ‘meaning tha, ifthe market akes sive itisuptparcipatingci- ies (and citizens) to bridge the gap and make p fr any losses. nee te i fe sions they ve lone igo” said Cassidy “a tis ie yeaa Se od ‘penis Hata he sigan ‘Santos said any cuts to the ‘San Leandro employee contri- bution would be unfair to the current employees who are paying into the system with the hhope that they can benefit from itone day. “A lot of individuals with ‘means are always considering the retireinent‘situation,” said San- tos. “But what about their own retirements? They don't want to ‘ut their own, People are always. saying, ‘cu someone else. Many of our employees have worked Jong and hard and itis only fais that they are benefiting from the system in place.” The $100,000+ Club The Caifomia Pension Re- fom website (wwscaliforiap- cnsionefoem.com)hasasearch- able database of what retired state and city employees recive stimally through CalPERS. Here are the San Leandro former employees drawing pen- sions of over $100,000: John Jermanis, City Manager $216,659 Dale S. Attarian, Police Chiet ‘$171,630 Joseph Kitchen, Police Chiet ‘$165,890 Dennis Glover, Police Lieuten- ant $142,215 Leroy E: Riordan, City Man- ager $134,607 James O'Meara , Police Cap- tain $126,474 Robert Maginnis, Police Chief st20z21 John Bischott, Police Licuten- ant $114,209 ‘Robert Rockett, Public Works. Director $114,067 Daniel Marchetti, Police Lieu- tenant $110,068 Louis Spirou, Jr, Police Of- ficer $106,357 Wiliam Rugg, Community De- velopment Director $104,825 James J. Johnston, Assistant Fire Chief $103,149 Randall Stout, Police Captain $101,165 Dan Lunsford, Emergency Services Manager $100,645,