President's Message

Steve Turner
President, SBPOA

May 2011

Members,

At a recent City Council meeting, Councilman Tobin Brinker requested the City Managers Office conduct an analysis regarding public pension reform.  This should come as no surprise to any of us.  It seems that a day does not go by without hearing about public employee pension.

The information found in most of the media is often filled with flaws and myths.  Fortunately, there are plenty of sources available that provide accurate information regarding public employee pensions. An obvious source would be the CalPERS website.

I know that we all are very busy and sometimes dont have time to research information.  So, to help you out, I brought the information to you.  The below "myth busters" can be found on the CalPERS website. This is a partial list.

Myth: Police and firefighters retire at age 50 with 90 percent of pay.

Fact: CalPERS records indicate that over the last seven years, safety workers who retired at age 50 with 30 years of service represented 1 percent of all those retired. The reason very few ever would receive this level pension is that they would have had to start working age 20 to earn 30 years. Most start their safety careers at age 27, 28, or 29.

Twelve percent of all public safety members are subject to the 3 percent at age 55 formula. They would need 37.5 years of service at age 50 to get 90 percent, and would have had to start working at age 12.5 to earn 37.5 years. And 7 percent of all public agency safety members are subject to the 2 percent at age 50 formula. They would need to have 45 years of service at age 50 to get 90 percent, and would have had to start working at age 5 to earn 45 years.

Myth: The State of California and taxpayers pay the total cost of public pensions.

Fact: All government workers contribute to their CalPERS pensions. For state employees, the range is five to eight percent of their monthly earnings; for public agencies it is five to nine percent. While the vast majority pay five percent, firefighters, peace officers, and the CHP pay eight percent.

Myth: Pension Costs for the State of California have increased by 2000 percent in the last 10 years.

Fact: This statement compares a time when the State paid little or nothing during years of robust investment earnings and took a pension holiday to the recent market cycle extremes and current economic downturn.

Fact: In 1981-82, pension contributions for the largest category of employees cost the State 19.6 percent of payroll. For the current 2009-10 fiscal year the state is paying 16.9 percent.

Fact: The State of California pays less as a percentage of payroll today than it did in the early 1980s.

Myth: Public pension benefits are excessive and a drain on the public.

Fact:
The average CalPERS pension is about $25,000 per year. Half of CalPERS retirees receive $18,000 per year or less in benefits. Unlike the private sector, 40% of CalPERS retirees do not receive Social Security, making their CalPERS pension their sole source of pension income, other than savings.

Fact:
Seventy-four percent of CalPERS retirees receive $36,000 per year or less. School pensioners in the CalPERS program receive on average $1,192.00 a month. 

Fact:
About 2 percent of the nearly half million CalPERS retirees receive annual pensions of $100,000 or more. Many are retired non-unionized or specialized skilled employees or other high wage earners who worked 30 years or more. Many served in high-level management positions.

Fact:
CalPERS pensioners help stimulate the economy. A study found that pension income to 674,000 CalPERS and CalSTRS retirees generated an economic impact of $21.1 billion to the State’s cities and counties. The economic footprint of retiree spending rivaled that of the hotel and accommodations industry of the State in 2006. In all, California public retirees put back $2 into the economy for every $1 they receive in pensions.

Please, pass on this information to family, friends, and anyone else who will listen. 

Until next month, stay safe.
Steve Turner

Dear Membership,

The past few weeks have been somewhat hectic for our department and membership. We
have been through promotional testing and change among the POA Board of Directors. I
want to thank each of you for maintaining your professionalism during these changes.

I’d like to take a minute to bring everyone up to date regarding the changes on the POA
board. On April 13, 2011, during the regular monthly meeting, Rich Lawhead resigned
his position as POA President. Per the By-Laws, I (being the Vice President) assume the
Presidency. This term will expire at the end of 2011, at which time I will seek your vote
for re-election.

As I stated during that meeting, Rich Lawhead spent the past ten years as President of our
association. He at least deserves our gratitude for doing a job that most people are
unwilling to do.

Upon becoming President, this left a vacancy at the seat of the Vice President. Again,
per the By-Laws, the President shall appoint an Association member and the position
shall be ratified by majority vote of the Board. During the meeting, I appointed Brian
Lewis and the Board ratified the appointment by a vote in the majority. Brian’s term will
expire at the end of 2012.

Please welcome Brian as your new POA Vice President. I am confident in his ability to
represent our Association. Brian and I have had numerous conversations and we are
excited about the future and direction of our organization. Please continue to support us
as we transition in our roles as leaders of this association.

As Brian has taken the seat of Vice President, this leaves a vacancy at the seat of the
Investigations Representative. I will be appointing a member to this seat in the very near
future. Also, Detective Frank Macomber has taken the Investigations Representative seat
that was recently vacated by Detective Mike Hamrick. Frank’s term will expire at the end
of 2011.

Moving on to news regarding the hybrid schedule. I, along with other POA Board
members, met with Assistant Chief Garcia regarding the hybrid schedule. As a result of
our meeting, the Chief’s will continue discussions regarding their desire to proceed with
the hybrid schedule. They will notify the POA Board of their decision. Expect updated
information in the near future.

Finally, some of you may not be aware that the “Members Only” area of the POA
website is up and running. Recently, we have been adding information to this area.

As time goes by, there will be additional information available in this area. I expect in the
future, this will be an invaluable resource to our members.

If you have not registered for the Members Only area, please go to the website and click
the Members Only tab. Then, click the Membership Application link and complete the
form. If you have any questions, you can call Teresa at the POA office.

As always, I encourage you to contact me or any other Board member with your
questions or concerns. We are here for you. Most importantly, be safe.

Steve