Triple Threat Could Drain County Retirement Fund

Demands from two county employee groups and a looming court decision on retirement benefits could leave the county facing a $300-million payout, drastically depleting a now plush retirement fund.

The result would mean a $20-million dip into next year’s general fund to replenish the retirement trust, officials from the county’s retirement office said.

“We’re just going to have to look at all of these things very carefully; otherwise we could bankrupt the county,” Supervisor John Flynn said. “And counties do bankrupt, you know.”

The county’s largest union submitted a report to supervisors in February asking for a cost-of-living raise on pension benefits for some 3,600 employees. Service Employees International Union leader Barry Hammitt said he intends to push for approval of the raise this month. The price tag would be $120 million, according to union officials.

That demand comes as the Ventura County Deputy Sheriff’s Assn. negotiates to take advantage of a state law raising pensions for public safety employees. The benefit increase, which could mean as much as a 50% hike for some sworn employees, is expected to run as high as $100 million.

And in a few months, the state Supreme Court is expected to rule on a case that could force the county to pay $80 million in additional benefits to retired county employees.

The total would eat up most of a $368-million surplus in the county’s trust fund account. That account is so strong now that supervisors did not have to contribute any money to the fund during last year’s tight budget talks when supervisors were looking to cut $8 million. A $20-million contribution to the retirement fund would have a significant effect on county spending for other programs, said Bert Bigler, deputy chief administrative officer.

“Just think, that’s more than double the size of the reductions we went through to get the budget to balance last year,” Bigler said. “And that caused a hiring freeze; we eliminated vacant positions.

“If it’s a priority to board members, then it will be done,” Bigler added. “But they have to ask: at what cost to the county?”

Board members could opt to approve only one of the pension-enhancement plans, either the Service Employees International Union’s or the Ventura County Deputy Sheriff’s Assn.’s.

Both unions’ leaders are already making the case for their respective sides.

Glen Kitzman, president of the deputies’ union, said its program, which entitles deputies at age 50 to retire with 3% of their income for each year of service, is necessary to stay competitive in deputy recruitment.

The Ventura and Santa Barbara police departments have already adopted the program. The Oxnard Police Department has made plans to adopt the increase next year, and Simi Valley has put into place a 3% at age 55 plan.

Hammitt said the greater need lies with the 3,600 nonsworn union members because they are the only ones in the county system who are not receiving a cost-of-living raise with their pensions. Less than 15% of nonsworn personnel--everyone hired before 1979--receive the cost-of-living benefit.

Hammitt said that if the sworn deputies are successful in their push to get the retirement benefit, it will hurt efforts to get nonsworn employees a cost-of-living adjustment.

Supervisor Kathy Long said it may be up to the board to make a tough decision and choose one request over the other.

“Then you have to look at balance and equity,” Long said. “As broad a base of employees as possible should have a fair retirement. . . . We have to look at who has been in a position of inequity for a long time.”