Unions Say County Owes Fund $100 Million

Already tense labor relations turned even frostier Friday when a coalition of Ventura County unions filed a claim saying county government owes more than $100 million to an employee retirement fund.

The claim alleges the county has failed to make its share of contributions to the Ventura County Employees’ Retirement System since 1996, even though it was required to do so. As a result, millions of dollars that could be used for expanded retirement benefits are not available, states the claim filed against the county by Santa Monica labor attorney Stephen H. Silver.

“State law provides that both the county and employees must make contributions to the retirement fund,” Silver said. “But the county has not done that for several years.”

County Counsel Frank Sieh said the unions’ allegations are wrong. The county is not obligated to make contributions once the retirement fund has enough money to cover the cost of former and current employees’ benefits, Sieh said.

Not only is the retirement account fully funded, it has a surplus of over $300 million, Sieh said. Therefore, the county doesn’t owe a penny, he said.

Supervisors John Flynn of Oxnard and Frank Schillo of Thousand Oaks said they agree with Sieh. Flynn called the claim a “labor tactic” intended to put pressure on the Board of Supervisors to agree to union demands for better pay and benefits.

Schillo went even further, accusing the unions of trying to mislead the public with a “frivolous” claim. “It’s an over-funded plan. That means there’s too much money in there,” said Schillo, who sits on the retirement board. “You can’t fund more than 100%.”

The county has 45 days to respond. If a settlement is not reached, Silver said, his office will likely file a lawsuit.

Tension between the county’s two largest unions and the Board of Supervisors has escalated in recent weeks over stalled contract talks. Service Employees International Union, Local 998, representing 4,200 nonpublic safety employees, and the union representing 750 sheriff’s deputies have been at odds with the county over pay and benefit packages.

Both groups say they should be paid wages that are competitive with workers doing the same jobs in neighboring counties. Some SEIU members have fallen up to 27% behind in wages compared with other areas, according to the union and county. Salaries for deputy sheriffs are on par with surrounding law enforcement agencies, but union leaders say they could fall behind.

Another sticking point is the unions’ demand for additional retirement benefits.

County executive Johnny Johnston has maintained that the county cannot afford to cover the cost of the added benefits for both groups.