Rising oil prices impact Supervisors' pocketbooks

September 21, 2007 16:00 by Ryan

Rising transportation costs as well as the cost of a barrel of oil appear to be at least partly to blame for our Board of Supervisors' decision to increase their pension contribution by 30 percent (while increasing other benefits) on the very day they moved to decrease public safety pensions by 33 percent.

Peggy Lowe's story, "Supervisors criticized over pensions," apparently struck a nerve. In an email, Supervisor Moorlach wrote, "The headline for the article begs for a response, as the article does not provide the full story. Transportation costs have increased. Oil is trading today at $82 a barrel."

The move was defended, in part, to maintain a benefit and pay differential between the county's appointed executives and elected officials. One wonders if there is some concern over at the Hall of Administration over the county's ability to recruit qualified elected officials in the future, thus the need for higher pay and benefits. Such a concern is surprisingly similar to the Sheriff's Department's challenge to recruit qualified law enforcement personnel.

The debate over appropriate pay and benefits will continue to grow. Especially as retired county workers see their pensions and benefits cut. Beginning January 1, 2008, retired county workers will see increases in their monthly medical premiums rise by, in some cases, about $1,000. Here's the spreadsheet on insurance rates.

Keep in mind, the supervisors don't pay a premium for their medical benefits. Their dependents are also covered.

The Board held a discussion on retired medical benefits on September 11th. Rising transportation costs and the cost of a barrel of oil affect these individuals too. But the county continues to move forward with cutting their benefits. And it has an impact:

Peggy Lowe writes:

"The Orange County Board of Supervisors sweetened their own retirement plans on the very day they made their first move to cut the pensions of sheriff's deputies.

Just minutes after approving the increase to their own retirement savings plans July 31– along with those of other elected officials and county executives – the board began discussions on Supervisor John Moorlach's plan to slash the retired deputies' benefits by a third.

The five supervisors upped the biweekly contribution to their 401(a) accounts – the government's version of a 401(k) defined contribution plan – from 6 percent to 8 percent[...]and increased their monthly car stipend to $765."

Yesterday, she issued a slight correction here. It's a moot point, however. The Supervisors receive a salary. Like any salaried worker, they aren't required to punch a timecard. They receive the same pay whether they show up healthy or stay home ill.

Let me be clear, this blog entry is not meant as a debate over benefits and who receives more or less. It is, however, meant to shed some light on this growing debate, the decisions being made and the excuses for those decisions.

Here's some OC blog reaction to Peggy's story:

The Liberal OC - Moorlach you spiked your own pension, get over it, and this.

OC Blog - Moorlach Responds To 'Hypocrisy' Charge

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