District 4 candidates gave quick but varied responses on pension issues at a packed candidates night—the first of the election season—last Wednesday. The event, hosted by a group critical of the county’s unfunded pension liabilities, was moderated by Marin Independent-Journal political columnist Dick Spotswood. Candidates fielded questions on a variety of issues, including traffic and pesticides, but the host group, Citizens for Sustainable Pension Plans, posed three questions to suss out what candidates in races across three districts think about county
pensions.
The issue has been the subject of grand jury reports and has come to the fore in recent years. County officials said recently that the unfunded pension liability—including pensions, retiree health benefits and bond debt—was down to $638 million, compared to $881 million four years ago, due to better than expected investment returns and discretionary allocations. In 2013, Moody’s Investors Service upgraded the county’s rating to AAA because of what it called the county’s “proactive” approach on fiscal issues like pensions.
But that year, Citizens for Sustainable Pension Plans estimated a higher unfunded pension liability in a report titled “Pension Roulette,” in which it used more conservative estimates for stock market performance than those used by the county. Responses at last week’s event were brief; because of the crowded arena, which included eight District 4 candidates and five candidates in the other two races, candidates each got about a minute to answer each question and were encouraged to give a simple “yes or no” answer if possible.
In the District 4 race, Al Dugan of Novato appeared the most critical of pensions. He was the only candidate to support the formation of a citizens oversight committee to look at the issue; he also said the county might need to “adjust” health benefits for pensioners who receive over $100,000 a year.
Novato rancher Dominic Grossi said the county should “start talk about pulling back” on health benefits for those who make over $120,000 a year. But, like other District 4 candidates, he dismissed the idea of an oversight committee.
Most candidates said it was the job of the supervisors to make pension decisions. “We should elect people in the office that you trust,” said Novato resident Tomas Kaselionis, who also pointed out that the cost of living in Marin is quite high. Alex Easton-Brown of Lagunitas, on the other hand, dismissed an appointed committee on the basis that those committee members would be the supervisors’ “stooges.” And Wendi Kallins of Forest Knolls said it would be “inappropriate” to involve the citizenry in collective bargaining.
As far as curbing health benefits, Mr. Staley said reducing health benefits would amount to “taking their lunches from them,” while Ms. Kallins made a distinction between upper-management and public-safety employees, the latter of which “put their lives on the line” and may suffer health issues related to their jobs.
In a column published after the event, Mr. Spotswood critiqued District 4 candidates’ performances specifically, calling the hopefuls less informed on pension issues than candidates from other areas and calling some of their answers “vague or plain wrong.” For instance, Mr. Staley had said the average retiree makes just $30,000 to 40,000 a year. But Mr. Spotswood argued that figure included people who work for relatively few years.
According to transparentCalifornia.com, in Marin the average pension and health care benefits for “full career retirees,” or those who work for 30 years or more, is about $97,765. According to data collated by Citizens for Sustainable Pension Plans, in 2014 about 12 percent of Marin County retirees—or about 250—make $120,000 or more in pensions and benefits.
Mr. Spotswood argued that the county could reduce the health benefit portion of the liability by requiring employees to pay into Medicare and then covering those premiums once retirees turn 65.