Supervisors Seeking Answers to Pension Problem

Folks often think of Marin County as an affluent suburban community, but with the economy still struggling to recover, could your town be forced to file for bankruptcy?

There hasn't been any talk of impending bankruptcy, but Larkspur and Corte Madera, like other cities, are trying to avoid a potential financial disaster. The public employee pension system in many towns and cities, from San Jose to Vallejo, has been described as "broken" by financial experts. There is open concern that many municipalities couldn't afford the payments under the current pension system.

The Marin County Board of Supervisors will host an educational forum on public employee pension reform Tuesday, April 3, at 6 p.m. Larkspur City Councilman Larry Chu, who will be one of the featured speakers at the meeting, has been one of the go-to sources on the issue for the Marin County Council of Mayors and Councilmembers.

"For us at a municipal level, it's purely a financial issue," Chu told the Corte Madera Town Council recently. "The issue is that our city governments, and what we're seeing at the state level as well, we'll see severe financial distress, if not bankruptcy. There'll be severe financial distress before we get to the point that (the market) becomes positive, if it ever does."

Chu has been at the forefront of the search for a new, more sustainable pension system.

The problem, Chu says, "was brought about mainly because of the large calculated unfunded liabilities that had come about because of inadequate returns in pension systems and investments."

The solution? Cities and public employees will need to find a middle ground that could involve renegotiating health benefit plans and changing the retirement age.

"It's such a complex issue that all you get are sound bites," Chu said.

The Board of Supervisors has engaged state legislators and the California State Association of Counties to promote pension reform efforts. The Board has also publicly supported the Governor’s proposed plan for statewide pension reform.

“Marin County government is committed to working until we have restructured our pension program to be sustainable over time, while also allowing us to attract and retain quality workers. Public participation will help us in this effort” said Board President Steve Kinsey.

The meeting will include:

• An explanation of pensions currently offered to Marin County employees
• A review of county government’s ability to fund pensions now and in the future
• An update on the Governor’s proposed pension reform plan
• Varying options to reduce the County’s future pension liabilities
• Opportunities for audience questions and comments throughout the evening

Panelists will include:

• Richard Gillihan - California Department of Finance
• Matthew Hymel - Marin County Administrator
• Denis Rice - former member Marin County Board of Supervisors
• Larry Chu – Member of the Larkspur City Council
• Phillip Thomas - Marin Association of Public Employees
• Gregg Adam – Partner with Carroll, Burdick, McDonough, LLP

The event is at 6pm on Tuesday, April 3, 2012 at the Osher Marin Jewish Community Center, located at 200 North San Pedro Road, San Rafael. Parking at the Community Center is limited; however, overflow spaces are available across the street at the Venetia Valley Elementary School. Light refreshments will be served at the meeting. While open to any interested members of the community, the County appreciates the courtesy of an RSVP to help ensure there will be adequate food, seating and handouts. 

Tp RSVP or to get more info, contact Janis West in the County Administrator's Office at 415-473-6358 or jwest@marincounty.org.