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Supes Cutting New Hire Pensions For Pay Raises

The supervisors approved the granting of more than $730 million in raises over four years, according to a story published by the Press-Enterprise Sunday.

The Riverside County Board of Supervisors agreed to salary hikes for county employees recently, in exchange for changes to the pension system.

The supervisors approved the granting of more than $730 million in raises over four years, according to a story published by the Press-Enterprise.

However, in order to make this happen, new hires will now receive less in pension benefits – and current employees will have to pay more toward their retirement funds, the P-E reported.

The county – which still closes its offices on Fridays in a money-saving move instituted when the country plunged into a recession – has lost $230 million in tax revenue since 2007,  according to published reports.

This year, the county has laid off 229 employees in an effort to balance the 2013 fiscal budget and has not ruled out the possibility of more layoffs in future, the P-E reported.

The county’s pension system now owes $4.7 billion to current and future retirees and lists assets worth $4.2 billion -- already running at a deficit -- published reports stated.

According to the newspaper report, UCLA Prof. David Lewin said pension reforms to counter pay raises are usually done in times of economic prosperity, not when a county is cash strapped.

The P-E reported that Barbara Olivier, the county’s human resources director, said it was a challenge to achieve pension reform because it is illegal for a county to remove an employee benefit already in place.

Ern Batavia July 09, 2012 at 05:26 PM
Other Peoples' Money.....it's the bureaucratic way - period.
Snowcap July 09, 2012 at 07:26 PM
"...The county – which still closes its offices on Fridays in a money-saving move..." How does it save money? They are not getting paid less, they are just working less. That's all. Must be nice to 'vote' yourself raises, while the rest of the people are staring at the lining of their pockets. Disgusting. All these government jobs should be none-paying, volunteered based. Then we'll see who are the real workers.
ATC July 09, 2012 at 10:24 PM
The rank & file workers that are not working on Fridays DID take pay cuts; they're called furloughs, and they still earn the same hourly wage but work fewer hours...that means a smaller paycheck. The county also saves by having the buildings dark on those Fridays; no lights, heating/cooling, office equipment, etc.
T 22 July 09, 2012 at 10:42 PM
I figured it was that way Gary. State rank and file have been doing the same thing, actually off and on for years. At one point a couple years ago, they had three furlough days per month, and that lasted for 18 months and went away over a period of time.But they still have jobs, so can't complain. Those that aren't involved in the system don't usually know this. State rank and file will be starting furloughs again in August.
ATC July 09, 2012 at 10:56 PM
Yup, as with private corporations, it's usually the guys at the bottom that get s__t on while the top gets richer.

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