HomeMy WebLinkAboutTC Res 2011-10-19 (2)RESOLUTION NO. 49-2011
A RESOLUTION OF
THE TOWN COUNCIL OF THE TOWN OF TIBURON
IN SUPPORT OF PENSION REFORM EFFORTS
WHEREAS, local government pension reform has been at the forefront of public debate
across the nation; and
WHEREAS, addressing long-term pension liability is a primary concern to local
agencies across the State; and
WHEREAS, due to limited options via the State Legislature to date, many agencies have
adopted tiered pension systems in an attempt to reduce long-term pension liability; and
WHEREAS, the Town Council believes it would be appropriate to create and adopt a set
of guiding principles for the Town with respect to its local pension systems.
NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of
Tiburon does hereby establish the following guiding principles and practices:
1. Public Disclosure - All public pension actuary reports shall be made accessible to the
public via the public counter and the Town website.
2. Principles Against Pension Spiking - Pension spiking is a process whereby compensation
to an employee is significantly inflated immediately preceding an expected retirement in
order to provide a larger pension than one would otherwise be entitled to receive.
a. Consider expanding the use of formulas using the "average of the highest three
years" for determination of final compensation.
b. Work with CalPERS laws and policies related to curbing pension spiking, to
include the support of employer audits to work with agencies to resolve
compensation audit findings.
3. Principles for Risk/Reward Sharing
a. To the extent possible, consider the adoption of policies and support of legislation
to share the risk and reward associated with investment rate volatility and other
pension system elements between the Town and the employee.
4. Rate Surplus Contributions
a. Avoid use of any Town "pension surplus", should one exist again in the future as
it has from time to time in the past, to defray the annual net normal cost of the
Town's pension system, except in the event of a declared Town fiscal emergency.
5. Economies of Scale and Workforce Restructuring
a. Consider policies that structure the workforce to achieve larger economies of
scale, consider consolidation of services where financially and politically feasible,
and continue evaluation of private versus public sector service provision where
doing so would serve the long term needs of Town residents.
6. Employee and Employer Rate Contributions
a. Maintain the policy of employee rate contributions at 100% of employee cost.
7. Pension System Tiers
a. To the extent fiscally viable and practical for the Town, consider the adoption of
retirement tiers to reduce long-term financial risk.
b. Consider appropriateness of returning employees to the Social Security system
combined with a defined pension contribution plan, versus a defined pension
benefit plan, as a means of financial risk management for the town.
8. Financial Restructuring
a. To the extent fiscally viable, consider debt restructuring for any long-term
underfunded pension liability.
9. Support for Statewide Legislation and Reform
a. Consider support for statewide legislative changes designed to create hybrid
pension systems for public employees, to include the development of revised
formulas altering retirement percentages and extending the maximum payout age
under adopted formula.
b. Consider support for statewide legislative changes designed to allow for the
establishment of a maximum benefit caps for employees.
c. Consider support for statewide legislative changes that create maximum allowable
cost of living adjustments to pension programs.
d. Consider support to improve accountability and transparency in reporting of
financial liabilities with respect to the pension cost obligations.
PASSED AND ADOPTED at a regular meeting of the Tiburon Town Council held on
October 19, 2011, by the following vote:
AYES: COUNCILMEMBERS: Collins, Fraser, Fredericks, O'Donnell, Slavitz
NOES: COUNCILMEMBERS: None
ATTES
Diane Crane Iaco Town Clerk
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APPROVED: