Santa Clara County Grand Jury
• 2011-2012
• Agency Response
Response to:
City of Morgan Hill
An Analysis of Pension and Other Post Employment Benefits*
Published: June 30, 2013
3 pages
⚠️ Aviso de traducción: Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and recommendations have not been extracted yet.
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Agency Responses 1
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.
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City of Morgan Hill
June 30, 2013
•
3 pages
• 9 responses
View Details ▾
9 responses to findings and recommendations
R1
The Cities should adopt pension plans to extend the retirement age beyond current retirement plan ages. City of Morgan Hill response: Agree with recommendation. The City Council has already adopted a policy of negotiating with our three bargaining units an increased retirement age. The City's Long-Term Labor Policy, Principles and Strategies say, "The City will strive to implement a two-tiered retirement system [one component of which is almost always an increased retirement age] and explore the...
Response: Unknown
Score: 0
above. Recommendation 2B: not applicable
Recommendation 2C: All Cities' new tier of plans should close the unfunded liability burden they have pushed to future generations. The new tier should include raising the retirement age, increasing employee contributions, and adopting pension plan caps that ensure pensions do not exceed salary at retirement. City of Morgan Hill response: Agree with recommendation. See
R2A
Santa Clara County and the cities of Cupertino, Los Altos, Monte Sereno, Morgan Hill, Mountain View, San Jose, Santa Clara, Saratoga and Sunnyvale should work to implement second tier plans. City of Morgan Hill response: Agree with recommendation. See response to
Response: Unknown
Score: 0
Agree with recommendation. See response to
R2B
not applicable 1
Response: Unknown
Score: 0
Agree with recommendation. See response to
R2C
All Cities' new tier of plans should close the unfunded liability burden they have pushed to future generations. The new tier should include raising the retirement age, increasing employee contributions, and adopting pension plan caps that ensure pensions do not exceed salary at retirement. City of Morgan Hill response: Agree with recommendation. See response to
Response: Unknown
Score: 0
Agree with recommendation. See response to
R3
The Cities should adopt policies that do not permit Benefit enhancements unless sufficient monies are deposited, such as in an irrevocable trust, concurrent with enacting the enhancement, to prevent an increase in unfunded liability. City of Morgan Hill response: Agree with recommendation
Response: Unknown
Score: 0
Agree with recommendation
R4A
The Cities should require all employees to pay the maximum employee contribution rate of a given plan. City of Morgan Hill response: Agree with recommendation. The City already requires all public safety employees to pay the maximum employee contribution rate (9%) of the 3% @ 50 Safety Plan, and all employees represented by the Community Services Officers Association, and all management employees, to pay the maximum employee contribution rate (8%) of the 2.5% @ 55 Miscellaneous Plan. For the rem...
Response: Unknown
Score: 0
Agree with recommendation. The City already requires all public safety employees to pay the maximum employee contribution rate (9%) of the 3% @ 50 Safety Plan, and all employees represented by the Community Services Officers Association, and all management employees, to pay the maximum employee contribution rate (8%) of the 2.5% @ 55 Miscellaneous Plan. For the remaining employees, the City Council has already adopted a policy of negotiating this arrangement; the Council's Long-Term Labor Policy, Principles and Strategies assert, "The City will strive to require employees to pay 100 percent of...
R4B
The Cities should require employees to pay some portion of the Past Service Cost associated with the unfunded liability, in proportion to the Benefits being offered. City of Morgan Hill response: The City's Long-Term Labor Policy, Principles and Strategies do not specifically address this issue, but the City Council will consider it in light of the Governor's pension reform proposal that would have public employees pay at least half of the normal cost (not the unfunded liability) of their pensio...
Response: Unknown
Score: 0
The City's Long-Term Labor Policy, Principles and Strategies do not specifically address this issue, but the City Council will consider it in light of the Governor's pension reform proposal that would have public employees pay at least half of the normal cost (not the unfunded liability) of their pension benefit going forward in time (not back).
R5
The Cities should immediately work toward implementing policy changes and adopting measures aimed at making full OPEB ARC payments as soon as possible. City of Morgan Hill response: Agree with recommendation
Response: Unknown
Score: 0
Agree with recommendation
R6
not applicable <u>Recommendation 7</u>: The Cities should transition from defined benefit plans to defined contribution plans as the new tier plans are implemented. City of Morgan Hill response: Agree with recommendation to the extent it applies to the grand jury's other recommendation that "public employees must contribute a greater share towards their benefits," but without necessarily abolishing defined benefit plans, which may be useful to the City for recruitment and retention. The City's L...
Response: Unknown
Score: 0
Agree with recommendation to the extent it applies to the grand jury's other recommendation that "public employees must contribute a greater share towards their benefits," but without necessarily abolishing defined benefit plans, which may be useful to the City for recruitment and retention. The City's Long-Term Labor Policy, Principles and Strategies already assert that "The City will strive to pay a fixed amount towards employee retirement to limit exposure to volatility of the market" and "The City will...explore the option of a 'hybrid' system that uses both defined benefit and defined con...
* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.