Expert Warns Santa Rosa About Pension Costs
An insurance expert told Santa Rosa’s Pension Reform Task Force Thursday that the city rising pension contributions alone will not be enough to dig out of the hole by $ 101,000,000 richer benefits and steep investment losses.
Instead, the city should consider using the California Public Employees Retirement System over the millions of city pays annually to finance the pensions of current and former employees.
“What it means is that you pay CalPERS the amount you ask to pay, but really not good enough,” John Bartel, an actuarial consultant, told the 11-member group during a three-hour session that was heavy on data and light on good news for the city.
The city is already sending $ 3,000,000 to CalPERS more than expected next year. This year, the city’s total pension costs rose $ 23.5 million, said chief financial officer Laurence Chiu. Bartel, the group warned that the city suffered severe financial problems with its pension faces. “You will hear me say some things you might not want to hear all,” said Bartel.
The task force is charged with giving the council a number of options for reigning in pension costs, which then rise sharply as the number of retirements increase, retirees are living longer and investment losses of 2008 and 2009 stock market collapse require the city to encourage his contributions.