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For City to Stave Off Bankruptcy, There Must Be Sacrifices

Regarding the unions; you’re right they've taken a stand and it's their job to defend it. My disappointment has always been City Management or should I say the lack of professional management. Like it or not for many bargaining sessions the City said it was broke, but offered pension benefits in lieu of raises. If they were broke the offers never should have been made. I find it hard to fault workers trying to improve their lives to turn down a raise, even if it's back loaded to pension compensation. The problem, as we know now, is management ALSO back loaded it to the taxpayers. The politician were either afraid, or unwilling, to pass along those costs to the taxpayer for fear of retribution, i.e. getting voted out of office. Or worse, which was probably the case, knew they'd be out of office and NOT accountable. Thus their problems were left to some poor smucks in the future to deal with it. It’s now, only in hindsight, we can clearly see what unethical decisions were made. You absolutely correct, everyone must share the pain to get out of this mess, it should not be solely borne on the backs of the employees. With regards to your comments about the cost neutral DROP program, what's there to say? For years one actuarial says one thing, then later a new actuarial with the benefit of years of data not available to the first, says, nope the first one was wrong. Honestly, I believe actuarial calculations are akin to voo-doo mathematics. For example, we have recently seen new “methods” of projection the pension debt. The result, a reduced the UAAL and by a substantial amount. So which one is correct? I don’t know. In another example, the City’s newest actuary, Mr. Esuchanko, says SDCERS DOES NOT HAVE A PROBLEM funding all of its obligations. Heck, Mr. Aguirre even used Mr. Escuchanko as his expert witness in his failed litigation against SDCERS. My point is NO ONE can predict the future, they only make projections based upon past experience and assumptions. But who could have predicted 9-11 and the financial hit our entire economy took as a result. Those losses combined with the City’s deliberate underfunding of its pension obligation are the causation factors for the bulk of the UAAL. But the numbers, for the public safety employees’ purchase of service credits, have remained consistent, showing a profit for SDCERS over several actuarial audit/projections. In fact those purchases were cost neutral as they were at substantially cost then purchases made by so-called general members.
— October 26, 2007 9:41 a.m.

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