April 25, 2016
Brilliant At The Basics
Our new Mayor has come out with his proposed 2017 City budget. I have not had a chance to study it closely yet but I will in the next few weeks. However a recent open records request confirmed what I suspected was happening.
Read the CA article of April 7, 2015. In a CA article (April 7, 2015) our present Mayor Strickland questioned the possibility of Sammons doubling his City pension. In my recent open records request to the City of Memphis I asked for current pension payments to retired City of Memphis employees. I wanted to compare the current pensions to past pensions. Sure enough there was Jack Sammons receiving an annual pension of $68,457.36, up from his previous pension of $34,960.56. Doubled!!!
How has this happened? Apparently there is a provision in the City of Memphis pension ordinance that allows the pension to be recalculated based on the highest 12 month salary overturning any fiscally responsible actuarial calculations. This is a public employee scam that needs to be corrected. Here is what is done at the County government. Plan A and Plan C both compute pensions based on the employee’s highest 36 consecutive months of earnings. The new Plan D computes pensions based on the highest 60 consecutive months of earnings. Plan D was effective July 1, 2011 and has proven to be a less costly plan because of the earnings calculation plus the lower years of service multiplier and the retirement age requirement.
Then there is he abuse of the City of Memphis pension board of LINE OF DUTY DISABILITY. This is costing the City up to $14 million per year. The rate of line of duty disability approval at the City is ten time higher per active employee than the MLGW and Shelby County Government. These built in actuarially unsound pension provisions need to be changed as part of the Brilliant Basics.