The New Shelby County Government Is Looking Like the Old City Government

September 4, 2018

The New Shelby County Government Is Looking Like the Old City Government

 

The new Shelby County government is just beginning and we all wish them well. We all want and need low cost and efficient government to furnish fire and police services, bring us our utilities, repair our roads, run our legal system, furnish medical services and educate our children.

 

Shelby County government has been well run for many years as compared to the City of Memphis. Let me give you several examples.

 

In 2007 the Governmental Accounting Standards Board issued GASB 45 which required that other post-employment benefits (OPEB) must be recognized as the benefits earned rather than as they are paid. The county in 2008 made certain positive changes as shown on the attached document. The City of Memphis did nothing until 2017 when they made changes to the benefit plan. The County OPEB unfunded liability went from $319 million in 2008 to $46 million today. The City of Memphis did nothing until 2017 when the benefit changes brought the unfunded liability from $857 million to $417 million, due to plan benefit changes.

 

The City of Memphis pension board regularly approves line of duty liability at 10 times the rate per employee as the County and the MLGW. This has led to an annual cost for LOD disability for the city of Memphis of some $17 million dollars per year, 10 times that of the County and the MLGW. The problem is the makeup of the pension board membership that grants these LOD disability pensions.

 

And finally, the new County pension scam allowing benefits for life with 12 years of service looks much like the January 2001 pension scam of the City of Memphis. That disastrous action allowed elected and appointed employees with 12 years of service to receive their lifetime pensions immediately.

 

It is noteworthy that the new county resolution passed with an 8-2 majority. Commissioner Walter Bailey sponsored the resolution saying that “since elected officials with term limits shouldn’t be penalized for their public service”. Commissioner Walter Bailey was term limited after his first two 4 year terms and then reelected later after laying out for a term for another term.

 

Now some politicians want to do away with term limits. The above scams only make me want to tighten terms limits so that term limited politicians do not twist the rules to feather their nests. We need term limits pension scam rules not only locally but also for the US House of Representatives and for the US Congress.

 

What are your thoughts?

Leave a Reply