League of Women Voters of California Education Fund
	Monterey County, CA November 4, 2008 Election
	Measure Y City Employee Retirement Plan City of Pacific Grove Majority Approval Required Pass: 4,105 / 56.03% Yes votes ...... 3,221 / 43.97% No votes See Also: Index of all Measures

Arguments For Measure Y

Arguments Against Measure Y

The CalPERS defined benefit plan is not only expensive but it also burdens the City and taxpayers with unknown future costs. Public safety employees who work 30 years receive 90% of their highest pay guaranteed for life. And by setting the retirement age at 50 for public safety and 55 for general employees, this plan has also created serious difficulties in retaining and recruiting an experienced workforce. As a result of CalPERS investment losses beginning in 2000, the taxpayers in Pacific Grove received a bill for $19 million to cover our share of these losses, yet the City has no real say in how retirement funds are invested. The City has had to cut services to the bone, has a low reserve account, and now has to pay $37 million over 30 years to pay off its debt to CalPERS. Including this debt, the current retirement cost for the City for public safety employees is about 34% of salary. The CalPERS investment fund value has dropped over $21 billion between December, 2007 and July, 2008. By replacing CalPERS with a defined contribution plan (like a 401), the City will be able to stabilize its costs and remove future risk. Existing employees will retain their accrued CalPERS benefits and be able to accrue additional benefits through a defined contribution plan and Social Security for as long as they are employed. Employees will assume responsibility for and have control over their own retirement. This will enable the City to control current costs and eliminate future unknown costs. The City will be better able to provide stable employment for staff and a greater level of service to citizens. Study the facts. Vote YES on this measure. /s/John M. Moore    Registered Voter /s/Kenneth B. Wurzburger   Registered Voter /s/Annette B. Corcoran   Registered Voter /s/Frances M. Grate   Registered Voter in Pacific Grove Rebuttal to Arguments For Here are the facts: As police officers and firefighters we lay our lives on the line every day. It is inevitable that our families face the risk that we may become severely injured or die in the line of duty. This measure gambles with our family's future. A defined benefit pension provides death and disability benefits to family members of police officers and firefighters who fall in the line of duty - a defined contribution plan does not. The proponents fail to tell you that CalPERS is the largest and most successful pension system in the country and over the last 5 years its investment portfolio value has grown by over 94 billion dollars. Through its economy of scale and investment expertise, CalPERS' investment returns fund 75% of employee benefits - the balance is funded equally by employee and the employer contributions. Furthermore, the City has failed to provide any real proposals for a replacement plan, much less show evidence that such plans will be less costly. This measure seeks to punish the hardworking employees of Pacific Grove by exchanging a secure retirement plan for a risky defined contribution plan that will harm the benefits of current workers. The City's fiscal mismanagement should not be remedied on the backs of police officers and firefighters. Let's not lose our best and brightest police officers and firefighters due to a short-sighted plan that hurts all of us. Protect our neighborhoods. Preserve our public safety. NO on Measure Y. /s/Ami Lonsinger   President, Pacific Grove Police Officers Association /s/Daniel Givvin   Treasurer, Pacific Grove Firefighters Association /s/Emilo Alcaraz   Pacific Grove General Employees Association

CalPERS is the standard retirement plan for city police officers, firefighters and public employees across California. Under the CalPERS plan, the average employee retires with a pension of $1,881.00 per month. In place of the CalPERS system, Measure Y would impose a risky and inferior plan on Pacific Grove police officers, firefighters, and all other employees. There is little doubt this will make it harder to recruit and retain quality employees. Pacific Grove is already virtually alone in offering almost no health coverage. Take away retirement security too, and we simply will not be able to get or keep quality personnel. Police and firefighters live, on average, shorter lives than the general population, so retirement security is paramount in public safety. Even more chillingly, the proposal effectively eliminates death and disability benefits for the families of police officers and firefighters killed in the line of duty. Under the City's proposal, our surviving spouses and children will receive NO guaranteed monthly pension. Police officers and firefighters cannot be expected to place their lives on the line without a guaranteed survivor's pension for family members in the event they are killed in the line of duty. Measure Y's supporters offer no guaranteed savings to taxpayers. Their alternative recruitment strategy is to promote taxpayer financed "double-dipping" by CalPERS retirees (Source: Fair Share Pacific Grove). Your city police officers, firefighters, and public servants are not responsible for Pacific Grove's budget problems. We work hard on your behalf and we pay our share of retirement costs, even when our employers do not. Please join your public servants in voting NO on Measure Y. /s/Ami Lonsinger   President, Pacific Grove Police Officers Association /s/Daniel Givvin   Treasurer, Pacific Grove Firefighters Association /s/Emilo Alcaraz   Pacific Grove General Employees Association Rebuttal to Arguments Against Opponents minimize the cost of our retirement benefits when they cite $1881.00 per month as the average CalPERS benefit statewide: a corporal in the P.G. police dept. would be entitled to $7055.00 per month, for life, a Captain, much more. Employees are not the main cause of our budget problem, but mismanagement by CalPERS of the retirement system is: measure Y gets rid of CalPERS. The idea that the City won't be able to retain or recruit employees is simply a scare tactic. In fact it is excessive retirement costs that have caused most reductions in staff and services, including fire and police. There will always be quality people willing to serve the public for a responsible wage and fair benefits. The City has not proposed to eliminate survivor benefits; in fact a defined contribution retirement plan is an inheritable asset. The City can and will provide fair and responsible employee compensation and benefits with a defined contribution plan. By this means the City will insure its long term financial health, and provide stable employment, something it cannot promise now. The simple truth is that the current defined benefit retirement plan is not sustainable. Cities all over California are struggling with the rising costs of public employment, primarily due to guaranteed benefit costs that are out of control. We need a retirement system that is fair to public employees but also fair to the public. Ignore scare tactics. Vote YES on Measure Y. /s/John M. Moore    Registered Voter /s/Kenneth B. Wurzburger   Registered Voter /s/Annette B. Corcoran   Registered Voter /s/Frances M. Grate   Registered Voter

Full Text of Measure Y

RESOLUTION NO. 08-045 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE CALLING A SPECIAL MUNICIPAL ELECTION FOR THE PURPOSE OF SUBMITTING AN ADVISORY MEASURE ON THE BALLOT AND REQUESTING THE BOARD OF SUPERVISORS OF MONTEREY COUNTY PROVIDE FOR THE CONSOLIDATION OF THIS ELECTION WITH THE ELECTION TO BE HELD ON NOVEMBER 4, 2008 WHEREAS, the City of Pacific Grove ("City") continues to explore cost reduction strategies for current and future proposed budgets; and WHEREAS, the City currently provides its employees with a defined-benefit retirement plan through the California Public Employee's Retirement System ("Cal PERS"); and WHEREAS, the City could, in the alternative, terminate participation in that defined-benefit retirement plan, and instead provide its employees with a defined-contribution retirement plan similar to an IRS 401 (k) retirement plan; and WHEREAS, the City Council, seeks the advisory opinion of those who choose to cast ballots on this issue; and WHEREAS, there is a statewide election scheduled for November 4, 2008, that will be conducted in Monterey County by the Monterey County Registrar of Voters; and WHEREAS, the municipal election for selection of three (3) council members and the mayor shall be consolidated with the statewide election scheduled for November 4, 2008; and WHEREAS, the City, as a Charter City, holds authority to place an advisory measure on the ballot; and WHEREAS, this Resolution is exempt from the California Environmental Quality Act ("CEQA"), Public Resources Code section 21000, et seq., as it can be seen with certainty that there is no possibility that the activity authorized herein may have a significant effect on the environment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE: SECTION 1. The foregoing recitals are adopted as findings of the City Council as though set forth fully herein. SECTION 2. A municipal election of the City of Pacific Grove shall be held in the City of Pacific Grove on November 4, 2008, at which time there shall be submitted an advisory measure as set forth in Section 3 of this Resolution. SECTION 3. The ballot measure setting forth the advisory question shall be as follows: City of Pacific Grove Measure ______ City of Pacific Grove Advisory Measure: Should the City of Pacific Grove replace its existing employee's defined-benefit retirement plan (California Public Employees' Retirement System, or Cal PERS) with a defined-contribution retirement plan (similar to an Internal Revenue Code section 401 (k) plan)? Yes (_____) No (_____) SECTION 4. The measure is an advisory measure only; the results shall not be binding upon the City or the City Council. SECTION 5. The City Council requests the Board of Supervisors for the County of Monterey ("Board of Supervisors") to provide for consolidation of the special municipal election called for herein with the statewide election scheduled for November 4, 2008, and to provide within the City of Pacific Grove the election precincts, polling places, voting booths, and election officers necessary to conduct the election. The Board is further requested to provide for the preparation and mailing of sample ballots to qualified voters within the City as appropriate and in the manner provided by law. SECTION 6. The Board of Supervisors is hereby authorized to canvass, or cause to be canvassed, as provided by law the returns of this municipal election, and to certify the results of such canvass of votes. SECTION 7. The City Clerk is authorized and directed to certify to the due adoption of this Resolution and to transmit a copy to the Board of Supervisors and file a copy, so certified, with the County Clerk and County Registrar of Voters. SECTION 8. The City Clerk and County Registrar of Voters are authorized to print such forms, publish such notices, and provide such information as may be necessary or convenient to assure the orderly holding of the election, and they shall do all other things necessary to facilitate the holding of the election in a manner harmonious and consistent with law. SECTION 9. The County Registrar of Voters is authorized to bill the City for costs associated with the election called by this Resolution. SECTION 10. The City Attorney is directed to submit an impartial analysis of the proposed measure pursuant to section 9280 of the Elections Code on or before August 25, 2008. SECTION 11. The last day to submit written arguments for the measure (encouraging a "yes" vote) shall be August 15, 2008. Submittals are to be delivered to the Office of the City Clerk on or before 5:00 p.m. SECTION 12. The last day to submit written arguments against the measure (encouraging a "no" vote) shall be August 15, 2008. Submittals are to be delivered to the Office of the City Clerk on or before 5:00 p.m. SECTION 13. The last day to submit written rebuttal arguments for the measure (encouraging a "yes" vote) shall be August 25, 2008. Submittals are to be delivered to the Office of the City Clerk on or before 5:00 p.m. SECTION 14. The last day to submit written rebuttal arguments against the measure (encouraging a "no" vote) shall be August 25, 2008. Submittals are to be delivered to the Office of the City Clerk on or before 5:00 p.m. SECTION 15. The City Clerk shall submit all materials submitted pursuant to the Elections Code to the County Clerk on or before a date yet to be determined by the Monterey County Elections Department in accordance with the Elections Code. SECTION 16. The City Council shall meet to declare the results of the election called for by this Resolution at their first meeting following certification of the election results. SECTION 17. The City Clerk shall publish a copy of this Resolution in a newspaper of general circulation within the City once within fifteen (15) days after the adoption of this Resolution. PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE THIS 16th day of July, 2008, by the following vote: AYES: Council Members Bennett, Nilmeier, Stilwell, Davis NOES: Council Members Cohen, Cort, Miller ABSENT: None APPROVED: ____________________________ DANIEL J. CORT, Mayor ATTEST: _________________________________ CHARLENE WISEMAN, City Clerk APPROVED AS TO FORM: _________________________________ DAVID C. LAREDO, City Attorney