July 27, 2009

Former City Employees Retire on More Than $100,000 A Year

Recent articles in the San Leandro Times and the Daily Review have drawn attention to the salaries and perks enjoyed by City of San Leandro employees.

According to a June 2009 San Leandro Times article, 110 city employees made more than $100,000 during the prior fiscal year, up from 78 reported in 2007.

As noted in these articles, these salaries and perks are not unusual for government employees throughout the state.

Government pensions have recently received a lot of attention, largely due to information published by the California Foundation for Fiscal Responsibility at its California Pension Reform web site. The web site provides the retirement amount for government retirees receiving more than $100,000 annually through the California Public Employee Retirement System (CalPERS).

According to the California Pension Reform web site, the following former City of San Leandro employees receive more than $100,000 annually:

NameMonthlyAnnually
JOSEPH KITCHEN13,824.22165,890.64
DENNIS GLOVER11,851.32142,215.84
JAMES O'MEARA 10,539.57126,474.84
ROBERT MAGINNIS10,018.45120,221.40
JOHN BISCHOFF9,517.42 114,209.04
ROBERT ROCKETT9,505.66114,067.92
DANIEL MARCHETTI9,172.36110,068.32
WILLIAM RUGG8,735.47104,825.64
RENEE SOLOMON8,542.68102,512.16
RANDALL STOUT8,430.50101,166.00
DAN LUNSFORD 8,387.10100,645.20

San Leandro isn't unusual in the number of former employees getting more than $100,000 in retirement. It's also not unusual in that most of the former employees worked for the police department. The City of Alameda has 34 people listed, Berkeley has 37, and Hayward has 35.

Since the information at the California Pension Reform web site doesn't include recent retirees such as former City Manager John Jermanis and former Police Chief Dale Attarian, San Leandro Bytes made a request for more recent information from CalPERS. This is the current list (as of July 23, 2009):

NameMonthlyYearly
John Jermanis, Jr.$18,054.96$216,659.52
Dale S. Attarian$14,302.57$171,630.84
Joseph W. Kitchen$14,100.70 $169,208.40
Leroy E. Riordan$11,233.93 $134,807.16
Marcelus A. Decoulode$10,940.94 $131,291.28
Barbara F. Randall$9,560.60 $114,727.20
Daniel T. Marchetti$9,355.74 $112,268.88
William R. Rugg $8,910.06$106,920.72
Louis Spirou, Jr. $8,863.14$106,357.68
Randall R. Stout$8,598.86$103,186.32
James J. Johnston$8,595.75 $103,149.00

Many government employees are eligible for retirement at age 50 and receive three percent of their salary for each year of service. In addition, employees can manipulate the system to increase their pensions. For example, the former Fire Chief of Orinda and Moraga was making $186,000 before he retired, but receives an annual pension of $241,000 because he was permitted to sell unused vacation and holidays.

Unlike many retirement plans, CalPERS guarantees its pensions. This means that when CalPERS loses money on its investments, it requires local governments to pay more money into the system. As local governments struggle to survive with less revenues, increasing retirement costs may push some into fiscal ruin.

Posted by Mike Katz-Lacabe at July 27, 2009 12:40 AM | TrackBack
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