Like many local government entities nationwide, the County’s fiscal position would benefit greatly from reduced pension costs. Allowing local government entities to implement collective bargaining agreements and state legislation that permits employees to elect less rich pension formulas would be a significant step in reducing pension costs.
At its January 18, 2011 meeting, the Board of Supervisors adopted the 2011 Federal Legislative Platform. At the meeting, the Board requested that a matter relating to the implementation of Public Safety retirement provisions contained in SB 524 (Chapter 633, Statutes of 2006) be referred to the Legislation Committee. The Board also requested that the matter of the Carquinez Scenic Drive SF Bay Trail Improvement Project and its recommended removal from the Federal Legislative Platform be discussed by the Legislation Committee.
In 2006, Contra Costa County and the Deputy Sheriff’s Association jointly obtained state legislation that would allow members of the Association to make a one-time irrevocable election between their current pension formula and a less rich pension formula, called Tier C. Orange County and its labor organizations obtained similar legislation in 2009. However, neither County has been able to implement this state legislation because such elections currently have negative tax consequences for employees and for retirement plans under federal tax law as interpreted by the Internal Revenue Service.
Like many local government entities nationwide, the County’s fiscal position would benefit greatly from reduced pension costs. Allowing local government entities to implement collective bargaining agreements and state legislation that permits employees to elect less rich pension formulas would be a significant step in reducing pension costs.
Therefore, the Legislation Committee recommends that the Board of Supervisors support including the following policy position as an amendment to the 2011 Federal Platform:
The County will support legislation that would modify the Internal Revenue Code and corresponding regulations to permit public employees to make an irrevocable election between their current pension formula and a less rich pension formula.
The Legislation Committee also recommends that this matter be brought forward to CSAC and to NACo, as well as to the National League of Cities and the United States Conference of Mayors for consideration of support.
With regard to the Carquinez Scenic Drive SF Bay Trail Improvement Project, the Legislation Committee received the following report and concurred with the project removal from the appropriations requests in the 2011 Federal Platform:
In 2005, Contra Costa County received a federal earmark for $1.0 million for the Carquinez Scenic Drive SF Bay Trail Improvement Project. The project was estimated to cost $6.0 million. In October 2010, East Bay Regional Park District (EBRPD) was awarded a TIGER II federal grant to construct a trail on Carquinez Scenic Drive. The TIGER II funds and EBRPD’s Measure WW funds will fill the funding gap for the proposed trail project. Hereafter, EBRPD will be the lead agency for the remaining preliminary engineering, design, and construction of the Carquinez Scenic Drive SF Bay Trail Improvements. EBRPD will assume ownership and maintenance of the trail once constructed.
The trail will be constructed along the closed portion of Carquinez Scenic Drive. EBRPD has requested the assignment of easement for a trail on Carquinez Scenic Drive. Once the easement is accepted by EBRPD, Contra Costa County will be vacating the roadway right-of-way within this closed segment. The Contra Costa County Real Property Division is currently processing these requests and is expected to complete the assignment and vacation sometime in April 2011.
A draft MOU between the County and EBRPD has been reviewed by our County Counsel, and staff hopes to bring the agreement to the full Board for approval in the near future. In conclusion, it appears the project is now fully funded and, therefore, no additional appropriations/earmarks are required.
Unless this amendment to the 2011 Federal Legislative Platform is adopted, there will be no authority for the Board, the County's federal advocate, or staff to pursue legislation that would achieve the modifications to the Internal Revenue Code and corresponding regulations to permit public employees to make an irrevocable election between their current pension formula and a less rich pension formula.