Contra Costa Times, Walnut Creek, Calif., Lisa Vorderbrueggen column [Contra Costa Times, Walnut Creek, Calif.] - Insurance News | InsuranceNewsNet

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December 16, 2011 Newswires
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Contra Costa Times, Walnut Creek, Calif., Lisa Vorderbrueggen column [Contra Costa Times, Walnut Creek, Calif.]

Lisa Vorderbrueggen, Contra Costa Times, Walnut Creek, Calif.
By Lisa Vorderbrueggen, Contra Costa Times, Walnut Creek, Calif.
McClatchy-Tribune Information Services

Dec. 16--Contra Costa public employees distraught over painful wage and benefit cuts have decried in multiple recent public hearings the county's practice of hiring its retirees.

They say it deprives full-time workers of promotion opportunities, and the part-time restriction placed on retirees leaves everyone else to fill in the gaps and degrades service. Unions have lobbied heavily for legislation that would restrict it.

But are working retirees a problem for the public and taxpayers?

Not really. In November, the county had 385 retirees on its payroll. At roughly one-half of 1 percent of the county workforce, old-timers are not exactly taking over the joint.

Retirees cost less. They work for a straight hourly rate with no paid vacation or benefits.

That's not to say that retirees are free.

The county pays tens of millions of dollars each year into the Contra Costa County Employees' Retirement Association system to cover pension obligations. But the county must pay whether or not retirees come back to work, and filling their positions with regular employees triggers new costs.

Managers also say retirees are often highly experienced in specialized areas where it may be difficult to replace them.

"For me, hiring retirees is a tool in the face of staffing crisis," said Contra Costa Health Services Director William Walker. "Given the market demands for medical personnel and the county's slow hiring system, I

am having trouble hiring anyone."

Public perception is another matter.

Taxpayers dislike what they view as "double dipping," or situations where a public employee earns a pension and simultaneously collects a second taxpayer-funded paycheck.

Dr. Walker is a dipper.

He officially retired Jan. 5 and collects a pension of $22,361 a month. He also earns an additional $12,000 a month in wages. He works full time but can only be paid for 960 hours a year per labor rules.

Most of the county's highest-paid retirees are doctors, nurses and other health care professionals, though numerous departments including law enforcement, child support services and purchasing have retirees on the payroll.

A few examples:

--Stephen Daniels, a physician at the county hospital, retired in mid-2010 and collects a pension of $156,000 a year. Since his retirement, he has earned another $150,000.

--Stormwater pollution control manager Don Freitas, also a former Antioch councilman, retired in early 2010 and collects a pension of $88,649 a year. He returned to work and has earned an additional $58,871 in wages.

--Deputy district attorney Robert Hole retired in 2004 and collects a pension of $151,173 a year. Since his retirement, he has earned an additional $317,275 in wages.

The idea that public employee retirees can put extra taxpayer cash into their pockets may irk some people, but as long as these folks are doing work that needs to be done, the public is getting a good deal.

SHOWDOWN: Danville Mayor Candace Andersen entered the race for Contra Costa supervisor, setting up a head-to-head challenge with Contra Costa Community College Chairwoman Tomi Van de Brooke.

But will the ladies have company?

Readers have been calling with tidbits of a telephone poll linked to the possible candidacy of former state Sen. President Pro Tem Don Perata, who moved to Orinda earlier this year after losing the Oakland mayor's race.

Perata is still on the fence, say sources.

But the pollster was clearly testing Perata's "negatives" with voters, asking if they view him as a "carpetbagger" and if the now-closed FBI investigation into allegations that he engaged in kickbacks will cost him votes.

The answers could well make the decision for him.

JUST THE FACTS: Concord Councilman Ron Leone announced in a public meeting that he had "given up" his free, lifetime health and dental benefits through the Mt. Diablo Health Care District.

He misspoke. He gave up nothing.

A former health care district board member, Leone switched to the city's insurance but the district will continue to pay about $580 a month toward his premiums. And when Leone is no longer eligible to participate in Concord's plan, he is entitled to return to the district for coverage.

GOT POLITICS? Read the Political Blotter at IBABuzz.com/politics.

AND FINALLY: What the state giveth, the state taketh away.

As Contra Costa County Administrator David Twa explained this week, the state will give the county about $6 million next fiscal year to cover what is euphemistically called "public safety realignment."

What that means is that counties must now house prisoners that once fell under the state's responsibility.

But the state on Jan. 1 will stop paying for the county's juvenile offenders at a cost of $125,000 per child per year, or roughly $5.5 million a year.

"The net effect is that we will be doing the realignment programs with almost no net dollars from the state," Twa said. " ... There's a saying that when the state sneezes, counties get a cold. In this case, the state has a cold and we may be closer to pneumonia."

It sounds like it might be time to retire. And stay retired.

Contact Lisa Vorderbrueggen at 925-945-4773, [email protected], IBABuzz.com/politics or Twitter.com/lvorderbrueggen.

___

(c)2011 the Contra Costa Times (Walnut Creek, Calif.)

Visit the Contra Costa Times (Walnut Creek, Calif.) at www.contracostatimes.com

Distributed by MCT Information Services

Wordcount:  867

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