Meeting Recap for January 13, 2013

For a former member of what is arguably one of the country’s more liberal newspaper editorial boards, Monday’s guest speaker at Rotary Club of Sacramento was sounding pretty conservative.

Ginger Rutland, daughter of late former Rotarian Bill Rutland and just retired after 25 years on the Sacramento Bee’s editorial board was RCOS’s guest speaker at the Red Lion. Introduced by Chair of the Day Allan Howard, Rutland’s focus was on public employee pensions and their impact on state and local governments. “I spent a lot of time at the Bee writing about retirement—some would say ‘ranting’,” said Rutland. “We have promised more in benefits than we can afford.”

Rutland, no stranger to the RCOS podium, outlined a 20-plus year history of bad decisions on public employee benefits that will negatively affect the state for years to come. “It all sort of started with SB400 by Deborah Ortiz in the 1990s,” said Rutland. “It created the ‘2% at 55’ rule.” (State employees could retire at 55 with a pension of 2% of pay per year of service.) “We were told it wouldn’t cost us anything; gains from the ever-rising stock market would take care of it. On top of that, it promised annual cost of living increases and free healthcare for life. “Then in 2000, former Assemblyman Tom Calderon got a bill through enabling local governments to offer 2.7% at 55, with cost of living increases and free lifetime healthcare. “And public safety employees could be given as much as 3% per year of service and retire at 50 with cost of living increases and free healthcare for life.”  Later, said Rutland, there was an attempt to cap total pension payouts at 90% of salary, but not all counties adopted the change.

“In Sacramento County, a police officer with 35 years of service can retire and receive 105% of his or her pay. It is actually possible to make more the day after you retire—with COLA and healthcare.”

She also talked about the practice of “spiking”—adding unpaid benefits and other items to the calculation of salary on which a pension is based. “If we don’t so something about all this, many more cities in California are going to have to declare bankruptcy as the pension bills for ‘Boomers’ start to roll in,” she said. “I don’t want to lose ‘defined benefit’ plans. I don’t want to throw people into the ‘401k casino.’ But the formulas need to be lowered. We need to recalibrate. These payments are not sustainable.”

---

Brian Witherell was inducted as the newest RCOS member by President Thom Gilbert after being introduced to the club by sponsor Dick Ryder. Jim Craig also sponsored Witherell.

Bruce Hester announced a new membership drive, the goal of which is to bring at least 100 prospective new members to meetings between now and the end of June. More details to follow.

Jeff Setzer reminded members that Jan. 27th will be our “Passions Day” meeting  at the Red Lion. The tradition of having members talk about/display hobbies and pastimes is being revived this year.

---

Introduced by Walter Dahl, Steve Weber of the Ananda Church of Self-Realization delivered the invocation. New members Michael Pearson and Kevin Manz acted as greeters.  JD Lauppe and Bonnie Plummer sponsored the pre-meeting wine reception at which music was provided by Bill Shubb and Jeff and Paul Stone.  Paul also played the wedding march when Pres. Thom congratulated Diane Schachterle on her newly-wed status, as of New Years Day.

---