A lot of folks seem to forget that Orange County Supervisor John Moorlach predicted the problems that led to the infamous O.C. bankruptcy. I mention this because the O.C. Register announced today that Moorlach “will seek a pension overhaul that will slice public-safety employees’ benefits by one-third.”
According to the Register, “On the chopping block is the “3 percent at 50,” a pension formula that has applied to sheriff’s deputies and District Attorney’s Office investigators since 2002. Sources close to the negotiations told The Orange County Register that Moorlach will soon try to replace that formula with one that would cut any retirement benefits received before 2002 to 2 percent at 50.”
Predictably, Liberal OC blogger Chris Prevatt, a county employee, took umbrage at Moorlach’s proposal, writing that “Pension benefits for public employees are vested once they are established and cannot be taken away.”
I trust that Moorlach, our former Orange County Treasurer, knows more about pensions and benefits than Prevatt does. I doubt he will propose anything illegal.
Rich Wagner, president of the Lincoln Club, told the Register that the county’s unfunded liability is “irresponsible” and shouldn’t be left for future generations to pay with their taxes. I could not agree more!
I am not anti-union, and I don’t think Moorlach is either. But the facts need to be looked at with open eyes – the 3 per cent at 50 pension program is a boondoggle. The O.C. Supervisors NEVER should have approved it. It needs to go. It is not fair to taxpayers to burden us with a liability that will, if unabated, drive us to a second county bankruptcy.
Moorlach’s detractors find it easy to rip him – but he was right about the O.C. bankruptcy. He is an ethical, moral man. He is not the bogeyman that some critics would like us to believe he is. And he is right about these pensions. Give him time to explain himself and I am sure most of you will agree.
What he’s saying is that the past board of supervisors got snookered in negotiations – that outlook may not win much support for funding his legal battles – either way us taxpayers will be paying more – either leagal fees or pensions. Moorlach will probably find out why you get a big pension for being a possible target – big pensions are cheap if no one lives long enough to collect much.
It will be interesting to see how this moves forward. Ms. Nguyen is up for reelection. So is Sup Campbell. Bates and Moorlach are new and Norby is termed out. In addition, what do the 500 retirees who relied upon the deal do. Do they have a cause of action? Can they sue the county for executing this contract? What is their harm?
If Moorlach’s legal view that the 3% at 50 deal was illegal/unconstitutional with regard to it being applied retroactively, the County may also be looking for a new County Counsel (Attorney). This is a most interesting legal argument for the Courts to decide, and it will be very interesting to watch this play out over the next several years. If the majority of the Board of Supervisors do not support his challenge of 3% at 50 for Safety members on a retroactive basis,then what is the next step? A grass roots taxpayer suit with John leading the charge to raise funds from the public and other interest groups like OC Tax (Reed Royalty and associates) to fund the challenge? Could be – stay tuned.
Moorlach seems to believe the granting of retroactive benefits is unconstitutional, and the courts may decide that one. I wonder what the constitutionality is of the OC Board having cut retiree health benefits retroactively, impacting retirees who have been retired for years and years, even decades? Can the County Board have it both ways? Eventually, we may find out by means of court action in both instances – the 3% at 50 issue, and the cutting of health benefits for current retirees. Another era of full employment for attorneys, if nothing else.