Tag Archives: pensions

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

May 20, 2014

The April 8, 2014 El Segundo General Municipal Election is over, and Mayor Bill Fisher has been defeated, in large part because of his tax-and-spend policies and his support for wildly excessive and unsustainable pay raises for the already over-compensated firefighter and police unions that helped launch his political career with lots of campaign support, and for their managers to prevent “salary compaction”.

However, Fisher, and also El Segundo Police Sergeant and former El Segundo Police Officers’ Association (union) President Mike Gill, have continued to campaign after the election is over. They continue to claim the El Segundo firefighter and police union salary increases I cited in my information flyers distributed before the election never happened, despite my overwhelming proof. Here is even more detailed proof for those who won’t click on the links to the official El Segundo City Council Agenda Packet PDF files on the City’s website to read the documents.

Sergeant Mike Gill’s multiple false statements at the May 6, 2014 El Segundo City Council meeting are troublesome, given that he is a sworn police sergeant in a position of authority and public trust, who must be trusted to testify honestly and accurately in court in the normal course of his police duties.

Mayor Fisher supported pay raises ranging from 11.25% to 23% for the firefighter and police unions, in three or four installments over three years, and single pay raises ranging from 14.9% to 32.3% for their managers, during the first three years of the Great Recession. All of the raises were approved well after the Great Recession started, and many included retroactive pay raises effective up to 6 and 9 months before the union contracts were approved. The firefighter and police union contracts included additional 5% annual “step raises”, and additional periodic “longevity raises”.

The pay raises were approved first in closed session City Council meetings, and then again in public as a formality at the open session City Council meetings referenced in the table below.

The total pay raises included the following (not counting compounding, which actually results in higher total raises):

In addition to the above pay raises, the firefighter and police employees were (and still are) given 5% annual “step raises” in each of the first four or five years after the year they are promoted or assigned to a new position.

In addition to the above pay raises, the firefighter and police employees were (and still are) given periodic “longevity” raises every so many years.

The information below provides details about the big pay raises given to the El Segundo firefighters and police during the Great Recession.

A short list of police and firefifghter pay raises in 2009 and 2008 appear below, followed by more detailed lists of police and firefighter key contract provisions.

The firefighters union contract MOU No. 3928 was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E11), well after the 2008 recession started. Look at the agenda item (E11) in the Agenda Packet to see the MOU. It covers the Firefighter, Fire Paramedic, Fire Engineer, and Fire Captain ranks (but not the Battalion Chief, Deputy Fire Chief, and Fire Chief ranks, which are management ranks).

It provided an 11.25% raise during the Great Recession, in the form of three consecutive 3.75% raises.

It included the following (and other) terms:

1. Three-year term, commencing on July 1, 2008, and ending on September 30, 2011.
2. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, retroactively effective October 14, 2008.
3. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, effective July 1, 2009.
4. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, effective July 1, 2010.

The police officers union contract MOU No. 3929 was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E12), well after the 2008 recession started. Look at the agenda item (E12) in the Agenda Packet to see the MOU. It covers the Police Officer and Police Sergeant ranks (the two lowest ranks).

It provided a 15% raise during the Great Recession, in the form of three consecutive 5% raises.

It included the following (and other) terms:

1. Three-year term, commencing on July 1, 2008, and ending on September 30, 2011.
2. A 5% salary increase for Police Officers and Police Sergeants, retroactively effective October 14, 2008.
3. A 5% salary increase for Police Officers and Police Sergeants, effective July 1, 2009.
4. A 5% salary increase for Police Officers and Police Sergeants, effective July 1, 2010.

The Police Managers union contract MOU No. ____ was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E8), well after the 2008 recession started. Look at the agenda item (E8) in the Agenda Packet to see the MOU. It covers the Police Lieutenant and Police Captain ranks.

It provided an 18% raise for Police Lieutenants and a 23% raise for Police Captains during the Great Recession, in the form of four consecutive raises effective retroactively on July 1, 2008 and October 1, 2008, and also on October 1, 2009 and October 1, 2010. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75)

It included the following (and other) terms:

1. A 4% salary increase for Police Lieutenants and Police Captains, retroactively effective July 1, 2008. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
2. A 9% salary increase for Police Captains and a 4% salary increase for Police Lieutenants, retroactively effective October 1, 2008. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
3. A 5% salary increase for Police Lieutenants and Police Captains, effective October 1, 2009. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
4. A 5% salary increase for Police Lieutenants and Police Captains, effective October 1, 2010. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)

December 2, 2008 El Segundo City Council Resolution-Management Raises (0.98 MB PDF file)

The City Council resolution providing Executive Management, Mid-Management/Confidential, and Public Safety Management city employee raises and benefits increases was approved at the December 2, 2008 El Segundo City Council meeting (Consent Agenda item E8), well after the 2008 Great Recession started. Look at the agenda item (E8) in the Agenda Packet to see the Resolution approving the raises. It covers the Battalion Chief, Deputy Fire Chief, Fire Chief, and Police Chief ranks, which are all management ranks).

It provided substantial raises to prevent salary compaction between management employees and their subordinate union member employees who received large pay increases. Thus, large union employee raises are used as justification for large management employee raises.

It included the following (and other) terms:

1. Salary Compaction (Compression) in the Police and Fire Departments

   
   In order to address salary compaction (compression) issues between management job classifications and (labor union) bargaining unit job classifications, the following salary increases establish 5% compensation differentials
   between supervisors and subordinates, and result in the Police chief and Fire Chief being assigned to the same salary range. Salary Compaction Pay Adjustments, with the exception of the Fire Chief, effective July 1, 2008, will be effective October 1, 2008. The percentage increases listed below include the 4% salary increase provided to all Management/Confidential Employees.

   1. An increase of 16.9% to the Salary Range for Battalion Chief (Salary Range 60f).
   2. An increase of 14.9% to the Salary Range for Deputy Fire Chief (Salary Range 69f).
   3. An increase of 32.3% to the Salary Range for Fire Chief (Salary Range 70f).
   4. An increase of 23% to the Salary Range for Police Chief (Salary Range 60p).

      PAY – LEAVE PAYOUT – PENSION SPIKE:

      Police Chief David Cummings received a 23% pay increase effective October 1, 2008, which spiked his pay, his vacation and sick leave payout (cash-out) value (for his vacation and sick leave hours which were accrued, accumulated, and rolled-over from year to year), and his pension. His total 2009 earnings was $425,775 – consisting of $225,627 Regular Earnings, $480 Special Compensation, and $199,668 Leave Payout. He retired in 2009 with a pension of $210,213.36 yearly ($17,517.78 monthly) according to CaliforniaPensionReform.com, plus medical insurance, for the rest of his life.

      The reason given for his 23% pay increase that spiked his pay, leave payout, and pension was salary compaction, also known as salary compression, caused by (large) pay increases given to the police union members.

2. A 4.0% salary increase for all Executive Management, Mid-Management/Confidential Employees, with the exception of the City Manager, effective 7/5/2008.

   For reference purposes, the Consumer Price Index (CPI-U) for the Los Angeles-Riverside-Orange County area averaged 3.52% for the twelve month period from July 2007 – June 2008. …