I guess I should explain the back story behind getting my pay cut.

Last year the City was having problems funding the Pension Plan. Not sure why, but I think they lost several, several million in the stock market in 2000-2001. Also, they were doing something quasi-illegal in regards to paying for something or another from the Pension Plan.

Anyway…it came down that they were under funding our Pension Plan.

When I hired on, it was a promised benefit to me that the City would contribute on my behalf to the Pension Plan. After 10 years I would be vested and be able to draw from it when I retired. It was a great perk. It cost me nothing and it was just one more little feather in the cap of a City employee.

But, they were under funding the Plan.

They instructed the Pension Board to come up with alternatives.

The first thing they did, which makes total sense, was to make all new employees contribute 4% of their pay to the Plan. Hey, if you know that when you hire on, no big deal. It just means the Pension Plan is not quite as attractive to you, but it’s still an ok perk.

The Board came up with three alternatives…

1 - Freeze everyone’s pension. What ever is in there now, is all you get
2 - Have the City up its contribution to cover the shortage
3 - Make the employees contribute 4%

In the meetings we were told that Option 2 is not really an option. The City Commission was not going to increase their contribution, so really, your choices are 1 or 3.

Gee, guess which one got picked by the employees?

In the name of full disclosure, I did not go to the meeting and I did not vote. I was busy and the information they gave me told me what the ultimate outcome would be. People much more vocal than me stood up and voiced their opinion, but in vain.

In the end, making all employees contribute 4% to the Plan was chosen. The thing that pissed me off the most was that the Pension Board proclaimed to the City Commission that the employees overwhelmingly chose to contribute 4%. They never told the Commission that the only two real choices were freezing or contribute.

I called my Commissioner and told him that the information that was presented was not quite accurate. I did not get much feedback.

So, starting July 1 of this year, every employee had to start contributing 4% of their pay to the Pension Plan. They chose that date because it would coincide with a planned 3% cost of living raise that had been promised to the employees.

3% cost of living + 4% (pre-tax) pension contribution = $30 less TAKE HOME per check. 26 checks per year = $780 less per year for my family.

Also, insurance is going up 10% in October AND they are cutting some of our sick time. I am not sure when this is going into affect, but they are cutting the rate at which we accrue sick leave.

Overall effect:

I have fewer sick days
I have less money in my pocket
My benefits are not as good as they were
My moral sucks.

Yeah, I have a rotten attitude. But when you are doing the job of three people…AND they cut your pay…it’s hard not to have a sucky attitude.

Oh well.

Beats living on the street.