Sup Sean Elsbernd says that the City’s pension and retiree health care obligations are, “The most crushing fiscal issue facing this City,” a crush he estimates will amount to $4 billion over the next 30 years, and growing.
“If we don’t act, people are going to kick us and throw mud in our face, 20 years from now,” says Elsbernd, who, along with Mayor Gavin Newsom introduced a June 2008 charter amendment today that Elsbernd claims is a “small attempt to make sure that this it stops at $4 billion.”
“I look forward to future discussions with labor on this,” Elsbernd says.
But Newsom and Elsbernd are proposing to reduce retirement benefits for those hired after Jan. 10, 2009, increase years of service required to qualify for health benefits at retirement and adjust the formula for calculating retiree health benefit subsidies. Which is why labor may well decide to back a dueling charter amendment that Board President Aaron Peskin introduced today with Sups. Ross Mirkarimi, Geraldo Sandoval, and Tom Ammiano as co-sponsors.