Second, it should be clarified that WCERS is a defined benefit plan. Many companies and other entities have been moving away from defined benefit retirement plans. The county instituted the MPPP as a budgetary measure beginning in 1984. Previously employed persons remained in WCERS. It soon became evident that the defined benefit plan was more desirable, and a number of employees who had elected MPPP were allowed to move back into WCERS in 1999-2000. But this established two classes of employees, especially since MPPP returns were dependent on the vicissitudes of the market, which have not been favorable over the last 10 years or so. Union members began clamoring for a defined benefit for all and this change was made according to the union contracts of 2008 and took place as of January 1, 2009. (The paragraph says “over the years” but this is not accurate.)

As the background to the resolution makes clear, it is now very costly to maintain the MPPP plan since the commissioners are not enough members or with enough funds deposited to merit the administrative costs associated with the plan. The resolution would make it possible for commissioners to roll over their current balances into an IRA. (I retired as of January 2005 from the BOC and was able to roll over my balance into an IRA, in fact, was required to.)

Once again, I commend Commissioners Irwin, Bergman, and Gunn for supporting the removal of commissioners from the MPPP. It was a nice little benefit but not necessary or appropriate when the county is in such dire straits. I am disappointed to read that my own commissioner, Conan Smith, supported the move to postpone the resolution.

I suspect that the delay is to negotiate the continued participation of the commissioners in the VEBA, which permits retirement with certain health benefits. Commissioners must be at least 60 with at least 8 years of service to retire with those benefits. Several of the sitting commissioners would qualify.