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					                                                                                   Current Policy

Librarian II                                                                  My Examples
                                              Working Paper        FY 2013       FY 2014         FY 2017
Total Salary                                          74,942           74,942       74,942         74,942
   Pension Contribution - Employee                     4,302            4,302        4,302           4,302 Source 1: Page 10 (currently 5.74%, projected to be flat)
   Retiree Health Care Contrib - Employee              5,441            5,441       11,616         11,616 Source 2: Page12, contribution rises in FY 2014, remains high
   Avg. Health Care Contribution - Employee              N/A            3,160        3,160           3,160 Average of plans with more than 100 workers choosing it
      Total Employee Benefit Deductions                9,743           12,902       19,078         19,078

      Benefit Deductions as % of pay                       13%             17%           25%           25%

Pre-tax Salary, Net Deductions                          65,199         62,040         55,864        55,864

Recent Pay Cuts - 12% of pay                              N/A            8,993         8,993         8,993

Recent Pay Cuts as % of pre-tax pay                       N/A              13%           22%           22%

Retirement Benefits
   Accrued Benefit @ 20 years**                         42,000         37,471         37,471        37,471
   COLA                                                     3%             3%             3%            3%
   Cheapest Retiree Health Care Plan paid for by city

   * Analysis shows the impact of the recent cuts (12% of total compensation), plus increased contributions for OPEB (10% since 2010) reduce
     take-home pay by 22% over a short period of time (2010-2014) even without any ballot measure.
   ** Assumes someone retires in the specified FY with 20 years of service, which is roughly the average service in the federated plan at retirement.

Sources:
 1 Federated plan - pension: http://www.sanjoseca.gov/employeeRelations/retirementbenefits/AcuarialValuation6.30.11PensionOnly.pdf
 2 Federated plan - opeb: http://www.sanjoseca.gov/employeeRelations/retirementbenefits/ActuarialValuationAndPresentationofOPEB6.30.11.pdf
                                              Ballot Measure Passes -- IRS Approval Denied, Measure Defeated or VEP Not Selected

Librarian II                                                                  My Examples
                                              Working Paper        FY 2013       FY 2014         FY 2017
Total Salary                                          74,942           74,942       74,942         74,942
   Pension Contribution - Employee                    14,044            4,302        7,299         16,292 Source 1: Page 10 (currently 5.74%, projected to be flat)
   Retiree Health Care Contrib - Employee              5,441            5,441       11,616         11,616 Source 2: Page12, contribution rises in FY 2014, remains high
   Avg. Health Care Contribution - Employee              N/A            3,160        3,160           3,160 Average of plans with more than 100 workers choosing it
      Total Employee Benefit Deductions               19,485           12,902       22,075         31,068

      Benefit Deductions as % of pay                       26%             17%           29%           41%

Pre-tax Salary, Net Deductions                          55,457         62,040         52,867        43,874

Recent Pay Cuts - 12% of pay                              N/A            8,993         8,993         8,993

Recent Pay Cuts as % of pre-tax pay                       N/A              13%           26%           38%

Retirement Benefits
   Accrued Benefit @ 20 years**                         42,000         37,471         37,471        37,471
   COLA                                                     3%             3%             3%            3%
   Cheapest Retiree Health Care Plan paid for by city

   * Analysis shows the impact of the recent cuts (12% of total compensation), plus increased contributions for OPEB (10% since 2010) and
     pensions (16%, phased-in) reduce take-home pay by 38% over a short period of time (2010-2017).
   ** Assumes someone retires in the specified FY with 20 years of service, which is roughly the average service in the federated plan at retirement.

Sources:
 1 Federated plan - pension: http://www.sanjoseca.gov/employeeRelations/retirementbenefits/AcuarialValuation6.30.11PensionOnly.pdf
 2 Federated plan - opeb: http://www.sanjoseca.gov/employeeRelations/retirementbenefits/ActuarialValuationAndPresentationofOPEB6.30.11.pdf
                                                            Ballot Measure Passes -- VEP Survives and is Chosen By Worker

Librarian II                                                                    My Examples
                                            Working Paper            FY 2013       FY 2014          FY 2017
Total Salary                                        74,942               74,942       74,942          74,942
   Pension Contribution - Employee          6750-9300                     4,302        4,302            4,302 Source 1: Page 10 (currently 5.74%, projected to be flat)
   Retiree Health Care Contrib - Employee            5,441                5,441       11,616          11,616 Source 2: Page12, contribution rises in FY 2014, remains high
   Avg. Health Care Contribution - Employee            N/A                3,160        3,160            3,160 Average of plans with more than 100 workers choosing it
      Total Employee Benefit Deductions          N/A                     12,902       19,078          19,078

      Benefit Deductions as % of pay                  N/A                    17%            25%           25%

Pre-tax Salary, Net Deductions                        N/A                62,040          55,864       55,864

Recent Pay Cuts - 12% of pay                                N/A            8,993          8,993         8,993

Recent Pay Cuts as % of pre-tax pay                         N/A              13%            22%           22%

Retirement Benefits
   Accrued Benefit @ 20 years**                          42,000          37,471          37,096       35,597
   COLA                                                    1.5%            1.5%            1.5%         1.5%
   Cheapest Retiree Health Care Plan paid for

   * Analysis shows the impact of the recent cuts (12% of total compensation), plus increased contributions for OPEB (10% since 2010) reduce
     take-home pay by 22% over a short period of time (2010-2014), in addition to pension cuts that will increase in severity over time (as past service
     become less a factor). I did not account for the degradation of value of the past service, though it is very real. For a worker getting the full phase in,
     past service will be devalued by about 53% (7 years of reductions at age 55, reduced cola, SRBR cut, and final pay).
   ** Assumes someone retires in the specified FY with 20 years of service, which is roughly the average service in the federated plan at retirement.

Sources:
 1 Federated plan - pension: http://www.sanjoseca.gov/employeeRelations/retirementbenefits/AcuarialValuation6.30.11PensionOnly.pdf
 2 Federated plan - opeb: http://www.sanjoseca.gov/employeeRelations/retirementbenefits/ActuarialValuationAndPresentationofOPEB6.30.11.pdf

				
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