Tapping DWP Retirement Funds
http://www.laweekly.com/ink/04/51/news-anderson.php
LA WEEKLY
NOVEMBER 12 - 18, 2004
Tapping Pension Funds: DWP may end up giving less to workers’ retirement plan
by Jeffrey Anderson
A CRITICAL VOTE next Wednesday by the Department of Water and Power’s Retirement Board could reduce the DWP’s contribution to its pension fund and threaten long-term retirement benefits.
The board’s two elected members were surprised to learn of the proposal last week, and how the DWP is dealing with a drain on resources caused by payouts to management-level employees and financial assistance to Mayor Jim Hahn’s administration to help pay off the city’s debt. ...
LA WEEKLY
NOVEMBER 12 - 18, 2004
Tapping Pension Funds: DWP may end up giving less to workers’ retirement plan
by Jeffrey Anderson
A CRITICAL VOTE next Wednesday by the Department of Water and Power’s Retirement Board could reduce the DWP’s contribution to its pension fund and threaten long-term retirement benefits.
The board’s two elected members were surprised to learn of the proposal last week, and how the DWP is dealing with a drain on resources caused by payouts to management-level employees and financial assistance to Mayor Jim Hahn’s administration to help pay off the city’s debt. ...
posted by The Gadfly at 8:42 AM
5 Comments:
This comment has been removed by a blog administrator.
This comment has been removed by a blog administrator.
How can we stop this? Who protects the employees?
Shortchanging contributions to DWP's retirement plan does not seem unusual. Then DWP General Manager S. David Freeman attempted to withold a monthly payment in 1998 or so, and paid a political price at the hands of Vince Foley, and others.
The separation package of 1998 cost the retirement plan maybe $300M, and it was unnecessary in any event, in the long run. Just a lot of damage to DWP, corporate amnesia, and a power struggle ultimately won by IBEW and City Hall.
The subsequent retirement board election injected partisan politics to a theoretically non-political Retirement Board. Actually partisan by IBEW Local 18. Their three shop stewards lost the election.
Employees who won, happened to be represented by the Engineers and Architects Association. An unpleasant reality for IBEW.
Due to IBEW claims of wrongdoing in the election process, and IBEW sponsored litigation, IBEW had the election nullified, had a new one scheduled, and strongly lobbied their represented employees to vote a straight IBEW slate, for candidates that some would argue were far less qualified emotionally, intellectually, by training, by experience to fulfill the serious fiduciary responsibilities of the job. Some may refer to them as the gang of three, or as the three stooges.
As no real surprise, the IBEW slate won. (And Duamel Vellon was retirement plan manager.) A strange combination. This gave management and IBEW, working together, absolute control of the $6B retirement plan. This opens a spectrum of possibilities, on the dark side.
The net effect, some may aruge, was three employee representatives, and the retiremnt plan manager, in the pockets of IBEW and DWP management.
Ensuing controversy, questions of competence, and loss of plan value seemed to logically ensue. Change seems unlikely considering the seeming unchallengable authority of IBEW.
So here we are, plan losing money, and the stacked retirement board may do further damage, by approving contibutions less than they really should be.
This fits in well with DWP's premature transfer a few months ago of a $60M "one time only transfer" of surplus funds to city hall. Obviously, it was not a surplus. DWP is trying to squeeze everywhere, including the retirement plan. But will the plan cave in to IBEW and DWP management, to do the politically expedient? Or do the right thing, the thing their fiduciary responsibilities demand?
Let's stay tuned, and watch the fireworks. And pray DWP employees voting to fill the now vacant employee represented retirement board position, actually vote based on candidate competency, not on IBEW rank/party ticket.
by Treetop Yodler
When will we change the LA Charter to reform some of these abuses. Shouldn't there be some vesting requirements?
Post a Comment
<< Home