County retirees blast Register editorial

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Rightly or wrongly, the Orange County Register is heavily invested in stories and editorials critical of government in general as well as government employees. Perhaps this is no where more visible then the almost continuous barrage of articles, columnists and editorials addressig public sector pay and benefits – especially retirement benefits. Some, like this writer, often find such publications slanted and sometimes downright wrong. Most of the time it is futile to try and get correcting or counter views printed in the newspaper, and easy to adopt a “what’s the use – after all, they own the ink” philosophy.

The Register has recently reported and editiorialized on the lawsuit filed against the county regarding cost shifts and cuts applied to existing retirees. An Editorial published November 30 prompted a strong response from the Retired Employees Association of Orange County (REAOC), the organization that has filed one of the pending lawsuits against the Supervisors for their retirement policy and cost changes that have been applied to exisiting, not just future, retirees (Another case of the Supervisors trying to apply rules retroactively). The organization’s response was posted on the web site of the REAOC organization today, as follows:

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The following is the REAOC Board of Directors’ response to an editorial appearing in the Orange County Register newspaper on November 30th. To date, our response has not been printed; however, we wanted to inform you of our opposition to the media’s interpretation of the California Supreme Court’s November 21st ruling regarding our retiree medical lawsuit. A link to the original editorial precedes this response.

Retiree Health Benefits: Matters of Fact

The late Senator Daniel Patrick Moynihan famously said that everyone is entitled to their own opinion, but not their own facts. Your editorial “Court sides with retirees, against taxpayers” (November 30, 2011) is replete with assertions that bear no relation to the truth of the matter in dispute in the litigation between Orange County and its retired employees.

First, the California Supreme Court’s recent ruling in Retired Employees Association of Orange County v. County of Orange was anything but “bizarre.” Indeed, this unanimous decision, reached by a Court made up of six Republican-appointed justices and just one Democratic appointee, merely confirmed a long-established principle of contract law: that contracts, whether in the public or private sector, may include “implied” terms, in addition to their express written terms.

Second, the Court did not limit government’s ability to alter “nonvested” benefits of its employees or retirees. Rather, it held, unremarkably, that the question whether a benefit is vested or nonvested is answered by looking to traditional, settled principles of contract interpretation.

Third, you assert that the benefit at issue in this case-retirees’ right to participate in the same premium “pool” as active employees-imposed “enormous liabilities” on the County. But the fact is that the County’s cost of providing that benefit was infinitesimal -approximately .03% (that’s three one-hundredths of one percent) of its annual budget. In fact, the County admitted, in sworn testimony, that its decision to segregate retirees into a separate pool was not motivated by financial concerns.

Finally, you say it is “absurd” to suggest that County retirees are suffering any hardship as a result of the County’s creation of the retiree-only premium pool in 2008. But the fact is this: premium inflation for Orange County retirees has tripled since the County made that drastic change in 2008. In 2007, a retiree with one dependent enrolled in the County’s indemnity health plan paid an annual premium of $14,000; for 2011 that premium has skyrocketed to $25,000. To deny that these increases impose hardship, when they come out of the pockets of a retiree population with an average annual pension income of just $30,000 is, to use your word, absurd.

The Editorial Board of the Register is certainly entitled to its opinion regarding this dispute. But the Register’s readers deserve better than an editorial that shows so little understanding of, or concern for, the facts of this important case.

Retired Employees Association of Orange County
Linda Robinson and Doug Storm, Co-presidents

About Over But Not Out

A retired Orange County employee, and moderate Republican. The editor seriously does not know OBNO's identity as did not the former editor, but his point of view is obviously interesting and valued.