The city should push forward quickly with plans to move excess pension fund money into a newly mandated trust account to pay for retirees’ health benefits, says freshman city Councilor Ken Cockayne.
“This fund is a huge issue,” Cockayne said, and crucially important if officials want to keep property taxes from rising in the years ahead.
“I’m worried about the taxpayers. That’s the bottom line,” he said.
Bristol needs to sock away at least $77 million during the next couple of decades to cover the health care costs that city workers are set to receive after they retire from government service. So far, it has a bit more than $1 million in the trust fund.
City Comptroller Glenn Klocko and members of the Board of Finance have already indicated they would like to pursue the possibility of dipping into pension trust funds that are flush with cash in order to pump some more money into the post-retirement benefits trust fund that new accounting standards mandate.
Cockayne said that city unions are fighting the idea even though the new fund will benefit the same people the pension funds do.
From Cockayne’s point of view, “union money is still being used for the union purposes” since the same people benefit either way.
Union officials have said they’re not necessarily opposed to the idea, but argue it has to be negotiated. They’d like to receive something in return for easing the burden on city finances.
Cockayne, a Republican who was elected in November, said that the unions are basically saying the city should have excessively funded trust funds for future pension payments while socking taxpayers to create a new fund.
“Why does the union have to always get something for doing something that’s right, for the taxpayers and city that is paying their pay?” Cockayne said.
He said he’s going to push hard on the issue despite the difficulty of opposing city unions.
“It might be an uphill battle since a few of the council members are union members,” Cockayne said.
The city’s pension funds have racked up more than $500 million – about twice what they need to pay out – by investing wisely in stocks, bonds, real estate and more since starting the funds back in 1978.
If the pension funds can also pay off the health care benefits, that’s a double savings for taxpayers that few if any communities in the country have the capacity to pull off.
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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
33 comments:
RIP
Ken Cockayne
Buzz around city hall is that Cockayne and Rosenthal had a huge blow out yesterday and Cockayne had Rosenthal in the Mayors office shortly after. Does anyone know what happened?
Go Ken! This is just prudent money management!!The union doesn't have the right to penalize the city for good investment returns. We are funding future promises that we already made to the employees. How can that be a bad thing?
Again, I'm "high" on Cockayne!
This is a topic that was suggested some time back (too bad Cockayne wasn't following things all along), and has to be properly thought out.
Again, Cockayne jumping on the bandwagon without knowing who is driving and where it is going.
The cart before the horse,remember wages and benefits are collectively bargained for. Cockayne once again grandstanding,Amazing this young man has the energy to think out loud,do your homework kid.
Don't worry ..... artie will put an end to kennys' crusade to help save bristol ...... after all , why do you think the unions bought him ? ;-)
Here comes all the union attacts!!
It's nice too see someone standing up for the taxpayers for a change!!
Where has Ken Cockayne been the past few years?
Seems like rookies like him think that they have all the answers and that NOBODY before them was doing anything.
Maybe he is listening to the wrong people and is being used.
Wake up Ken, before you do real damage, to yourself.
Word that I got was that Rosenthal had some of his cronies try to put pressure on Cockayne to back off.
Apparently didn't work, as it didn't with Stortz and McCauley, but did with Minor and Ferguson.
Doubt that we will ever get the story: maybe Ward should step in and find out what happened and is happening.
A shame when someones business is jeopardized because they stuck totheir guns.
to the 2:33 poster: if benefits and wages are bargained for then can we assume you are opposed to the attempted cola increase which was not part of a bargaining agreement
Based on the comments from our Union bretheren...they are scared. But really, there is no reason to be scared. They sould not be dumb about this either as the 11:47 and the 2:31 posters are.
For these Union people to suggest that they should get something for the good management of their and the TAXPAYERS money is sssosooooo anoying. If they want that I say put their labor contracts to a vote of the tax payers by a referendum. I will bet the farm the union boys and girls will lose that one. Don't bite the hand that feeds you boys.
GO KEN...where can I send my campaign contribution for your Mayoral bid?
I wonder if "Real Estate " aget Ken Cockayne would like to donate his pension funds to be invested. Remember when you invest other peoples money the stock market might not co-operate with you. But obviously Ken don't care because it's not his money or pension at stake.
Ken's an insurance agent not RE.
I would LOVE to have the benefits a town employee has!!Please folks we need to take back our tax money from the unions!!
I think 5:38pm is right, how about the tax payer vote on what the union get !! I bet you wouldn't get half of what you have now !!
There are two groups of people you do not want watching your money. Banks and insurance people.Ken needs to get an education on keeping grand statements about other peoples money in check.
Poster 6:24
Must be one of the unions brightest! Doesn't even know the facts and ready to hammer someone!
Learn before you open your mouth! the Councilmen is an Insurance Agent!
AND YOUR TALKING ABOUT INVESTMENTS! OH BOY ARE YOU INTROUBLE. Dont worry......Arty will take care of you all!!
Be interesting to see how this administration (Ward) deals with the Union Contracts that are due.
Will the media, will Cockayne, keep us informed?
city workers deserve everything they get, it's all contracted. if you want those benefits, get a city job, stop complaining.
.....my goodness, I encourage input on sites such as this but not by the same few political activists who hide behind insinuation, hyperbole and political rhetoric rather than anything of substance.
Sad part is that I doubt that any one of them would have the guts to repeat any of their vengence in person to any of their charges. This lack of guts is the reason that "anonymous" is the name of choice - cowards.
4:57 Poster...and your name is where? You hypocrite.
We need fewer union hacks in this city, more police and fireman...maybe...but greedy seedy union hacks need to go...glad many of those boi's are retiring out now...maybe the newer city employees will be more intelligent.
Anon Y. Mous
"This is a topic that was suggested some time back (too bad Cockayne wasn't following things all along), and has to be properly thought out.
Again, Cockayne jumping on the bandwagon without knowing who is driving and where it is going."
This topic has been talked about for a while, but no one has ever had the courage to push it forward. All the candidates endorsed by the unions kept silent about this. All the candidates not endorsed by the unions were too chicken, then you have the other candidates who are union memebers. Say all the negatives you want about Cockayne, but he is taking on the difficult issues and is really moving Bristol forward.
Cockayne is pushing the right way on this one. I be the union guys are really pissed now that Lydem didn't get in.
I doubt that the union guys are not in favor of this idea that was proposed several years ago by some union guys . The issue comes down to one thing getting it done right.There is more here than saving tax dollars. AS it is the over funding is already saving the tax payers a lot of money in their bond rates.Keep in mind also that it took a few years to get the pension fund to were it is now .Alot of people contributed alot of time and energy to get there.
Keep pushing Ken. You're doing the right thing.
I do not agree that Mr. Cockayne is doing the right thing. The pension fund is well funded thanks to smart investing. They shouldn't be penalized by stealing the money they rightfully earned because people are jealous of what has been accomplished by the management of this fund. What will happen if we "tap into" the money? When will it stop? How much will the city take and then come to rely on just like the so called "temporary" income tax that was imposed in 1991? Once you start taking that money, you'll never stop. This city will become dependent on it.
I say don't touch it. It doesn't belong to us. It belongs to those who contributed to it and hired the right people to invest it. The taxpayers aren't entitled to it and I'm a taxpayer. Look at welfare. It was supposed to be a hand up but has turned into a major generation after generation handout. Once this fund is raided it'll be like welfare. Free money for the city and there will always be a justification to take from it. No amount will ever be enough and before you know it these people will be without a pension thanks to a greedy coucilman who wants to take from a fund that's not his under the guise of "I'm doing it all for the taxpayers." Art Mocabee has his hands all over this idea, mark my words!
As someone already stated, if you're jealous that this pension fund is so well funded, then become a city employee, but stop trying to take what's not yours to take!!!!!
This is all spin.
It is about taking money from a pension fund to help pay for benefits for the same people that are receiving the pension. This is not raiding it to pay for other expenditures. Give me a break about the taxpayers not being entitled to it. The taxpayers are not taking it for themselves. It is about shifting it to pay for their (the pensioners) medical coverage after they retire. That money should not and will not be used for anything else. That fund is so overfunded b/c of great management, but that does not mean it should not, or can't be used to defray costs on medical coverage for municipal employees in retirement. A compromise may have to be reached, but people have to be realistic. Shifting some money, only helps everyone, the city of Bristol, taxpayers and city employees alike.
You completely gave yourself away as a democrat - union person with the comment about Art Mocabee. Good try though.
This IS tax payer money. REPEAT...TAX PAYER MONEY! Most of it in fact came from CITY CONTRIBUTIONS...where do you think the City gets it contribution from??? TAX PAYERS that is who!
The more you UNION HACKS whine about this the more likely it will become a HUGE issue and may even be petitioned on the ballot. You should stop hurting the workers who paid in with your give me more attitude towards this issue.
I do not support paying twice for post retirement benefits for city employees that Union Leadership is suggesting. Nice statement for a petition. I think a lot of folks will sign that one!
Watch out boi's!
I hope this turns into something big. The more the general population learns about this, hopefully the more vocal they will become. Ken is pushing for the right thing here, and hopefully non-union people will recognize this and support him later. He is truly putting Bristol First. The amount of money this will save taxpayers will huge.
Actually, were you trying to insult me by saying I'm a democrat? Oh I'm sooooo insulted!
Let me educate you on something. The city hasn't paid into the pension fund for more than ten years. The employees, I'll say it again, the EMPLOYEES continue to pay into the pension fund so it is NOT the taxpayers' money. The EMPLOYEES continue to fund the pension.
Another thing. This is not a "new idea" from Ken Cockayne. The union, and I'll say it again, the union has brought this forth to the city for years now and the city wouldn't negotiate with them on this particular matter, that is, up until now. So don't say that the union is not for it and don't say that the union isn't willing to negotiate. It's just that there has to be a give and take from both the city and the union. The union shouldn't just hand the money over unless the city is willing to give something in return. The union is looking out for the its members' best interests, as they should be. You wouldn't just hand something over without getting some sort of concession and that's the way the union is, too. I'm not a union employee, but that concept is a no brainer.
Just remember if we didn't have unions, safe working conditions would be nonexistent along with fair wages and fair benefits. If you're jealous of what the union workers have, then I suggest you get a union job.
There's pros and cons to unions and I'm not always happy with what they do, but in this instance there has to be negotiation. I don't feel it is right to just take the employees' money without giving them something else in return. It's not there to use carte blanche.
right on, last poster! Has anybody considered that Cockayne, being an insurance guy, belongs to an organization that looks out for his interests as an insurance guy? Of course he does. Don't you think that organization has a big influence on the insurance companies when it comes to the commissions the independent insurance guys received? The insurance business has an organization just like the unions where they, too, pay dues but they don't call it a union. I'm sure he has been helped by the insurance organization he belongs to so he needs to stop and think about what he is saying when he talks about unions.
Th edifference is that he is putting Bristol First, not his own interests.
And where on here does it say that he is pushing a new idea? It only says that he pushing a good idea. An idea that may have been brought up before, but was left to wither on the vine b/c past administrations were to chicken to attack it.
You are right about compromise though.
Let's face it. Mr. Cockayne has a habit of taking an idea and giving the "impression" it is something he came up with. You never see any disclaimers from him stating that the subject has been brought forth previously. For example, what he should say is "As has been stated previously" or "This topic has been looked at before." I know he's new, but it's important to give credit where credit is due. By the way, all the councilors are putting Bristol first. That is not just a slogan embodied by Republicans only.
It would not be right for the union to just hand over the money of city employees and the taxpayers shouldn't expect it. There has to be give and take and I'm sure there will be, but let's not blow this thing out of proportion. It will take level heads working out a plan that benefits everyone. This topic, along with many others, will be part of negotiations as it has been in the past. Maybe this time the city will sit up and take notice.
Where is Kenny C.?
Has he fallen in the rabbit hole with the othre Kenny?
We should be so lucky>
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