The Sunnyvale Sun

News

Lifetime health perk is reduced for council

By Stephen Baxter

Pressured by some vocal residents, the Sunnyvale City Council voted unanimously on Feb. 13 to reduce the city's cost for retiree health benefits for future city council members.

The council also voted 5-2 to limit further the current council's health benefits while on the job. Councilman John Howe and Vice Mayor Tony Spitaleri dissented; Spitaleri said changing the council's benefits retroactively was bad policy.

The decisions came after more than a dozen residents spoke at the meeting about lifetime health benefits for council members, with some lashing out at the council for voting Jan. 30 to reduce but not eliminate the perk. Others defended it, saying the city should supplement council members' part-time salary of about $20,000 to help lure the best candidates.

"We want to be attracting the best and the brightest," said Jim Griffith, chairman of the Sunnyvale Library Board.

Three council members receive health care through the city at an annual cost of about $63,000, and five retired councilmembers get retiree benefits that cost about $41,000 a year, according to city spokesman John Pilger. The city's budget is nearly $240 million.

Councilman Chris Moylan and others have said the lifetime benefits perk is bad in principle.

Council members age 50 or older who have served for five years can receive lifetime health benefits, but the city's contribution is now the minimum required by the California Public Employees Retirement System. The decision immediately saves the city $19,000 a year, Pilger said.

Once a council member accepts benefits through the city, the system requires it to continue into retirement. That rule stopped the council from eliminating lifetime benefits entirely.

Spitaleri initiated the first vote last week to lower retiree health benefits, and he said he was pleased with the outcome.

"I felt that the message was no more lifetime benefits ... I think we addressed the most pivotal issue," he said.

Resident Jeanne Lamar, who sat quietly at the council meeting past midnight, said the perk was excessive. "I want them to get something decent while they're here, but lifetime is a lot," she said.