retired, and between leaving cities service and the present future retiree state -- this clarifies that the coverage they will get will be in effect when they left service, and otherwise it would be a windfall. we believe that is unfair because we're not reducing the benefit in any way that they had when they left. supervisor elsbernd: the situation as they retired years ago. they show to retire, and lo and behold, they had no idea when they left city service -- they are not going to get that when fall -- windfall? >> this is true. this is particularly in the area of the pending coverage. supervisor elsbernd: the changes we need to adopt today.

>> by way of disclosure. i have already mentioned the so- called best thing retirement, which i think is the most significant. -- vesting retirement. they had 50,100 thousand control points, and we believed those would go up. not to exceed 3.5% a year, but to accord with the cost of living. it has roughly tracked what has happened with wages. these are affected distinctions that now exist. we also reject is so it -- i am trying to find some that are not corrections'.

we deleted some language that we determined was not necessary, regarding medicare and retiree health-care. we believe that was an option to deal with those in light of health care reform. the proposed bargaining units would only become members of the retirement system upon mutual agreement. labour requested language to be more specific on that point. i would say those of the main changes. supervisor elsbernd: the amendment itself. we have a lot of folks to were very interested. is there a way to get that on the website? >> yes. supervisor elsbernd: it is 64

pages? we did not want to print out copies of it. we will make copies of it available on the website, and if anyone wants to e-mail me or the board of supervisors, we will make sure you get a copy. >> we will put it up on the web site, along with the power point as well. supervisor weiner: -- supervisor elsbernd: thank you. can i ask you to come up? >> thank you. supervisor elsbernd: if you can give us an outline of for the comptroller is. >> sure, supervisor. and the director of the budget for the controller's office. there is a need for a

controller's letter. we received actuarial analysis yesterday. we also been in dense. -- we also have amendments. we need to have more costing available by the next measure. supervisor elsbernd: madam clerk, as i understand it, the chairmwoman has scheduled a special meeting of the rules committee for tuesday at 9:30? >> that is correct. supervisor elsbernd: so this item will be moved to the special meeting, tuesday at 9:30. >> excuse me, supervisor. it is 9:00. supervisor elsbernd: 9:00. are there any other items on the agenda? >> [unintelligible]

supervisor elsbernd: we will get another opportunity for members of the public to comment. thank you. a lot of members of the public have been winning a longtime. i would like to read the yellow cards that have been submitted. if you of not build one now, it would be helpful -- if you have not filled one out, it would be helpful. so, i will read a few names. if you could lineup after i do, that would be helpful. [reading names] please come forward. we will go with the lot minutes

for each speaker. >> thank you for hearing us, supervisors. i am employees by the city and county of san francisco. i look fo my retirement soon. i am speaking specifically about the changes in the structure of the health service board, and my concern is not necessarily we are eliminating one of the elected members in favor of an appointed member, but that the proposal as i understand the change of the majority vote frot really frightens me, because basically you are taking out the checks and balances that should be inherent in this kind of boat and i urge you to change that to maintain the five majority vote instead of the four. thank you. supervisor elsbernd: next

speaker, please. >> good afternoon, supervisors. in the executive director of local 21. i co-chaired negotiations with the city on the pension measure. is amazing to me after the stock-market decline, what wall street it did to public employee pensions and other benefit costs. and never ceases to amaze me. a lot of it is not fair, quite unfair, and there's a lot of political grandstanding around the country around the issue. despite that, there is no denying the downturn has had a negative impact on revenues for local governments and state governments, and certainly for our city. and it has also had an incredible impact on pensions for cities like san francisco. there's just no way of denying

that, however unfair some of the politics to run the issue are. it is amazing how well the city functions and how strong it is financially. it is of equal concern to those of us who are city employees. we may have our differences, but there is no difference that we want as strong and functioning as the service as possible. it is with that spirit that unions after themselves into six months of extraordinarily hard work -- hard work. it is our opinion that is very fair and balanced, fair in terms of how much more the city is going to pay and how much more

the city employees are going to be paid -- if i could have a minute? supervisor elsbernd: if you could just tell me how much more fair and balanced this proposal list? >> it is fair and balanced between high paid/low-paid, city employees you have not yet hired, and active city employees to have retired as we mentioned earlier, and in the future we will all share in the risk. it actually is as i see and experience what is happening in other government jurisdictions. this is an extraordinary document and something we can all be proud of. thank you. supervisor elsbernd: let me read out a few more names. come on, jean. [reading names] >> good afternoon. my names is jean thomas.

i have to take exception with the previous speaker. we retirees are not involved in any discussions. this is specifically concerning the health system board. i would like to point out the three and three you are proposing is not quite as beautiful as you would think because there is another phrase that says "if you cannot agree, then the controller has to have another nominee." all that has to happen is the three people the city designated, the city-appointed seats, the management seats will refuse to speak. so you have a 3 and 3 split on the board and the 30 days goes

by, according to what i have read, and then no actions -- there is no actions. the comptroller -- controller's nominee becomes the representative on the board. i do believe this is an egregious thing. and also notice that the legislative language specifically talks about reduced numbers, reduced numbers of medical providers. that means we will have fewer people we can go to. supposing we're going to someone on the city plan, a heart specialist, and they are not on the list. just think of that. i put this to you because that is going to be very unfair for a number of people who are elderly

and particularly el. -- particularly ill. that particular asset -- it is not fair on the health care thing. and think you should review this. i think it is basically very unfair. thank you. supervisor elsbernd: thank you. >> good afternoon, supervisors. i'm here on behalf of the executive benefits. i would like to talk about the changes made in the board. prior to the election, the makeup of the board was four appointed and reelected, but the vote was always the same. you needed a supermajority. they always maintained the balance.

they always had to have a person on the other side. the vote is a totally taken over by the city, which to me is very dangerous. there are things that of happen in the for the past few years, especially with the insurance companies. as you know, the insurance companies said the raids. unfortunately, some insurance companies donate a ton of money to other city programs. we have an incident where there is an interference from the mayor's office to our director who was trying to negotiate rates down from one of the insurance companies, and he was asked to keep the insurance company in, because of, in short, -- ia am sure, because of the benefits. i do not think there will be

checks and balances. the rates will raises, and the employees will pay the increase of those, not the city. thank you. supervisor elsbernd: thank you. next speaker, please. >> i have worked for 27 years as a gardener in rec and park. and i completely vote with the -- i completely agree with the last speaker. >> supervisor elsbernd, supervisor farrell, my name is richard rothman. i retired six years ago. weller was working, i helped draft -- while i was working, i helped draft prop b in 2008.

we had a lot issues. one is on page 8. changing the formula for the cola. everything that i have read -- and i did send your offices a citation, which was put out earlier this year, reinforcing these rights. basically, it said -- or my interpretation, i am not a lawyer -- the those rights could not be changed unless they were given equally in return, and i do not see anything being given in return. it is a dangerous principle. if they can take away the best investing right come up -- if they can take away this investing right, why can they take away others? i have always said retirees and current employees cannot have rights taken away. this very much concerns me.

also, the language that ms. callahan did not mention in the second drop that said it was the voters intention in 2008 that's -- that supplement the -- supplemental cola should only be paid out when the fund was fully funded. as someone who was in the negotiating room most of the time, there was no mention -- [chime] it only said if the fund was over the actuarial value. thank you. supervisor elsbernd: thank you. and >> i heard earlier by the need it -- about the need for transparency.

this proposed charter amendment seems to be very opaque, open to different interpretations. 264 pages long, we expect them to make important decisions about this. it covers some much territory with city workers, there should be three or four different charter amendments. the retirement system was in crisis in 2008 and 2009. it went from 11.5 -- $14 billion to $11 billion. in effect, the board of supervisors are yelling fire about the retirement system when the fire was 2008 and 2009. the fire is over, but we're being told that we have an

emergency. there is no longer a fire in the retirement system. we heard that the cost savings will take place in maybe 30 years. it is not exactly an urgent issue. we have heard that there is a consensus about this proposal, but the members have not been told about the so-called consensus and the members have not voted. many of us will oppose this proposal. all one big family. though we are not. >> i have been an active officer since 1972.

i have a retired city employee and i am also a member and have worked with plb as well. i agree with almost everything that has been said. one thing that i want to stress, during the supposedly fair agreement, retirees were locked out of this completely. we were not allowed to go to the meetings or expressed our concerns or viewpoints. many of us are very anxious. some things to do with the trust fund. even on the two-tiered system. i want to read something about the supplemental that is in the language that did not hear coming from mickey callahan.

the safety of the of the system being in poor shape, it is the second best funded in the united states. and, of course, we want to keep it that way. the city now has to contribute more. and at one point, they were contributing anything because of the investments. our investments are bad, and i want to say this thing about the supplemental. this change for current employees, people that are hired in terms of the actuarial value related to the supplement is going to impact much more on people that are receiving

between 20 and 27,000 a year. i cannot get the figures from the retirement system. but there are thousands of people that won't get the supplemental right now. they're not getting 46,000. they are getting below 27. without the supplemental, they will be in the toilet. supervisor campos: next speaker. >> i am the executive secretary of the police officers association and the chair protector of benefits. i do want to address the proposed changes. the health service system board, their main duty is to the board. it is their duty to watchdog the

budget. i don't believe changing the makeup of the health services system board and changing the voting majority is the way to do that. this thing has no debt meant -- direct financial benefit to the city. so why is it here? it is only to change the political perception while allowing the city to take full charge. it is buried in a slam dunk pension reform proposition that affects active employees. it is extremely important to retirees. if we are going to propose this change, it should stand alone so that it could receive the full attention of the public. nobody is going bill looked at the health system part of this.

health service system isn't going to get the full debate that we believe it should. we are also extremely worried about the unintended consequences. the health service system trust fund was depleted in prior acts of the city. if you give the control back to the city and the mayor's office , or it will not be influenced by the mayor's office, when and how it will be a 4-3 majority and retirees will have to pay for it. please don't allow this to happen. [applause] >> i am a retired lieutenant of san francisco police, a 20-year veteran. i am one of those natives, too.

i support everything larry said. a request you don't change this part of the health service board. gosh i am president of the san francisco veteran who police officers association hyperion i asked this board to change the makeup of the health service system as proposed in the new charter proposal. when we retired, and we were guaranteed and told him that we would have affordable health care for the rest of our lives. with this proposal, we have no voice. i ask you to turn down this proposal.

>> had the city's pension obligations are set to explode in the next four years. a hundred and $29 million. it demands a serious solution. i am leading a citizen led effort for the reform act of the november ballot. we've collected 47,000 signatures of voters. the reform act delivers reform that is fiscally sound, sustainable, and fair to all. by securing our fiscal future and protecting vital services. we need real pension reform now. in the not kick the can down the road any further. soon, the can is going to pull off a cliff. i want to thank the mayor and the many others that have worked

on this issue. unfortunately, respectfully, it falls short of the savings that our city needs. the mayor goes the cost sharing proposal will save $750 million over the next 10 years. the pension reform act will save the city 1.2 $5 billion over the next 10 years. simply put, it will save the city $500 million more over the next decade. think about what the hell by. we have cut summer school for kids, 10,000 students. we're talking many other drastic cuts. the pension contributions have to be fair. the mayor's plan treats employees that earned $100,000

the same as employees that earn $50,000. >> the numbers you are siding, a lot of those are not complete. your measure does not included in the other employees. your measure does not include that. as the comptroller does the full analysis rather than focus on the full contribution, there is a comprehensive nature to this proposal. i believe your measure is silent on health care. we're still waiting for the full analysis so i think it would be a better idea before we start throwing numbers out, let's wait until we get complete numbers.

>> but it is based on actual savings that the city will realize in the next four years. >> the report does not include the savings associated with that contribution. that report does not include the changes in retirement. those are dollars that we will save immediately. before we start throwing out numbers, let's get the complete report. what your siding is not the complete report. it is merely the report analyzing the floating contribution. there are more numbers to come. >> there are many reforms that aren't in the consensus proposal. those have to be cost-effective, too.

>> i am representing protect our benefits and the retired teachers. i want to talk about the service for a moment. a lot to remind you about the situation as it existed. it was passed by the voters and gave us a change it was essentially a mass. it was not functioning well. one of the main problems had to do decode can we shut the door? your time is being pause.