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Negotiating Against The Wind Las Vegas, Nevada October 21st and 22nd Golden Nugget Hotel POLICEPAY will present a negotiation seminar for police associations that addresses current economic and political reality. No “pie in the sky” claims, no secret tricks, no condemnation of management, just practical advice that works – at least most of time. The program that we advocate requires a lot of time and hard work. There are no shortcuts or easy solutions. If you are tired of having a constant war with your employer or sick of getting run over by your employer, come hear what we have to say. It is not your grandfather’s negotiating strategy. The human mind is constantly evolving and expanding. What worked yesterday, may not work today. Some concepts hold true forever – not many in politics. $500 for one person $1,000 for three persons from your association We will have a brochure ready shortly. In the meantime you can call to register - (405) 701-8616 Is Your City Claiming It Is Broke? Sure, the economy took a dive, but did you know that the economy started to recover last summer? Did you know that unemployment is not an indicator of what is to come? Did you know that local governments lag behind the national economy by about six to eight months? Are you being told that your city’s revenue will continue to decline for several more years to come? Are you being threatened with layoffs unless you make major concessions? Are dissonant members of your department waiting on the sidelines to make a hostile takeover move the minute you decide which “poison” to take – pay cuts or layoffs? Is your life miserable because of these issues? Want to do something about it? (405) 701-8616 Public Safety Pensions - Can We Talk? Police and fire pensions have become the villains of the 21st century - welfare for fat cats.  Let me ask you a question.  Can you listen to a defense of public safety pensions without going into a cult like melt down?  I did not ask you to agree, only to listen without going into a trance and speaking in tongues. Okay, let's begin with that wicked 90% pension.  What does a 90% pension mean to us?  To me it means a pension equal to 90% of the last year of employment.  Is that your definition?  Did you know that most public safety pensions are based an average of the last three years of employment, not just the last year.  If we assume a 5% growth rate in wages, a 90% pension using the last three years is only equal to 86% of the last year's pay.  Did you know that the typical public safety employer is only paying 2/3 of the cost of the pension?  The employee is paying 1/3.  The only benefit to the employee is the amount that the employer is paying.  The rest is the employee's  money.  Now, the 90% pension is only a 57% pension. Okay, maybe it is not as obscene as you originally thought, but it is too expensive.  Do you know what annual contribution is required to fund a "90% pension"?  How about 25% of wages?  That's right - 25%.  That is the total contribution, employer and employee - 16.67% by the employer and 8.33%.  I know, you have read about some city in California that is having to pay 40%.  Trust me, 25% is the right number.  I know what you are thinking - "You better have a really good explanation Mr. Wisenheimer."  Hear me out. In California, they have a modified "knee jerk" funding mechanism to determine the annual contribution rate.  Did you know that many California cities paid nothing into their pension plans during the 1990's?  Didn't know that did you?  Wonder how they got away with it?  Using the short sighted valuation methodology in California, many pension plan were showing to be over-funded - no contribution required.  Then when the stock market took a plunge, the same pension plans were suddenly under-funded.  The "calculations" showed that large contributions were needed.  Cities began screaming like smashed cats.  Another thing added to this confrontation with reality.  Previously, most public safety employees were earning a 75% pension.  Many cities increased the 30 year pension from 75% to 90% and grandfathered in all people currently employed.  It does not require a PHD in mathematics to determine that a pension 100% funded is suddenly 83% funded.  There is no free lunch. That is not all.  Currently, there is a political move to change the assumptions used by actuaries.  It appears that the California Public Employees Retirement System (CALPERS) is going to surrender to this insanity.  So, what is the solution?  Easy, make all contribution rates based on long-term assumptions, not year-to-year assumptions.  25% needs to be contributed every year, good or bad.  If a city decides to grand-father in new benefits, it should be amortized over 15 years and shown as a separate payment.  The sales for Rolaids should decline sharply. Can't believe it all that simple? It is.  Jump on here and blast me into orbit with your comments.  I like 'em.  I look forward to hearing from you, my friends. Texas' Largest Police Union Joins Forces With PolicePay.net By: PR Newswire Jan. 25, 2010 01:05 PM STIN, Texas, Jan. 25 /PRNewswire-USNewswire/ -- Local law enforcement unions across the state will soon have a powerful new tool available during collective bargaining negotiations and discussions with local elected officials about officer pay and benefits. This week the state's largest law enforcement organization has announced an exclusive new partnership in Texas with the nationally renowned financial research AU group Policepay.net. "The members of the CLEAT (Combined Law Enforcement Associations of Texas) executive board are excited about this joint venture. This agreement is the culmination of lengthy discussions and negotiations between the two entities," said Charley Wilkison, Public Affairs Director. "Policepay.net is known across the U.S. for its reputation of conducting forensic financial discovery on government and political subdivision budgets especially as it relates to police officer pay, benefits and pensions," he said. CLEAT is making this move as part of its long-term strategic plan to free up employees, move more contract negotiators, union organizers and lawyers into the field where officers will have more access to regional services. "For the past 30 years most of this kind of research has been done inside our organization and our employees have done a good job but this arrangement will bring the subject matter experts in to work exclusively for our members in Texas," Wilkison said. "During tough economic times some city and county bureaucrats use the temporary circumstances to make cuts in public safety that hurt officers while shifting budget priorities to pet projects and cutting secret deals that benefit themselves and their cronies. Our board of directors wanted to send the strongest possible response to these kinds of tactics," he said. The exclusive agreement will immediately impact ongoing and future financial research projects for all affiliates of CLEAT including 17,800 full-time dues paying members and over 80 local law enforcement unions. CLEAT is the state's largest law enforcement organization. SOURCE Combined Law Enforcement Associations of Texas Published Jan. 25, 2010 Copyright © 2010 SYS-CON Media, Inc. — All Rights Reserved. Syndicated stories and blog feeds, all rights reserved by the author			Need Lawyers and Bean Counters? Wrong place pal. Exit Now! You won’t find that here – no green eye shades – no arm garters. Are you in the fight of your life? About to be run over by a political locomotive? Has your game plan tanked? Are malcontents out to lynch you? Is the finance director pissin’ on your boots and telling you it is raining. You have found the right place. Come on in. All of this business of governmental finance and compensation comparability is difficult and complicated. Go it alone and you will get shot down. We guarantee you that we will not be gunned down or intimidated. We are ready, willing, able, available and packing 24-7. Looking for the conventional? Look elsewhere. You will not find it here. We do not habeas your corpus or duces your tecum. We do not see public sector collective bargaining as a legal process or a financial transaction. We see it for what it is – a political process. Oh, we know governmental finance and statistics inside and out, but they are only tools and vehicles. We have just one goal - results. Look at our client list above. Either we have something going for us or we are the biggest con artists since P.T. Barnum. Does that even matter to you? Do you really want to go up against these guys by yourself? You know, you don’t have to. I want to give you the best advice of your life. Call (405) 701-8616 Conventional Economic Wisdom aka The Talking Heads On The TV DOWN DOWN DOWN (Al Gore/Keith Olbermann view) Is this how you see the current economy? Quit watching television. It is all lies. Here are the facts. The economy is starting to soar. Real economic growth last Quarter was 5.9%. Real Productivity growth last quarter was 6.9% UP UP UP Worst Economy In 50 Years? No, Biggest Lie In 50 Years! Confused? (405) 701-8616 California Pension Reform Goes Down In Flames The battle is over.  California Public Pensions have survived the onslaught by the conservative right.   Marcia Fritz, a Certified Public Accountant, and Vice Chairman of California Foundation for Fiscal Responsibility, officially "threw in the towel."  Marcia is a good and honest person, who is a worthy opponent, but in the end she and her fellow fiscal conservatives did not have the money and votes to achieve their goal.  While she pledged to try again, the opportunity has probably passed by. The current "crisis" with public pensions in California is more a function of a "knee jerk funding scheme" than economic reality.  Most of the "underfunding" today is simply the result of the decline in stock prices.  Now that the economy is in the recovery stage, most of the underfunding will evaporate. Public employees in California need to wake up and make their pensions stealthier than they are today.  Few citizens understand that pensions are only payroll reduction plans.  A majority see public employee's pensions as welfare. Economy Leaps Forward DO NOT SIGN CONCESSION AGREEMENTS!!! The economy for the 4th quarter of 2009 grew at a record pace - 5.7%, even after removing inflation. The economy out-performed our estimates by a small amount. It totally discredited the pop culture prophets of the media, who were predicting the apocalypse. The economy began to grow again last August and has gathered a large head of steam. Hang on to your hats. The economy is about to explode, but so will inflation - compare today to the sixties and early seventies. However, local governments typically lag the overall economy by about six months. The current quarter will have the first signs of growth for most cities. The turnaround will not be visible for several months because of the lag in reporting. Once the good news starts rolling out, cities will go into a prevent defense, delaying the release of financial data and talking about so called "Double Dip Recessions." Those who would rip the financial heart out of your police department will not go away quietly, but kicking and screaming. Currently, these are heady days for the "slash and cut" crowd, but it is all about to end. Hold off on making any concessions until we are able to further analyze the current economic data. It is our goal to have this done in about seven to ten days. What would I tell the unions who are being forced to make the unpleasant choice between large pay cuts or large lay offs? Take the lay offs! You can help those laid off with financial assistance. Once the economic leverage for the political extortion melts away, the cities will start undoing their self-mutilation to public safety. Any economic concessions will be very difficult to recover. Do not attack politicians - any politicians. Just lay low and stay under the radar. Put your effort into controlling your membership. You have to keep them on board and under control. If you are currently in contract negotiations, go into the delay game. It is better to operate with an expired contract for a year than it is to make a deal with a gun to your head. You need to develop a strategic plan that goes out further than the next contract. Timing of things is very important. Keep your head up and do not become discouraged. Relief is on the way - soon. We will show you where the rocks are in the financial rapids. We will be talking with you again - soon. 2nd Edition - Edited by my proofreader in Florida “The Keys To The Game” 1 - Compensation Study 2 - Financial Forensics 3 - Negotiating Strategy 4 – Find The “Go To” Guy POLICEPAY Handbooks POLICEPAY Articles The POLICEPAY Journal The POLICEPAY Update POLICEPAY Client Log In