Take care of city healthcare retirement
Letter to the editor

On March 6, our city council voted to defer the city’s healthcare defined benefit payments for 15 years and to pay slightly more than $300,000 this year. The city’s liability approximated $3,800,000. The weak argument was used that this is what other cities have done and, therefore, it is fine for Mission Viejo.

Can you imagine paying your household mortgage on the current market value rather than on the acquisition cost? With health costs going up at 10 percent to 15 percent in some years, this liability plus the annual accrual payments actuarially will far exceed the city’s ability to liquidate the debt. Our council mortgaged our future without significant payment, leaving future generations with massive costs. All this has happened because our council has refused to make the painful choices this year.

Our city needs an amended plan to defined contribution requiring a two-tier system of old and new employees with an eligibility cap at Medicare, currently age 65.

Any investment returns when averaged will never exceed healthcare costs over the life of this deferral. How much have your healthcare costs gone up in the past 15 years? This decision was the worst possible choice for our taxpayers.

James Edward Woodin
Mission Viejo