Homan Testifies on County's Pension Surprise
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Baltimore County Administrative Officer Fred Homan is scheduled to appear (before the House Appropriations Committee Tuesday to testify in favor of a bill that would reduce pension benefits to some county employees and retirees.
The bill was not part of County Executive Kevin Kamenetz's legislative package that was announced last month. Indeed, the legislation was introduced by Del. Adrienne Jones about three weeks ago without any announcement by the county.
The introduction of the legislation follows a Harford County Circuit Court decision involving provisions governing how the county credits employees in the pension system for their service in state government.
Currently, state law limits how much the county can reduce an employee's pension payments for state government service that didn't require contributions from the employee.
Brian Rowe, a former county auditor, and another employee each sued the county separately over the county's attempt to reduce their pension payments by the amount of the missed contribution payments plus nearly 8 percent interest compounded monthly.
In the Rowe case, the county lost and is appealing.
Following the May decision, the county also attempted to have Virginia Barnhart, a Towson-based lawyer and former county attorney, disqualified from representing Rowe and other county employees. In October, a state court rejected the county's claim.
Barnhart declined to comment on the pending legislation because of ongoing litigation with the county.
The bill also comes just months after county officials were criticized for opting into a pension loophole that will allow Kamenetz and former Councilmen Vince Gardina and Sam Moxley to defer their council pensions and remain in the county pension system while earning credit for their new jobs.
The bill appears to affect at least 150 county employees and retirees who worked for government entities—such as the state, Baltimore City and Harford County—that had pension plans that did not require the employee to contribute toward their own retirement.
Baltimore County has a system that requires employees to contribute 100 percent toward their own retirement. The county invests the money and pays a 5 percent interest rate compounded annually.
Under current state law, government employees who move from a non-contributory system to a contributory system must be given credit for their time served. The law then allows the county to reduce the final pension payment to account for the payments that the employees never made into the system plus 5 percent interest compounded annually.
The county wants to be exempted from that system and allowed to deduct higher rates of interest compounded at a monthly rate—an amount that could as much as double the deductions the county could take from retirees under the current law.
The change, if approved, would affect current employees and those who retired after July 1, 2007.
So far the county has been silent on the bill.
Don Mohler, a county spokesman, stressed the importance of the bill to the county in a brief interview last week.
Mohler said the change could save the county as much as $400,000 annually (assuming that all the affected employees ultimately retire from the county at the same time).
That $400,000 in savings is in addition to the deductions the county is already allowed to take under current law.
Mohler referred additional questions to Homan and said the county administrative officer would respond via email.
Late Monday, Mohler said such a response would not be forthcoming but said Homan's testimony before the committee should provide the necessary information.
brenda ruminer
12:44 pm on Tuesday, February 28, 2012
This is so hypocritical, it boggles the mind. Mr. Homan is the one who behind the scenes allowed Kamenetz, Moxley and Gardina to "retire" on a Sunday!, and return to work the next day so they could collect two pensions. That will cost the county over $1M if the Executive serves two terms. Since Mr. Homan will answer questions via e-mail, can you please ask him whether any county employee in history has been allowed to retire on a Sunday and return to work the next day! Also ask him why that legislation allowing the double dipping was not advertised and discussed at a public Council meeting. When he was asked about his double pension by the Sunpapers, Mr. Kamenetz said "no comment." Perhaps Mr. Homan will provide us with some answers. If any Legislators in Annapolis had any guts, they would ask him these same questions, and ask why he is vindictively pursuing the former auditor and others in his position when he at the same time will cut behind the scenes secret pension deals for the man who kept him in a $200,000 year job! Sickening.
johnny towson
2:26 pm on Tuesday, February 28, 2012
Perhaps this is the start of the Baltimore County Waterloo, "The old guard dies, but never surrenders" The discrimination cases and the above described manipulation of the pension system fit like sock and shoe. Using year to year tactics to "present" a balanced budget, fiscal shell games and leaky ledgers have lost their ability to deflect attention and defer costs for another day. All of the dirty deeds need to be aired this time around, clean house and start as fresh as we can. The County Council can bring the details to better light or remain under the grip of the County's administration. I pray for the Council's courage to to step out of the shadows and make a stand.
RARE MARYLAND INDEPENDENT
5:18 pm on Tuesday, February 28, 2012
Question:
Where is the media on this? Why are these sweatheart deals not on our local news every evening. Why is the media accepting "no comment" from the highest office holder in Baltimore County?
Thank goodness for The Patch to bring information out in the public. The Patch needs to be required reading for all Baltimore County residents. The politicians want to keep this quiet, but don't count on it.
Also - look at what is happening. What are our leaders looking to cut - pensions of public sector employees. Isn't this close to what is appening in Ohio and Wisconsin and the national media is all over it. Why not here? Could it be that the leaders in Wisconsin and Ohio have an "R" next to their name yet here they have a "D" next to their name?
I guess if they don't report it, it never happened.
RARE MARYLAND INDEPENDENT
11:14 pm on Tuesday, February 28, 2012
So this is happening and what is one of Channel 2's lead stories.
LEAP YEAR BABIES.
They should be ashamed of themselves.
Buzz Beeler
5:57 pm on Tuesday, February 28, 2012
This is one of the few times in my life I'm left speechless. The gall of Kamenetz and Homan is beyond belief. All of the wheeling and dealing going on out there and they come up with this.
How much money has Homan's decisions cost the county over the years? Can't wait to hear the deal on Segrams and the Government Center. Sorry, I forgot about Fort Howard and Yorkway. Remember folks, March 27 in Dundalk for the zoning hearing. I have yet to see them make a decision that had anyone but themselves in mind. The sad part is they are stepping on the taxpayers to make sure they get their goodies.
Rare MD Independent, I have said this over and over, it's a question of leadership in the county and sadly there is none, you have to know someone, then it's done deal.
Brenda, what do you want to bet John, Jr. is the one asking the questions?
Freddy
9:25 pm on Tuesday, February 28, 2012
Buzz,
Heard a little rumor between Johnny O’s buddy Vontran with his Seagram’s property and the North Point County property. Heard it may be just a switch in properties. The county takes over Seagram’s and Vontran takes over the multimillion dollar property on Merritt Blvd. If rumor is true I feel another Yorkway deal in the making.
Kenny Pahr
11:56 pm on Tuesday, February 28, 2012
I miss Joe
Buzz Beeler
6:05 pm on Tuesday, February 28, 2012
Don't expect Olszewski, Quirk and some others to do a darn thing except to rubber stamp the the same ole same ole.
The only hope right now is Marks, and maybe Almond, other than that, it's a guessing game.
The sad part is they play by their own rules and use the taxpayers to finance their special interest deals. I say that without reservation. They bring this on themselves. Like Johnny said, after years of shell games and let's make a deal, the well has run dry.
Buck Harmon
6:09 pm on Tuesday, February 28, 2012
Any elected official public servant that takes advantage of a loop hole in any law should be first tarred, then feathered and sent on their way out of politics..
Buzz Beeler
7:29 am on Wednesday, February 29, 2012
Buck, I second that motion! All in favor say I!
M. Sullivan
9:40 am on Wednesday, February 29, 2012
Aye !
These guys need to be investigated by the Justice Department for their wheeling and dealing. If not illegal, their actions are certainly unethical, and they should be forced out of office before they can steal any more of our tax dollars.
Buzz Beeler
9:32 am on Wednesday, February 29, 2012
Freddy, not sure on the legality of that. I'll check today. There is supposed to be a meeting tonight at the Dundalk Renascence Corp. regarding the Seagrams property and plans. Vontran is supposed to be there to make the presentation.
I called the DRC to get more details and was first told there is nothing on the agenda. Then I reminded them of an email and they suddenly remembered. This will not go down easily with the community. Traffic would be a nightmare and where is the money coming from?
The perplexing part is the short notice on the meeting.
I should have an interesting blog after last nights NHCA Community meeting last night. Also ran into Del. McDonough on the problems with the county and state's budget woes.
Momofmany
11:08 am on Wednesday, February 29, 2012
This is just "business as usual" with the county govt. You get what you vote for and here it is just "typical" "D" political muscling, status quo and the continued legacy of the "old guard" lead by Mr. Homan and don't forget those who have been brought back into the fold such as Arnold, Donald P. Hutchinson and those department heads serving for > ten years. Where does it all end????? It's certainly not about saving money but rather just shuffling things around while schools, and other infrastructure just crumble. But then again you can go to Turner's station and enjoy their third community center in a decade or how about a swim at the center in Randallstown! Politics...............?????????????
John Dingedahl
11:20 am on Wednesday, February 29, 2012
There is an editoral in the 2/29/2012 Sunpapers about this. I don't agree with the editoral staff of the Sunpapers about 99% of the time, but they are right on regarding the double dipping done by elected officials in Balto. Cnty. especially by Kamenetz, Gardinia,and Moxley. I think the council should suggest and enact a charter referendum regarding pensions for elected officials (one per) and put it as a amendment to the county charter and let the voters decide.
Sean Douglas Franklin
9:47 pm on Wednesday, February 29, 2012
So if they want to retroactively take county pensions from the 'little guy.' Can legislation be passed to retroactively take back there pensions? Isn't some department head double dipping as well?
Buzz Beeler
10:25 pm on Wednesday, February 29, 2012
Sean, you are correct and there is more than one. Not sure on the legislation aspect. The county makes it up as they go along. They won't stop until someone steps in and stops them. SOP (standard operating procedure) as they say.
I don't invision them giving up anything not after they made the decision to vote for their goodies.
Here is a supporting theme on Bryan's stroy. You know it's bad when the Sun takes a stand against a Democratic.
http://www.baltimoresun.com/news/opinion/editorial/bs-ed-baltimore-county-pension-20120228,0,7986217.story