Accrued benefits obligation to employees up 113% in 5 Years

The following letter from Wayne Schulstad was sent to Mayor Ruttan and Nanaimo City Councillors May 16, 2009

Attn : Mayor and Council

Dear Mr. Mayor : Re: Accrued Benefit Obligation

I trust you have taken the opportunity to review the City’s Accrued Benefit Obligation as outlined in the recently issued 2009 Financial Report. But just in case you haven’t, the financial figures for the latest year end, and those going back to 2004, are listed below. This liability to taxpayers represents an estimate of the amount of accumulated termination benefits and earned sick leave for City employees as of December 31 for the year noted.

Read the balance of the letter here: Accrued Benefit Obligation

Addendum

This addendum includes Note 1(f) to the Financial Statements for 2007.The explanation provided is “In 2007,the accumulated sick leave has been amended to include a calculation for active sick leave”.

Call me a cynic if you wish,but all this means to me is that City staff are increasing the taxpayers obligation, thereby ensuring their “entitlements ” are protected.

Addendum II

This addendum includes information on the Municipal Pension Plan. Note 18 confirms the contribution of $3,468,581 into the employees plan by the taxpayer in 2009. This plan is available to union personnel and non-union management staff.
Wayne Schulstad
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