What is still bothering me about the Compensation data information included in my last posting?
Look at these examples for box 5 taken from the compensation data provided at the California State Controllers web page. http://lgcr.sco.ca.gov/EntityList.aspx?entity=County&load=ByDefault
My example below shows two similar classification from the county as far as position and salary range. Yet there is a 32,000 dollar difference between these two positions in regards to what wage amount would be reported to Medicare (Box 5 of W-2) why is that? I am aware that some elective deferrals will make box 5 higher than box 1 on a W-2 that is not my concern here. If you look at the data provided below you will find that there may be up to six positions with the same salary range and yet six different wages being reported in box 5 as well.
| Auditor-Controller | Asst Dept Ldr-exec | | $89,746 | $148,185 | $96,042Box 5 | 2% @ 57 | $1,560 | — | $3,183 |
| Auditor-Controller | Asst Dept Ldr-exec | | $89,746 | $148,185 | $128,459 Box 5 | 2% @ 57 | $2,080 | — | $4,301 |
I have highlighted several classifications below with similar pay ranges here are just a few of them.
$53,424 – $65220 six positions all reporting different totals in box 5 for wages
$61,555- $74,114 Three positions all reporting different totals in box 5 for wages
$89746- $148,185 four positions all reporting different totals in box 5 for wages
$75,136- $135,662 eight positions all reporting different totals in box 5 for wages
Mercer Human Resource Consulting
Retirement System Evaluation
County of Santa Barbara’
Retirement System Evaluation
County of Santa Barbara’
Mercer was concerned in the past and has had this to say about some of the practices by the SBCERS pension board.;
“Some practices and policies could jeopardize funding status in the future.
In current form there is a lack of transparency of the Pension Plan.”
In current form there is a lack of transparency of the Pension Plan.”
In this next example for box 5 how can you earn 37,255 in salary and only report 7,499 in box 5 of your W-2?
| Auditor-Controller | Admn Office Pro I | | $28,505 | $35,314 | $17,900 |
| Auditor-Controller | Admn Office Pro Ii | | $37,255 | $46,154 | $7,499 |
The Controllers Office has this definition for the column Total 2009 Wages Subject to Medicare (Box 5 of W-2): This column represents the amount of total wages subject to Medicare taxes as reported in Box 5 of the employee’s W-2. In the event an employee has no wages subject to Medicare, the local government was instructed to calculate this amount. The amounts listed may include, but are not limited to, wages, overtime, cash payments for vacation and sick leave, and bonus payments.
I went to the I.R.S. to see what they require for W-2 box 1 and 5.
Box 1—Wages, tips, other compensation. Show the total taxable wages, tips, and other compensation (before any payroll deductions) that you paid to your employee during the year. However, do not include elective deferrals (such as employee contributions to a section 401(k) or 403(b) plan) except section 501(c)(18) contributions. Include the following.Box 5: Medicare wages and tips. Box 5 reports the amount of wages subject to Medicare taxes. There is no maximum wage base for Medicare taxes. The amount shown in Box 5 may be larger than the amount shown in Box 1. Medicare wages includes any deferred compensation, 401k contributions, or other fringe benefits that are normally excluded from the regular income tax. In other words, the amount in Box 5 typically represents your entire compensation from your job.
So than how can we have only 7,499 being reported in box 5, when box 1 could be as high as 46,154?
How can we have 4500 variations of pay and benefits in this County? My second issues with Saturdays posting is under the column” Employees' Share of Pension Contributions” from the Compensation Data. In this next example
| Auditor-Controller | Audit Supervisor | | $83,027 | $101,358 | $39,071 | 2% @ 57 | $275 | — | $1,819 |
I wonder how the Pension can be billing the County by payroll totals. When a person who earns 101,358, 00 dollars a year is only be responsible for 275. Dollars as there share of pension contributions? Now all you have to do us look under that column below and you will see position after position is responsible for less than 1% of there salary. Let me be clear here the employees’ are not my target. I am just wondering how this Pension system works and who really funds it? Now I could really make this posting more complex by comparing the Compensation Data from other counties with ours but that would just be over kill. I am confused as to just what the problem is when Government officials like Mike Brown can abuse the pension system for there personal gain.
County CEO awarded controversial retirement package
Posted: Jul 23, 2010 6:28 PM by Ariel Wesler - Source: KSBY NewsUpdated: Jul 23, 2010 6:28 PM
In an era of budget cuts, Santa Barbara County's early retirement program is designed to save the county money, but for C.E.O. Mike Brown, it's apparently a different story.
As part of Brown's early retirement, the county is paying him 165-thousand dollars of two year service credit through the retirement board. More than 100 people have taken advantage of the incentive program, but in most cases, those positions will temporarily remain vacant until the county recovers the cost. That's not true in Brown's case.
While 119 employees accepted an early retirement offer from Santa Barbara County, C.E.O Mike Brown is costing them money in the way of $165,000.
Reporter: So you have an employee, Mr. Brown who's leaving as part of the early retirement program, getting a two year credit, but it's not saving the county money. is that right?
Supervisor Janet Wolf: "You know, you can look at it that way."
She says he's in a critical position that the county cannot afford to leave vacant, but she stresses the $165,000 is not a bonus.
"This is not a lump sum payment that's going to Mr. Brown. It's being payed to the retirement system to pay for his future retirement just like we're doing for everyone else," Wolf said.
I am not he only one who has concerns; Supervisor Gray then addressed her Ponzi scheme comment, saying the board was moving money “here and there,” even making reference to Bernie Madoff.
Santa Barbara
| Classification | Multiple Positions | Annual Salary Minimum | Annual Salary Maximum | Total 2009 Wages Subject to Medicare (Box 5 of W-2) | Applicable Defined Benefit Pension Formula | Employees' Share of Pension Contributions | Deferred Compensation | Health, Dental, Vision |
| Auditor-Controller | Accountant-auditor Ii | | $53,424 | $65,220 | $63,033 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Accountant-auditor Ii | | $53,424 | $65,220 | $35,685 | 2% @ 57 | $325 | — | $1,985 | ||||
| Auditor-Controller | Accountant-auditor Ii | | $53,424 | $65,220 | $61,080 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Accountant-auditor Ii | | $53,424 | $65,220 | $59,169 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Accountant-auditor Ii | | $53,424 | $65,220 | $71,133 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Accountant-auditor Ii | | $53,424 | $65,220 | $63,984 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Accountant-auditor Iii | | $61,555 | $75,144 | $79,477 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Accountant-auditor Iii | | $61,555 | $75,144 | $61,941 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Accountant-auditor Iii | | $61,555 | $75,144 | $61,578 | 2% @ 57 | $627 | — | $4,123 | ||||
| Auditor-Controller | Admn Office Pro I | | $28,505 | $35,314 | $17,900 | N/A | — | $268 | — | ||||
| Auditor-Controller | Admn Office Pro Ii | | $37,255 | $46,154 | $7,499 | N/A | — | $112 | — | ||||
| Auditor-Controller | Asst Dept Ldr-exec | | $89,746 | $148,185 | $123,282 | 2% @ 57 | $2,080 | — | $4,292 | ||||
| Auditor-Controller | Asst Dept Ldr-exec | | $89,746 | $148,185 | $148,148 | 2% @ 57 | $2,080 | — | $4,301 | ||||
| Auditor-Controller | Asst Dept Ldr-exec | | $89,746 | $148,185 | $128,459 | 2% @ 57 | $2,080 | — | $4,301 | ||||
| Auditor-Controller | Asst Dept Ldr-exec | | $89,746 | $148,185 | $96,042 | 2% @ 57 | $1,560 | — | $3,183 | ||||
| Auditor-Controller | Audit Supervisor | | $83,027 | $101,358 | $39,071 | 2% @ 57 | $275 | — | $1,819 | ||||
| Auditor-Controller | Cost Analyst Ii | | $68,351 | $83,443 | $83,494 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Cost Analyst Ii | | $68,351 | $83,443 | $77,688 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Cost Analyst Ii | | $68,351 | $83,443 | $89,424 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Dept/Corp Ldr-elected | | $116,878 | $194,102 | $198,402 | 2% @ 57 | $2,080 | — | $4,301 | ||||
| Auditor-Controller | Edp Computer Oper Iii | | $47,922 | $58,501 | $60,449 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Edp Network Tech I | | $48,160 | $58,794 | $13,676 | N/A | — | $205 | — | ||||
| Auditor-Controller | Edp Office Auto Coord Sr | | $63,360 | $77,350 | $67,048 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Edp Office Auto Spec Ii | | $80,903 | $98,766 | $92,275 | 2% @ 57 | $650 | — | $4,292 | ||||
| Auditor-Controller | Enterprise Ldr-gen | | $75,136 | $135,662 | $14,301 | N/A | — | — | — | ||||
| Auditor-Controller | Enterprise Ldr-gen | | $75,136 | $135,662 | $108,761 | 2% @ 57 | $2,080 | $272 | $4,127 | ||||
| Auditor-Controller | Enterprise Ldr-gen | | $75,136 | $135,662 | $93,140 | 2% @ 57 | $2,080 | $213 | $4,301 | ||||
| Auditor-Controller | Enterprise Ldr-gen | | $75,136 | $135,662 | $111,424 | 2% @ 57 | $2,080 | $277 | $4,301 | ||||
| Auditor-Controller | Enterprise Ldr-gen | | $75,136 | $135,662 | $89,989 | 2% @ 57 | $1,920 | $229 | $3,970 | ||||
| Auditor-Controller | Enterprise Ldr-gen | | $75,136 | $135,662 | $115,888 | 2% @ 57 | $2,080 | $271 | $4,123 | ||||
| Auditor-Controller | Enterprise Ldr-gen | | $75,136 | $135,662 | $83,344 | 2% @ 57 | $2,080 | $191 | $4,301 | ||||
| Auditor-Controller | Enterprise Ldr-gen | | $75,136 | $135,662 | $117,451 | 2% @ 57 | $2,080 | $275 | — | ||||
| Auditor-Controller | Financial Acct Analyst | | $70,709 | $86,323 | $91,148 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Financial Acct Analyst | | $70,709 | $86,323 | $80,356 | 2% @ 57 | $650 | — | $4,301 | ||||
| Auditor-Controller | Financial Acct Analyst-r | | $73,222 | $89,389 | $91,209 | 2% @ 57 | $780 | — | $4,301 | ||||
| Auditor-Controller | Financial Office Pro Expert-res | | $65,884 | $81,618 | $29,833 | 2% @ 57 | $330 | — | $1,654 | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $7,206 | N/A | — | $108 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $2,599 | N/A | — | $38 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $6,337 | N/A | — | $95 | — | ||||
| Auditor-Controller | Financial Office Pro I | C | $28,933 | $35,844 | $10,991 | N/A | — | $164 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $10,766 | N/A | — | $161 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $8,103 | N/A | — | $121 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $3,081 | N/A | — | $46 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $4,779 | N/A | — | $71 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $1,531 | N/A | — | $22 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $5,693 | N/A | — | $85 | — | ||||
| Auditor-Controller | Financial Office Pro I | | $28,933 | $35,844 | $7,365 | N/A | — | $110 | — | ||||
| Auditor-Controller | Financial Office Pro Ii | | $37,255 | $46,154 | $47,206 | 2% @ 57 | $650 | — | $4,301 | ||||
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