SLO city retirees receive average pension of $90,000 a year

May 2, 2019


As California grapples with soaring unfunded pension liabilities, which are wreaking havoc on local government budgets, the city of San Luis Obispo has a rapidly expanding six-figure pension club, and its retirees are now receiving average retirement pay of approximately $90,000 a year. [Cal Coast Times]

Pension costs are continuing to rise throughout the county, though SLO leads the pack with the highest average pension and the most retirees collecting pensions. Thus, the total amount of payments made to SLO retirees, which has surpassed $20 million a year, far exceeds that of the other cities.

Full-career retirees from SLO received an average pension of $89,705 in 2018, with the top earner now collecting more than $175,000 annually in retirement pay. About 50 retired workers now receive six-figure pensions, according to Transparent California.

At $79,529, Paso Robles retirees had the second highest average pension followed by Pismo Beach at $76,927. The average pensions for Morro Bay, Atascadero, Grover Beach and Arroyo Grande were respectively $74,227, $72,039, $69,573 and $69,010.

In 2018, a total of 412 retirees received pensions from SLO. Next in line, Paso Robles had a total of 137 retirees receiving pensions. At the other end, Grover Beach had just 43 pensioners.

Last year, the total amount of payments made to SLO retirees was about $21.5 million.

San Luis Obispo, like all other cities in the county, is part of the California Public Employees Retirement System (CalPERS) and must make payments to the state agency to fund, in part, its pension plans.

SLO’s annual payments to CalPERS have increased to more than $10 million in recent years and are expected to exceed $20 million in the coming decade.

Pension costs are thus eating up a sizable percentage of the city budget, which currently totals $153 million. By comparison, SLO’s annual budget for paving roads in city neighborhoods is $7.6 million, or about half of what the city pays to CalPERS.

As is the case with other cities, San Luis Obispo is grappling with a decision made by the CalPERS board in late 2016 to lower its investment return forecasts. The decision forced agencies to increase their yearly contributions to CalPERS and resulted in SLO incurring a multi-million dollar budget shortfall.

Whereas the pensions of SLO retirees totaled $21.5 million, payments to retirees in Paso Robles, which cost the second most among SLO County cities, totaled only $6.1 million. Grover Beach retirees received the least, totaling just $1.5 million.

SLO’s highest earning pensioner is former city manager Ken Hampian. In 2018, Hampian received a pension of $175,366. Former city finance director Bill Statler received the second highest pension in 2018, $161,758.

Other notable SLO pensioners include current San Luis Obispo County Sheriff Ian Parkinson. Last year, Parkinson received a pension of $128,752 from the city of SLO in addition to the pay he received from the county.

Likewise, now-Arroyo Grande Councilman Keith Storton collected a $151,367 pension from SLO. Both Parkinson and Storton reached the rank of SLO police captain before retiring from the San Luis Obispo force.

Even some former SLO council members collect pensions from the city. Former councilman John Ashbaugh received a pension last year of $7,179, more than some sitting city council members in SLO County collect in salary and benefits. Former mayor Jan Marx received a pension of $5,424 in 2018.

Former mayor Dave Romero, who had a long career with the city prior to getting elected mayor, received a pension of $101,076.

As of last year, every other city in the county has at least one member of the six-figure pension club. The three top pensioners from cities other than SLO are John De Rohan, the former Morro Bay police chief; Michael Hubert, the former Arroyo Grande fire chief; and Dennis Cassidy, the former Paso Robles police chief. De Rohan, Hubert and Cassidy respectively received pensions of $146,158, $145,430 and $144,784 in 2018.

Frank Freitas

Unlike the seven cities, San Luis Obispo County is not a member of CalPERS. Instead, it has its own boutique pension plan, which is self-funded by the county and its employees.

Leading in pension earnings, former treasurer-tax collector Frank Freitas collected $206,003 in retirement pay in 2016, the latest year for which county pensions figures are available on Transparent California.

One of the driving factors in the ballooning of public sector pensions is the increasingly high salaries that government workers receive. Cal Coast Times will soon report on the pay that local public officials are collecting.

Pension stats by city (2018)

San Luis Obispo:

412 pensioners

47 six-figure pensioners

Top pensioner: Ken Hampian – $175,366

Total cost of pensions in 2018: $21.5 million*

$89,705 average pension**

Paso Robles

137 pensioners

12 six-figure pensioners

Top pensioner: Dennis Cassidy – $144,784

Total cost of pensions in 2018: $6.1 million*

$79,529 average pension**

Pismo Beach

82 pensioners

5 six-figure pensioners

Top pensioner: Jeffrey Norton – $134,364

Total cost of pensions in 2018: $3 million*

$76,927 average pension**

Morro Bay

123 pensioners

7 six-figure pensioners

Top pensioner: John De Rohan – $146,158

Total cost of pensions in 2018: $4.5 million*

$74,227 average pension**


90 pensioners

3 six-figure pensioners

Top pensioner: Kurt Stone – $126,064

Total cost of pensions in 2018: $3.5 million*

$72,039 average pension**

Grover Beach

43 pensioners

1 six-figure pensioners

Top pensioner: Jim Copsey – $110,549

Total cost of pensions in 2018: $1.5 million*

$69,573 average pension**

Arroyo Grande

103 pensioners

6 six-figure pensioners

Top pensioner: Michael Hubert – $145,430

Total cost of pensions in 2018: $4.2 million*

$69,010 average pension**

SLO County pension stats (2016)

2,681 pensioners

77 six-figure pensioners

Top pensioner: Frank Freitas – $206,003

Total cost of pensions in 2018: $79.6 million*

$88,091 average pension**

* Total cost is the combined amount of all pensions received by retirees in the single year, not the amount the agency spent on retirement benefits or paid to CalPERS.

** Average pensions are for full-career retirees.

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So if a person chooses a career in the public sector, and foregoes a more lucrative up front compensation package (with negotiable pay raises and annual or even semi annual bonuses) to serve the community with the promise that this path will allow for a comparable retirement, THAT IS SOMEHOW NOT FAIR TO THE COMMUNITY THEY SERVE? Take a look at what it costs to contract these profession services out and you might find that not only do the professionals earn more, but there are huge markups to allow for the firms to provide desirable compensation packages to the professionals they hire out, overhead costs to cover the staff it takes to run these consulting firms and PROFIT because these are private companies with owners who expect such things.

This is not a news piece, Josh. It is just a way to fire up readers who want more “heads to roll” because they failed to plan for their own futures!

Thank you, thank you, thank you for writing about this issue which I have personally complained about for over a decade, starting when Ken Hampian and Bill Statler, on city time, made the rounds of every service club and civic group in SLOtown to sell us on Measure Y to fund the “extras.” I couldn’t understand their argument at the time: the city was taking in more money than ever before, but expenses were higher than ever before, but there were no new capital improvement projects, no flurry of new hires, nothing tangible to account for these expenses that required a sales tax increase of 1/2 percent to fund the “extras.” A bit of digging revealed the pension debt ballooning every year. But Bill Statler always got kudos for his financial reports,( kind of like a handwriting grade of A on a composition graded F). Obviously the sales tax was sold to in fact provide a solid revenue stream to stabilize the city’s bond rating and help pay for pensions, so the city can borrow more and keep afloat even as it hires more people and gives raises to the top brass. Sickening. SLO is technically insolvent but it continues to hire new people like the proposed “downtown ambassadors” and push development anywhere and everywhere to get those development fees in ASAP.

Can anyone drain this swamp that has turned our special place into another San Jose?