All Articles Tagged "retirement plans"
(AJC) — The Atlanta City Council late Wednesday approved a bill to remake the city’s pension program for municipal employees, possibly saving Atlanta from years of escalating costs and tightened spending. By a vote of 15-0, the council approved sweeping pension changes aimed at paying off the city’s $1.5 billion unfunded pension liability and saving about $25 million annually. The plan requires all current police officers, fire fighters and general employees to take a 5 percent pay cut in the form of a higher pension contribution. It also reduces the so-called “multiplier,” used to calculate pension benefits of future workers to 1 percent, and reduces the maximum cost-of-living adjustment of pension benefits of future employees to 1 percent.
(AJC) — A proposal to reform the city of Atlanta’s underfunded pension plans could come within 10 days. Mayor Kasim Reed on Wednesday told members of the city council that after weighing seven options and continued consultation with them, he is close to announcing his plan to shift the funding formula. “I don’t think we can wait any longer,” Reed said. “You can’t get around the math related to this problem.” Since coming into office, Reed has argued that the city’s pension has handcuffed Atlanta’s ability to remain financially viable since more than 20 percent of the annual budget is consumed by it. While other big cities contribute 20.8 percent of each employee’s salary toward pension benefits, on average, Atlanta contributes 39.1 percent.