Monday, July 28, 2014
Inquirer Daily News

Administration Wants Changes to Pension Program for New Hires

The Nutter administration says that tomorrow they will transmit legislation to City Council that would change the city pension plan for any new city workers.

Administration Wants Changes to Pension Program for New Hires

The Nutter administration says that tomorrow they will transmit legislation to City Council that would change the city pension plan for any new city workers.

Managing Director Camille Barnett said the proposed plan would combine a traditional pension -- at a lower benefit than current employees receive -- with a 401K plan that workers pay into. New hires who want more than the pension offering could sign up for the 401K plan and the city would provide matching funds.

Because tomorrow is the final council session of the season, the bill could not recieve final passage until fall. But if it were to pass, any workers hired after July 1 would be retroactively subject to the terms, Barnett said.

Finance Director Rob Dubow said the plan would save the city $500 million over 30 years. "This is a financial move to ensure the health of our pension fund," he said.

The city is sending the legislation to Council just two weeks before labor contracts for the four municipal unions expire. According to the city, pension terms are set both through city ordinances and collective bargaining agreements. The police and fire contracts will be settled through arbitration, while the two non-uniform worker contracts must be negotiated.

Barnett said the legislation shouldn't be viewed as a message to the unions as contracts are negotiated. "The motivation is to bring the changes to the [pension program,]" she said.

About this blog
Chris Brennan, a native Philadelphian and graduate of Temple University, joined the Daily News in 1999. He has written about SEPTA, the Philadelphia School District, the legalization of casino gambling, state government, the mayor, the governor, City Council and political campaigns. E-mail tips to brennac@phillynews.com
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Jenny DeHuff is a 2005 graduate of the University of Rhode Island, where she cut her teeth in journalism. A South Philly transplant from New England, she joined the Daily News City Hall Bureau in 2013. For the past several years, she has worked as an investigative reporter exposing corruption in suburban politics, covering sometimes ghastly criminal court cases and following the people’s money and how its spent. In addition to being a dogged news hound, she enjoys reading and writing about travel, animals, Irish whiskey and aviation. E-mail tips to dehuffj@phillynews.com
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Sean Collins Walsh is from Bucks County and went to Northwestern University. He joined the Daily News copy desk in 2012 and now covers the Nutter administration. Before that, he interned at papers including The New York Times, The Dallas Morning News and The Seattle Times. E-mail tips to walshSE@phillynews.com
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