Friday, May 22, 2015

Council Mulling Pension Options

The conflict between the mayor and City Council over how to handle the municipal pension program continues.

Council Mulling Pension Options

The conflict between the mayor and City Council over how to handle the municipal pension program continues.

Council is planning to hold an informational hearing Monday on a pension resolution introduced over a year ago by Councilman Bill Green. Green wants the labor committee to hold a series of hearings on the pension plan’s structure and prepare recommendations on how to improve the plan.

Council and the mayor have butted heads recently over the pension, which is severely underfunded and considered a major financial liability for the city.

The mayor wants the city to enter a state pension program that would require it to create a lower-cost retirement plan for new hires. That state authorization would be a powerful bargaining tool for the city in the ongoing to contract negotiations. But to get it, City Council must pass a resolution by the end of the month pledging to create a lower-cost pension plan for new hires.

So far, Council has held back, with many members saying that negotiating pension terms should be done within contract talks. This new move looks like Council trying to take control over the issue in their own way.
 

About this blog
William Bender, a Drexel graduate who landed at the Daily News in 2007, has covered everything from South Philly mobsters to doomsday hucksters. He occasionally writes about local food trucks and always eats everything on his plate, whether it be a bloody rib eye or a corrupt politician. E-mail tips to benderw@phillynews.com
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David Gambacorta, has been a reporter with the Daily News since 2005, covering crime, police corruption and all of the other bizarre things that happen in Philadelphia. Now he’s covering the 2015 mayor’s race, because he enjoys a good circus just as much as the next guy. He’s always looking to get a cup of coffee. Send news tips and other musings on life to gambacd@phillynews.com
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