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Monday, October 26, 2009

A City Council committee just ended an informational hearing on the city's pension structure that was neither controversial nor terribly informative in the way of new facts - but it did seem to ratchet up tensions between Council and the Nutter administration, which was possibly the point in the first place.

Twice in the last year and a half, Councilman Bill Green, who chairs Council's Labor and Civil Service Committee, had scheduled a hearing to examine the state of Philadelphia's pension system and consider recommended fixes. Twice he postponed the hearing at the request of the administration.

A final straw seemed to come last week when Nutter spokesman Doug Oliver suggested that Council was "abdicating any responsibility" for finding ways to lower pension costs by refusing to pass a resolution creating a cheaper pension plan for newly-hired city workers. Council support for doing so was nil, with most members believing that was a collective bargaining matter to be settled at the negotiating table.

Within a few days, today's hearing was scheduled.

"When the administration last week said Council was abdicating its responsibility," Green said after today's hearing, "I decided there was no longer a need to accommodate the administration and not hold these hearings."

Four members of the city's board of pensions testified. All were city employees who represented the four municipal unions.

But nobody from the administration was able to make it, except for government affairs liaison Tumar Alexander, who offered prepared testimony on behalf of City Solicitor Shelley Smith and Finance Director Rob Dubow. In their testimony, both officials said they could not attend because of scheduling conflicts due to the "limited notice" of the hearing.

Smith's prepared testimony also contained an  unusual admission: The administration was wrong in its analysis last week of the consequences of Council not passing the pension resolution.

For instance, the administration had originally stated if the resolution were not passed, the State Public Employee Retirement Commission (PERC) could go to court to file a "mandamus" action to require the city to adopt a new plan. Not true, according to Smith's testimony. After further review, she wrote, "We have concluded that PERC can seek a write of mandamus only after Council has passed a resolution - if Council should do so - and failed to enact a lower cost plan by June 30, 2010."

In fact, Smith wrote: "After much review and additional discussion, we have concluded that the original analysis is an unduly aggressive interprestation of the applicable law..."

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Posted by Marcia Gelbart @ 3:56 PM  Permalink | 6 comments
Comments   
Posted 06:09 AM, 10/27/2009
bobguzzardi
What responsibility, if any, does City Council have for payment of pensions to city workers? The pension fund is underfunded and the recent remedy of underfunding the underfunded pension fund postpones the problem for two years. Then what happens? Pensions have to be paid and there is no money in the fund, how does the City pay them.
Posted 11:16 AM, 10/27/2009
Ben Dover
are newly elected politicians in the city going to have the new lower pension plan also? and why not include a new lower salary for newly elected politicians and stop the automatic pay increases? also no more taxpayer owned vehicles for personal use.
Posted 01:42 PM, 10/27/2009
CleanupPhilly
You mean a writ of mandamus. If I was the writer here, I'd just read the legislation of the sales tax hike/pension reform bill that passed. I do seem to recall that the legislation gave the right to have the state require the lower cost plan with or without legislative approval by the body in charge. There was more than one option. Smith's legal interpretations are often found to be in need of further clarification, as with the library closures.
Posted 01:45 PM, 10/27/2009
CleanupPhilly
The bottom line is that if Council does nothing to further fund the pension plan, the state will take it over. That means cost cuts and increased payment by city employees and the city into the plan are a must now. Without that cash infusion from everyone, there is little chance the unions will retain arbitration or collective bargaining.
Posted 06:45 PM, 10/27/2009
Big cushy
Its the politicians who year in and year out refuse to put the city's share into the pension fund. It is the City's fault this fund is so underfunded. Not the city workers. Every pet project is paid for with money supposed to go to this fund. It is criminal to now blame the workers.
Posted 10:10 AM, 10/28/2009
bill at
Anyone holding their breath expecting elected Philadelphia Democrats to live up to their responsibility and address this critical problem is kidding themselves.
6 comments
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The Philadelphia Inquirer's Jeff Shields, Marcia Gelbart, and Patrick Kerkstra take you inside Philadelphia's City Hall.