SEPTA approves modifying management's pension plan

The SEPTA board on Thursday approved, without discussion, changes to the pension plan for SEPTA's 1,800 nonunion workers.

The changes will require management and administrative employees, who now pay 1 percent of theirannual salary toward their pension fund, to contribute 2.5 percent starting in December and 3.5 percent starting in December 2016.

Also, the formula for determining the pension pay-out will be changed, to increase the value of a future pension for employees who remain with SEPTA for many years.

SEPTA expects to save $183 million over 30 years because of the changes, the transit agency's chief financial officer, Richard Burnfield, said.

Pensions were a major sticking point in labor negotiations last year with the union that represents bus drivers, subway and trolley operators, and mechanics.

Leaders of Transport Workers Union Local 234 said managers' pensions were much more lucrative than those for union workers.

Willie Brown, president of the local, attended Thursday's board meeting and said afterward that SEPTA should work with union leaders and management employees to create a pension plan with similar benefits and contributions.

TWU leaders have been especially critical of a cap on union members' pension benefits, based on wages, while their contributions are not capped. Management pension benefits are not similarly capped, Brown said.

Also at Thursday's board meeting, residents who live near the Frankford Transportation Center objected to SEPTA's plans to build an employee break facility where residents hope a supermarket could be located.

Kimberly Washington, executive director of the Frankford Community Development Corp., said residents would link arms and physically prevent SEPTA from breaking ground at the site adjacent to the transportation center next week.

"You have an obligation to consider our needs," said Washington, to applause from other Frankford residents. "We're going to fight you, and we're going to stop you."

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