Tuesday, December 21, 2010
Charleston Officials Focus On Retiree Pensions
WEST VIRGINIA....
At Monday's regular city council meeting, Charleston Mayor Danny Jones revealed some details of a plan aimed at fixing the skyrocketing costs of police and firefighter pensions. Jones wants active duty and currently retired police officers and firefighters to be enrolled in a pay-as-you-go system, while new hires would be enrolled in a new plan approved by the state Legislature that is fully funded. At first, city leaders thought they would be able to simply switch to the new plan, but, earlier this year, they discovered that the Legislature required the city to fully fund current actives and retirees over 40 years, which would cost an additional $8.4 million this year alone. The city is paying about $7 million per year into the plans, but, under the current system, that number could increase to as much as $27 million per year by 2030. Jones says sticking with the current system is simply not an option. He says it is state officials, not city officials, who are to blame for the current mess, and he plans to take the proposal to state lawmakers in the upcoming session next month to try to get it approved. Jones said he doesn't want to see any taxes increased on those who work in the city in order to fund the plans. City Manager David Molgaard and Jones say more details will be revealed next week.
At Monday's regular city council meeting, Charleston Mayor Danny Jones revealed some details of a plan aimed at fixing the skyrocketing costs of police and firefighter pensions. Jones wants active duty and currently retired police officers and firefighters to be enrolled in a pay-as-you-go system, while new hires would be enrolled in a new plan approved by the state Legislature that is fully funded. At first, city leaders thought they would be able to simply switch to the new plan, but, earlier this year, they discovered that the Legislature required the city to fully fund current actives and retirees over 40 years, which would cost an additional $8.4 million this year alone. The city is paying about $7 million per year into the plans, but, under the current system, that number could increase to as much as $27 million per year by 2030. Jones says sticking with the current system is simply not an option. He says it is state officials, not city officials, who are to blame for the current mess, and he plans to take the proposal to state lawmakers in the upcoming session next month to try to get it approved. Jones said he doesn't want to see any taxes increased on those who work in the city in order to fund the plans. City Manager David Molgaard and Jones say more details will be revealed next week.
# posted by Homer Owens @ 9:55 PM 
