Tuesday, January 04, 2011
Charleston City Leaders Consider Pension Plan
WEST VIRGINIA....
City leaders in Charleston say the pension plan for police officers and firefighters is no good, but they have a plan that would allow them to pay them without putting the city in debt. A new pension system passed by the Legislature in 2009 could help by closing the existing pension plan to new hires, but Charleston doesn't qualify. The new bill calls for the city to be able to manage itself out of debt within 40 years, but, with the pension fund debt being more than $2 million, that simply can't be done. Mayor Danny Jones says, under the existing plan, the city would be fine for the next 15 to 20 years, but the long-term effects could be devastating. Jones plans to ask the Legislature for a self-funding formula that would allow the city into the new pension system, as well as calling on help from police and firefighter unions.
City leaders in Charleston say the pension plan for police officers and firefighters is no good, but they have a plan that would allow them to pay them without putting the city in debt. A new pension system passed by the Legislature in 2009 could help by closing the existing pension plan to new hires, but Charleston doesn't qualify. The new bill calls for the city to be able to manage itself out of debt within 40 years, but, with the pension fund debt being more than $2 million, that simply can't be done. Mayor Danny Jones says, under the existing plan, the city would be fine for the next 15 to 20 years, but the long-term effects could be devastating. Jones plans to ask the Legislature for a self-funding formula that would allow the city into the new pension system, as well as calling on help from police and firefighter unions.
# posted by Homer Owens @ 9:41 PM 
