by David Chapman
Staff Writer
A pension reform deal for police and fire members up for vote since the June 28 City Council meeting will again be delayed.
The measure, proposed by former Mayor John Peyton, will be postponed for another two weeks, Council President Stephen Joost said Monday.
Proponents believe the deal will save the City more than $790 million over the next 35 years.
Critics of the measure have called for more savings and a slower process to allow more public input.
However, Joost said the postponement is to allow Council members, especially the seven new members, to learn more about the proposal.
“We’re going to make sure we have all the questions answered,” he said.
The decision came after a three-hour pension workshop Monday for Council members. It served as an introduction to the complex issue for new members and a refresher course for those familiar with it.
Fourteen Council members attended, including all of the new members except for Kimberly Daniels.
“This really is supposed to be ‘101,’” said City Chief Financial Officer Mickey Miller, a workshop speaker.
Miller provided documents and a presentation about differences between defined contribution and defined benefit retirement plans along with the actuarial valuation process that determines defined benefit plans.
He followed presentations by John Keane, Police and Fire Pension Fund executive director and administrator, and Dick Cohee, the fund’s deputy director. Their presentations included the plan’s history, benefits and organizational structure.
“Without a little road map it can be difficult,” Keane told Council members.
The workshop served as an informational course only. When discussions began veering into potential debate or into topics that might affect labor negotiations, City General Counsel Cindy Laquidara stepped in to stop the discussion.
Almost all of the Council members asked questions. Joost said he was impressed with the overall turnout and level of participation.
“I thought it was great,” said Joost. “It’s a complex issue that took me a while to understand.”
Heading into the Council meeting tonight, another hot topic could also be postponed.
A decision is scheduled on an actuarial study waiver. The study would determine the true pension costs. Such a study is required annually by City Charter but only once every three years by the state.
If the study is completed this year, it could add an almost $6 million hole to the 2011-12 budget due to anticipated rate variances.
Those who want the study done this year fear what the gap could be if the study is delayed a year, while those who want it delayed think a better market later would benefit the City’s contribution rate.
Monday afternoon, Joost said he was “waiting for guidance from the administration” on the issue and would determine later if a vote would be postponed.
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