posted August 26, 2008
The City Council on Tuesday night approved on first reading a compromise adjustment of the city fire and police pension fund.
It came after some last-minute changes were made while a council agenda session was going on earlier in the afternoon.
The room was crowded with fire and police officers at the agenda session as Councilwoman Carol Berz outlined the final version.
She asked the pension board president and the executive director if they agreed with the final version, and they said they did.
It sets up an eight-member pension fund board, including three each from fire and police, the mayor or his designee and an outside financial expert named by the council.
The present board will continue in office until their terms expire.
Fire and police on the first Tuesday of September each year will choose a new representative for a three-year term.
There will be some modifications to the current Deferred Retirement Option Provision (DROP), including requiring current beneficiaries to contribute an additional percent of their pay to stay in.
A new DROP plan designed to be revenue neutral will be worked out for fire and police hired after June 30 of next year.
There will be an actuarial study every five years to find out "whether or not the DROP plan is moving towards cost neutrality and when cost neutrality is expected."
The City Council may take action if it is deemed that the DROP is not moving toward cost neutrality "in a reasonable amount of time."
The pension board is also to submit quarterly performance evaluations to the City Council.
The measure will now go before the voters on the Nov. 4 ballot.
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