District 8 Atlanta City Coucilwoman Yolanda Adrean says recent changes to the pension plan for city employees will save substantial amounts of money.
City officials estimate the city will save $22 million in the first year after the reforms, and will save $500 million over 30 years. The council on June 29 voted unanimously in support of the plan.
“The pension reform we have agreed upon provides significant savings that can be used for services to citizens and investment in infrastructure,” Adrean, who chairs the council’s finance committee and serves a district that includes Buckhead, said in a press release on the city’s website. “ It also includes important safe guards to limit the city’s exposure to market risk. A cap has been adopted that will force changes to the plan should the pension costs exceed agreed upon parameters. This is a significant part of the reform which protects the city and its citizens against volatile market fluctuations.”
The biggest changes impact new employees in the city’s police and fire departnments, who will see their pension switched from a traditional pension system to a “hybrid” of a pension plan and a 401 K.
“The retirement age for new employees will increase by two years,” the city press release says. “The retirement age for new sworn police and fire personnel increases from age 55 to 57. The retirement age for all other new employees will increase from age 60 to 62.”