June 25, 1979 - Laserfiche WebLink

Home Browse Search

Session 1223, N/nutes June 25, 1979 Page 13 of base pay; for every year thereafter, 3~/ can be earned up to 55% of base pay at age 55. Councilman Metcalfe spoke in favor of setting the tax rate for the pension fund at 29¢ for the following reasons. She said the pension plan should not be changed in such a way that retirement is not tied to age at all--there should be some combina- tion of service and age if the purpose of early retirement is to allow people to leave the service at a point where the strees and strain is too much for this type of work. She said the issue is extremely complex and needs a great deal of study, and the Council has really not had enough time for this. Also, any change which is made is virtually irreversible, unlike other budget items which can be changed from year to year. She feels the issue should be studied for several months, and also feels that the Council should follow the provisions for public disclosure and input that are in H.B. 130. Councilman Metcalfe seconded Councilman Adam's motion. Councilman Sabol spoke in favor of the 32¢ rate. He says he does not feel that reaching the 40¢ rate one year earlier than predicted makes a great deal of difference, and feels Council should rely on the report from the actuary. Councilman Adams said he agrees that early retirement should be a part of the pen- sion plan, but that the entire plan is being approached in piecemeal fashion, and needed a great deal more time devoted to it. He also said that some of the provi- sions in H.B. 130 will not be followed if Council decides on the 32¢ rate now. Councilman Lieberman spoke in favor of using the 32¢ rate. He said he felt that when the citizens of University City voted to authorize a tax rate of up to 40¢ for the pension plan, they did not necessarily see it only as maintaining the plan as it is presently constituted, but that it could be used to improve the plan, also. Mr. Lieberman said that he also thought that Amendment #4 was supported so overwhelming- ly because it did not cost any money. Mr. Lieberman said that H.B. 130 says that when a substantial change in benefits is being made, all that has to be done is to make the statement of cost available to the public for at least 45 days before the legislative body can take final action to adopt the substantial proposed change in benefits. He said Bill Nos. 7342 through 7349 and Bill Nos. 7362 through 7368, which are tax bills, do not propose any substantial change in benefits, but Bill Nos. 7360 through 7362, which are pension bills, do, so Council could adopt the tax bills now, and adopt the pension bills 45 days later, in order to comply with H.B. 130. Councilman Metcalfe disagreed with Councilman Lieberman and said she felt the public was very concerned about runaway pension costs, and that they wanted full disclosure and lots of debate, and a full awareness of the ramifications of any change in the pension plan. Councilman Glickert said that while there are persuasive arguments on both sides, she feels since Council has only had the proposal since the previous Friday, more time is needed to study it, and that Council shuuld set the rate at 29¢ until such time as it feels a change should be made. Mayor Mooney concurred, emphasizing es- pecially the brief time Council has had the proposal, and the fact that he feels the citizens do not want the Council to make any changes hastily. Upon roll call, the following vote was recorded: AYES: Councilmen Adams, Matcalfe, Glickert and Mayor Mooney. NAYS: Councilmen Lieberman, Kelley and Sabol. The mo- tion carried by a vote of four to three. The rate was set at 29¢.