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Session 1234, Minutes Page 7 December 17, 1979 Mayor Mooney asked Mr. Thomas Cushman, Chairman of the Board of Trustees of the Po- lice and Firemen's Retirement Fund, if he would comment on this bill and the follow- ing two, which all have to do with proposed changes in the pension plan for uni- formed City employees. Mr. Cushman related the recent history of the changes which are proposed for the pension plan for uniformed employees. He said the last vote of the pension board to approve these changes was three to two in favor with two members absent. He gave a brief description of the changes which would be brought about by these bills, if they are passed. Discussion followed, centering around the relative merits and possible disadvantages of the proposed changes, and the amount it would cost the City and its uniformed personnel. It has been estimated by the actuarial firm that the legal limit which the voters set on the property tax to fund pensions will be reached a year sooner under the proposed plan than it would be under the present plan. Councilman Adams spoke against the proposed changes, feeling that they will be too costly to the taxpayer, not at present, but in the future. He is afraid the City will not be able to fund the pension in the future if the proposed changes are adop- ted. Councilman Metcalfe also spoke against the proposed changes, feeling that they in- crease the tax liability and do not make benefits any more competitive than they are now. Councilman Lieberman spoke for the proposed changes, feeling it will benefit the -- uniformed employees now and in the future. He felt there was no risk in terms of funding the changes since the City is required by law to maintain a balanced budget. He felt some way could be found to fund the plan in the future, perhaps by asking the voters to increase their property tax, or a shift to some other form of funding, such as revenue sharing. Councilman Glickert reminded the Council that the authorization to go to $ .40 per $100 valuation, which was passed by the voters several years ago, was supposed to be for maintenance of the present plan and not to change it. Councilman Sabol spoke in favor of the proposed changes, feeling that some way could be found to fund the changes. He asked if there were not some way to invest pension funds to generate more income. Councilman Adams said the trustees, by law, are allowed to invest only in certain areas, and he would like to see the law changed so that investments could be made in vehicles which provide a greater return. At that point, it might be possible to fund the proposed changes. Councilman Sabol moved that Bill No. 7360 be adopted as an ordinance. Councilman Lieberman seconded the motion. Upon roll call, the following vote was recorded: AYES: Councilmen Lieberman, Kelley and Sabol. NAYS: Councilmen Adams, Metcalfe, Glickert and Mayor Mooney. The motion was defeated by a vote of four to three. BILLS FOR SECOND READING BILL NO. 7361 - AMENDING CHAPTER 25 MUNICIPAL CODE RELATING TO RETIREMENT AND PEN- SIONS, BY REPEALING SECTION 25-10 THEREOF, AND ENACTING IN LIEU THEREOF A NEW SEC- TION TO BE KNOWN AS "SECTION 25-10. CONTRIBUTIONS FROM MEMBERS GENERALLY," SO AS TO INCREASE THE ASSESSMENT FROM SEVEN TO NINE PERCENT.