Atlanta's City Council passed pension reform by a margin of 15 to 0: a unanimous vote for a sweeping decision . Current workers will contribute five percent more in salary towards pensions, the benefit multiplier is reduced to one percent, and new employees will be enrolled in a defined contribution plan.
These measures will save the city $25 million annually and help to fill
the $1.5 billion pension liability that has surfaced over the past
several years due to benefits enhancements. Mayor Kasim Reed notes this
will "stop the bleeding. Pensions account for 20
percent of the city's budget. This allows the city to avoid spending
cuts, layoffs, and tax hikes.
The Mayor and City Council indeed can serve as a model for the rest of the nation those involved had the right principles in mind - look at the actuarial assumptions and ask if they are sustainable. The city will cancel a proposed paycut to employee and reinstate jobs for 130 of the 200 proposed layoffs
The Mayor and City Council indeed can serve as a model for the rest of the nation those involved had the right principles in mind - look at the actuarial assumptions and ask if they are sustainable. The city will cancel a proposed paycut to employee and reinstate jobs for 130 of the 200 proposed layoffs
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