The Atlanta City Council laid out the remaining schedule for pension deliberations with members saying they will take the necessary time to fully vet all reform proposals and options.
In a meeting called by Council President Ceasar Mitchell, the City Council on Wednesday, May 25, discussed the administration’s proposed reform options as well as the process for moving forward in its deliberation of proposed reforms to the city’s police, fire and general employees’ pension plans.
Until recently the administration had proposed two reform options including: (1) shifting all employees in the Defined Benefit plans to the City’s current 6 % Defined Contribution plan provided to those above Grade 18; and (2) shifting all employees in the Defined Benefit plans to a new 8% Defined Contribution plan with Social Security.
In Spring of 2010, the administration formed a Pension Reform Taskforce to devise pension reform options. It was announced then that the Taskforce work would take 45 to 60 days to complete its work. In April, 2011, nearly a year later, the administration presented pension reform legislation for the council’s consideration. On May 25 the administration provided to the media a slide presentation of a new pension proposal and requested a City Council vote on their proposal by June 30. “We now have a new proposal option on the table that was presented to the media,” said Mitchell.
“Obviously we can’t vote on slide show presentations. We look forward to receiving and reviewing the new proposal.”
“Passing reform by June 30 presumes an acceptance by council that this new proposal is perfect and above review,” Mitchell said.
Mitchell said that demanding that the council pass this new proposal by such date is tantamount to asking the council to abdicate its deliberative function and obligation to citizens under the city charter.
“This ‘my proposal or the highway’ stance is not only somewhat disrespectful, but also shows little regard for the role of council as the governing body of the city in our bicameral form of government,” he said. “The council will move diligently and act in
due course. This council is not going to play the ranting and raving game, but instead do the people’s work and make the tough decisions. But by no means are we going to pass important reform such as this just to be able to tout that we did pension reform in Atlanta.
”We plan to adopt reform that is fiscally prudent, legally defensible and functionally sustainable not just for the next four years, but for decades to come,” Mitchell added.
When the original reform options were introduced in April, the City Council commenced a rigorous schedule of pension reform work sessions.
Recently, the City Council received a presentation from a representative from the Georgia Area Office of the Social Security Administration on Proposed Option 2.
Councilmembers have also met with and conducted work sessions with representatives from the American Federation of State, County and Municipal Employees (AFSCME); the Southern States Police Benevolent Association Inc. (PBA) on possible changes to the General Employees Pension Plan as well as with representatives from the Atlanta Professional Fire Fighters’ Association and International Brotherhood of Police Officers Local 623 regarding possible changes to the city firefighter’s and police officer’s pension plans.
By vetting all options, councilmembers want to achieve several goals: approve a legally sound pension plan; reduce the city’s unfunded liability in accordance with fiscally prudent, yet realistic, best practices; establish annual cost reductions, expense predictability and general fiscal; stability within the pension plans; and institute achievable and sustainable reform outcomes (i.e., annual cost reduction, competitive employee compensation, legality, financial solvency, and reduction in unfunded liability, etc.) for the employee retirement program.
A vote on pension reform could come as early as July.
The council remaining pension deliberation schedule is from June 2 through July 18. On Aug. 15 and 22, the full City Council will consider pension legislation where ready and conduct public hearings; on Aug. 31, the City Council will consider remaining pension reform legislation pending before the Finance Committee and on Sept. 6, the council will provide a final vote on all pension legislation by the full council as necessary.
For more information visit https://citycouncil.atlantaga.gov/pensionresources.htm.