Former and existing Baltimore County employees will not have to work longer to receive full retirement benefits under a last-minute compromise announced by lawmakers Thursday.
Under the agreement, current and nearly 440 former employees will retain the right to retire at age 60 with full benefits instead of 65 as proposed by County Executive Jim Smith. Calling Smith?s proposal unfair for employees already vested in the system, council members said the agreement gives employees expecting to retire soon a choice.
They cautioned more changes might occur before a June 18 vote.
“We?ve got a whole month to work on it,” said Councilman Joe Bartenfelder, D-District 6. “But the proposal has come a long way. By and large, more people should be satisfied with it.”
Under the proposal, the pensions of employees who opt to work after age 60 ? but before 65 ? will be calculated at a lower rate during the extension. Pensions ofemployees who opt to work until they are 65 retain the normal monthly calculation, Smith spokesman Don Mohler said.
The new proposal also retains a 5 percent penalty for employees who choose early retirement, a 2.5 percent increase from Smith?s proposal.
“The big savings for us has always been post-retirement health care,” Mohler said. “When people see how much more they will get every month for the rest of their lives, we hope they will choose to work until 65.”
County labor unions, most of which approved contracts containing Smith?s proposal, will be offered the “better deal,” Mohler said. The compromise thrilled employees who said they planned their finances on their expected pension date.
“The council deserves a lot of credit,” said Mike Gimbel, the county?s drug czar for 22 years. “They did what the administration didn?t. They were open to the people who would be affected by this legislation.”
The council adopted changes for future employees ? including requiring them to work for 35 years or until age 67 ? Thursday. Budget officials expect those changes to save the county $15 million over time.
