A city already facing billions in unfunded retiree health benefits and growing contributions to its pension system could face even greater costs for municipal retirees in the future.
City Council President Stephanie Rawlings-Blake introduced a resolution at Monday?s council meeting calling for hearings to study giving all city employees the same costlier pension benefits enjoyed by city police and firefighters. Blake said the difference in retirement benefits creates an unfair, “two-tiered” system.
“We need to figure out a way to offer the same pension benefits to the hard-working municipal employees that count on these benefits to retire,” Rawlings-Blake said in a statement Monday.
Her spokesman Shaun Adamec said the council would examine offering all city employees the option to retire after fewer years of service, a higher percentage of pay upon retirement and the ability to contribute their own money to the pension funds, all benefits received by public safety workers.
How to pay for the proposed changes has not yet been decided.
“We?re in the process of investigating the changes,” he said.
But Anthony McCarthy, spokesman for Mayor Sheila Dixon, characterized the idea as irresponsible.
“The city will not make any reckless promises to get votes,” he said. “That would be unfair to the men and women in uniform and to city employees. The citizens expect us to be responsible with their tax dollars, and that starts with not making empty promises.”
The proposal comes as the city struggles to fund existing pension obligations.
The city recently announced a $2.9 billion unfunded liability for future retiree health care costs. To address the gap, city officials formed a trust fund similar to the existing pension system, but were able to contribute only $15 million.
Two pensions found underfunded
Baltimore City has two primary pension funds, the Fire and Police Employee?s Retirement System and the Employees? Retirement System, which funds pensions for all city employees. Both funds are slightly underfunded, according to their most recent annual reports. One additional pension fund, the Elected Officials Pension system, is fully funded. ? Stephen Janis
