The Baltimore County Council indicated for the first time Tuesday that it may not support the sweeping changes to employees? pension and health care plans urged by the county executive and his administration.
Council members questioned the inclusion of former and existing employees in proposed changes, namely through extending the minimum retirement age from 60 to 65.
The move would force about 47 percent of current employees to work longer than expected to retire with full benefits, and about 430 former employees to wait five more years before collecting pension payments.
In an unadvertised meeting hours before a public hearing on the proposed 2008 budget, council members questioned county budget director Fred Homan on grandfathering existing employees into the new pension system and the threat of lawsuits from former employees.
“I still have reservations,” said Councilman John Olszewski Sr., D-District 7. “The people that have left, they have no choice, no opportunity.”
Administrators said they have proposed the changes in response to escalating health care costs, expected cuts from state funding and a new federal law requiring local governments to prefund post-employment benefits other than pensions. Homan said packages offered to labor unions could be negated if the council modifies the proposals.
Under the proposal, employees who work at least 30 years are still able to retire with full benefits at any age. Administrators are also proposing an expansion to a “deferred retirement” program that provides incentives to employees who work an additional five years beyond the minimum.
“No one is being forced here to do anything,” Homan said. “They can stay and enhance their benefit. If they don?t want to stay, they can choose early retirement.”
State employees protested proposed pension changes in the 1970s until they were offered what they considered comparable benefits, said Byron Warnken, a University of Baltimore law professor, who speculated on the situation in general terms.
“It would seem to me they either have to let them stay in the old system, or if they are making it retroactive, they would have to make some modifications to have the functional equivalent,” Warnken said.
All employees will face increased health care costs over the next 10 years. The county?s 93-member nurses union ratified a contract this week. The 1,700-member Federation of Public Employees is slated to vote on ratification Thursday.
