EA6 – Tale of Three Cities

Session 606 at the Enrolled Actuaries meeting included an informative presentation on the experiences of three cities with defined benefit plans for their public employees who found themselves similarly situated:

  1. Not in Social Security so pensions vital;
  2. Escalating pension contributions; and
  3. Looking at Hybrid plans.

Using the session outline as a template here is how it played out for:

Atlanta General Employees (traditional hybrid)

Chattanooga Fire and Police (stealth hybrid)

Memphis All Employees (cutting edge?)

The takeaway is that these changes take time and you need a group of people perceived to be independent experts to come up with the plan.

New Jersey also set out on this path, even with a roadmap from their own blue-ribbon panelDead end?

 

 

 

7 responses to this post.

  1. Posted by Anonymous on April 15, 2017 at 3:29 pm

    What’s the problem, all seems like a ‘roadmap to suckess’?

    Reply

  2. Posted by anon on April 17, 2017 at 8:42 am

    This is as good as it gets? The Phoenix plan seems more “revolutionary” than these and it isn’t all that new, just interesting that it tries to vary the risk with the income level.

    Reply

  3. Posted by Seesaw Junior on April 17, 2017 at 12:03 pm

    DROP??? If ANY muni is stiil allowing the DROP scam they deserve to go BK. If you want to hang on to “experienced” employees you just RAISE the retirement age. Simple solution to a simple problem. You do NOT pay them DOUBLE time, and also run up social service tabs by keeping that job out of the employment stream while people sit at home unemployed looking for work sucking up social services.

    Reply

  4. Posted by Seesaw Junior on April 17, 2017 at 12:07 pm

    They should also raise the vesting period from 5 years to 12. No one should be able to retire with a DB pension after 5 years. And they need to raise the minimum retirement age to at least 62, if not 65. 60 for safety jobs

    Reply

    • Posted by Anonymous on April 17, 2017 at 12:14 pm

      Also excellent.

      There are plenty of Police/Fire positions that don’t require running after criminals or racing into buildings to fight fires.

      Give THOSE positions to workers as they get older …… instead of bankrupting the City & the taxpayers with ludicrously generous pensions collectable (w/o actuarial reduction) in their 50’s.

      Reply

  5. Posted by MJ on April 17, 2017 at 6:13 pm

    Seems to me they just shuffled the deck chairs around on the Titanic but I’m no expert

    Reply

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