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Change allows pension plans to retain benefits for workers
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Related Topics: Baltimore County
Baltimore County (Map, News) - 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 of employees 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.
jmalarkey@baltimoreexaminer.com
Comments from Examiner Readers
1:59 PM MST on Thu., Jul. 31, 2008 re: "City faces $2.9 billion gap in retiree health benefits"
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8:01 AM MST on Mon., Feb. 25, 2008
re: "Howard considering trust fund for retiree benefits obligation"
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7:11 AM MST on Sat., May. 26, 2007
re: "More than $10M set aside for retiree benefits"
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5:58 AM MST on Fri., Apr. 20, 2007
re: "More than $10M set aside for retiree benefits"
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Examiner Reader said:
Oh sure, raise my taxes. It doesn't matter that I have no retirement plan. That I have worked since I was 16 years old, not including babysitting when I was younger that 16. All the hardworking state employees, I say hard working because I see them napping in yellow trucks, deserve a big fat retirement check. And the city employees, with all the hard work they do by shopping using city credit cards is tiring. They deserve it also! Take my money, what little I have left.
0 agree | 1 disagree
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Not surprised said:
Retirement should be in 401K plans. With the county and the employee contributing. Then there would be no unfunded liability!
32 agree | 23 disagree
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Examiner Reader said:
Baltimore County's website makes no mention of a 5 % penalty , nor does it tell you how they aren't finish yet... if this information is true then employees who have been loyal and hard working are to be pusished for their committment. If the Administration and Council and Govenment on all levels really are so worried about the system , then perhaps they should show how much they care about all of their constituens out here in the communities it by reaching into thier own retirement systems/pockets and pay into the Social Security System. and Retirement system and cut their pays.. Excuse me, but it would seem that we have elected people who have no problem taking pensions from workers who are the backbone of the entire system....yet..pay nothing themselves... I think that perhaps it may be time that government "for the people" replaces "by the people" with "real people."
159 agree | 150 disagree
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Examiner Reader said:
Howard County's approach to funding their retirement liability is not being done by ravaging the current employee's retirement as Baltimore County Executive Jim Smith is trying to do. They also have a Spending Committee evaluating the financial impact. Baltimore County did not have the pension system evaluated prior to proposing the radical changes to the current retirement system.
172 agree | 151 disagree
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