A better way forward for city workers and taxpayers – avoiding bankruptcy.
Spend first dollars earned by city on funding pension and retirement health benefits. Cut things that are not core services like $50 million on Lens, subsidies to the Rays and SRI and other big corporations and wasteful feel-good projections for politicians.
Re-evaluate top-heavy administrations to redirect funds to the actual workers.
Take $60 million from the $80 million surplus reserves and start funding the $325 million shortfall in your pension plans which is really closer to $625 million.
Provide $3 million in raises annually to city workers now.
Provide up to $10 million in raises annually if workers agree to long term pension reform that provides them a more secure retirement fund.
Long Term – Incentives to transition over 5-10 years to defined contribution from defined benefit plans.
A. Provide incentives to employees to participate in reform of the retirement system. Here are some incentives to ensure a partnership between city workers and the management of the city as well as the taxpayers.
- Personally owned pension plan – Not owned by a city that can’t pay your benefits and is mismanaging your money.
- Pay raise – you deserve to be paid more if you are willing to own your own retirement plan and run it.
- Earlier vestment – you deserve to be eligible to receive benefits earlier if you
- Portable benefits – take them to any job you want, don’t be locked into a job you may not want.
- More security for younger workers – Change last in, first out so younger workers who adopt a better plan have a more secure job.
- Free financial planning to help workers learn how to protect their money from stock market downturns.
B. In exchange for Adoption of INCENTIVES – then workers can choose the following
- Use retirement contribution to buy an insurance based annuity that would pay out at retirement
- Adopt a 401K style plan
- Phase out defined benefit plans
- Encourage use of health savings accounts and high deductible health plans. They would put cash in workers pocket for every day medical expenses and pay 100% of all health costs above high dollar amounts that happen rarely in life. These plans are a far better value for everybody. Dr. McKalip would recruit medical colleagues to offer deep cash discounts to city workers with these plans and make sure city workers are trained how to get the most bang for the buck out of the plan and the most time with their doctor.