Finance Chairman John J. Igliozzi, councilman for ward 7, announced that the City Council will be voting tomorrow night on the latest piece of its pension reform package. The Joint Committee on Finance and Ordinances recently approved an ordinance addressing retirement eligibility, and closing a loophole that will result in annual savings to the City and taxpayers.

The ordinance, approved by the Committee on January 8^th, amends Section 17-189 of the Code of Ordinances by adding section (1) (c). The new provision limits pension benefits to those employees who have been contributing members of the retirement system for a minimum of ten (10) years. Currently, the ordinance allows those reaching retirement age—age 55—to receive pension benefits regardless of the number of years of employment with the City.

“This amendment closes a loophole in the ordinance,” explained Igliozzi. “Right now, someone could work for the City for a year and a day, turn 55, and be eligible for pension benefits for life. Clearly, this is unfair to the system, and to the taxpayers who are financing an unsustainable system.” Igliozzi explained that the amended ordinance would be effective March 1, 2009.

Igliozzi noted that for many, the Council has “prioritized pension reform and has introduced and adopted a wide spectrum of changes to reel in the costs of the pension system and to address its unfunded liability.”

Igliozzi went on to say that,  “From closing loopholes and clarifying confusing and/or vague language, as in this ordinance, to making substantive changes to the pension benefit structure, the Council has successfully spearheaded pension reform, and continues to investigate and take action on this issue.”

The full Council will vote on the amended ordinance tomorrow night, Thursday, January 22^nd at 7 p.m.

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