GAINESVILLE – The Gainesville City Council will decide Tuesday evening whether or not retirement benefits will be made to eligible employees when they turn 60 or when they turn 62 years old.
Either decision will be a change from the current retirement minimum age of 65.
At its work session on Thursday, the city council heard a pair of reports that the city’s pension plan was sound and in need of an update.
An Actuarial Valuation presented by Segal Consulting broke down the way the plan is funded and commented that contribution requirements had been met. Segal’s Jeanette Cooper told council members, “Under the statute, 26.4% of payroll goes into the pension plan each year; half of that comes from the city, half of it comes from employee contributions.”
“It’s a positive outlook and it’s been slowly improving over the years,” Cooper said about the plan as she ended her presentation.
Next Ed Emmerson, Gainesville Employee Retirement Plan A attorney, addressed the city council with suggestions about the future direction of the pension plan. He recommended a total restatement of the plan’s document since the last time the document was restated was in January 2001. He said a restatement would include the two dozen or more minor amendments that had been made since the 2001 document was issued.
“To kind of update the plan for its operation and remove outdated provisions,” Emmerson said, “modernizing the plan, in a sense.”
One of the major changes to the plan suggested by Emmerson was lowering the age restriction when retirement benefits become available. “From 65 to age 60,” Emmerson said. “It (goes) from 65 and ten years of service to 60 and ten years of service for all employees.”
Mayor Danny Dunagan said in response to Emmerson’s recommendation, “I would like, and this is just me, for it to be at 62, the same as Social Security.”
After Emmerson’s presentation, Councilman Sam Couvillon said of Dunagan’s comment, “I’m kind of in agreement and willing to listen more about what you are saying about moving to age 62.”
Dunagan added, “Social Security, you don’t start drawing it until age 62…also I think it would make sure the plan lasts a little bit longer as far as having it funded more.”
Emmerson also suggested a cost-of-living adjustment provision be included in the new document. “To work with city management…to consider cost of living increases from time to time…my understanding is the last cost of living adjustment for the plan was 1991.”
City council members agreed to discuss among themselves the recommended plan changes and make a final decision when they meet Tuesday, December 21, 5:30 p.m. in the Public Safety Complex on Queen City Parkway. The public is welcome to attend the meeting and comment on the resolution.
