Baltimore Considers Employee Pension Contributions

Mayor_Stephanie_Rawlings-Blake_Courtesy of the Office of Mayor Stephanie Rawlings-Blake
Courtesy of the Office of Mayor Stephanie Rawlings-Blake

As reported in the Baltimore Sun, the Baltimore City Council’s finance committee is scheduled to hear testimony Thursday on a proposal by Mayor Stephanie Rawlings-Blake to require thousands of civilian employees to begin making contributions. As described,

The proposal would require non-public-safety workers to contribute 1 percent of their salaries to the pension fund next fiscal year. The contributions would increase each year for five years until workers were contributing 5 percent. . . To help compensate for the changes, Rawlings-Blake is proposing a raise for employees of 2 percent a year for five years.

The Baltimore City Employee Retirement System is facing a $700million in unfunded liabilities, according to the Sun.  As reported,

Officials said the pension change and pay increase would cost the city about $180,000 next fiscal year but begin saving money after that: $2.1 million in 2015, $4.4 million in 2016, $6.5 million in 2017, and $8.5 million in 2018.

The savings would help the city fund property tax cuts of 22 percent over the next decade, said Ryan O’Doherty, the mayor’s spokesman.

For more information, see the full story from the Sun.