City retirees want payout; state allows lump sum payment

Published 07/16 2014 06:09PM

Updated 07/16 2014 08:33PM

Former city employees under an old pension plan continue to receive a two percent cost of living adjustment every year.

But city retirees under the Retirement Systems of Alabama plan say, despite inflation, their pay has not changed.

"That happened October 2004.  So people who have been retired for nearly 10 years, in some cases, have not received any increase,” said former city internal analyst Valerie Harris.

State legislation passed this year allows cities to pay retirees a one-time lump sum payment.

It amounts to two dollars for every month of service and a minimum of $300.00.  But state lawmakers gave cities the option of participating, and the deadline to vote on the measure is approaching.

“How we take care of our retirees says a lot about our community,” Harris said.  “And if we continue to just push city retirees aside, and say ‘no, we're not going to do it,’ that's just not fair.  We're not valuing the people in our community when we do that."

"In the past because of the amount of money that we're paying, a lot more than the average person has been, the city commission has opted not to consider that,” said City Manager Mike West.

He says RSA retirees are getting a better deal, because the city is paying more into their fund than the old one.  He also says the city already owes the RSA more than 120 million dollars.

"Every time the state allows that, you know, obviously the employees want it,” said West.  “But you know, ultimately, it will be up to the city commission to decide how they want to proceed with this."

"All we want, the main thing we want from the city, is to put it on the administrative agenda, have it discussed, and make a decision and have a vote," said Harris.

West says Mayor Mike Schmitz would decide if the city commission would add this to their agenda, but Schmitz was not available for comment.

The deadline for the city to vote on the measure is August 31st.

Copyright 2015 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Featured Business