Proposed pension plan could cost taxpayers millions of dollars

Source: WGCL

The Atlanta City Council is moving forward with a controversial pension plan that would retroactively pay millions of dollars to hundreds of current and former city employees, some with only five years of service.

In a unanimous 7 to 0 vote, members of the city council voted Wednesday to go forward with a controversial plan allowing a select group of city employees to transfer to a defined pension plan that would go into effect July 1.

Outspoken critics, eager to address city leaders, claim the new pension lacks transparency, is a waste of taxpayer dollars and should be rejected.

According to the ordinance, eligible employees hired between 2000 and 2005 will be given the option to opt into this enhanced pension, regardless of salary or how much money they had paid into one of three Atlanta pension funds. Ken Allen, union rep for Atlanta’s police department says the current pension is underfunded and stresses the system.

CBS46 obtained the list of those confirmed to opt into the pension plan, where the city of Atlanta would promise to pay a portion of the new enrollee's salary up until their death. The transfers will also be irrevocable.

Those confirmed so far include councilwoman Natalyn Archibong, the director of employee and retiree benefits, aides to city council members, the city auditor, a former chief judge and Candace Byrd, the former chief of staff for former Atlanta mayor Kasim Reed.

You may recall Bryd faced intense scrutiny after media reports revealed she spent more than $228 thousand on City Hall-issued credit cards before leaving office.

CBS46 learned the council has no idea how much this new pension will cost taxpayers to implement, what kinds of conflict of interest it creates for council members who voted to improve their own pensions and when the total list of 288 members who opted in will be released.

The full council is expected to make its final vote this coming Monday.

Stay with CBS46 News for updates.

Copyright 2018 WGCL-TV (Meredith Corporation). All rights reserved.

Recommended for you