Panel sets out 3 Atlanta pension options

By Eric Stirgus

The Atlanta Journal-Constitution

For years, Atlanta's pension funds for its retirees have been underfunded -- meaning there was not enough money invested to cover benefits for retirees and future retirees. On top of that, the recession has hurt the performance of the funds.

As a result, the city has poured an increasingly large amount of money into the funds. But the problem is not getting any better.

On Monday, the Pension Reform Panel offered three main options to help the city fully fund, and possibly spend less taxpayer money, on its plans. The Atlanta Journal-Constitution asked visiting Georgia State University Professor Carter Doyle, an expert on pensions, for his thoughts on each.

Option 1

Raise taxes or create a special sales tax.

Pros: Does not require service cuts.

Cons: Raising taxes will anger taxpayers.

Doyle: "If you add more money to the city (by raising taxes or creating a sales tax), that's less money spent by people. I think it's something you wait for until the economy recovers."

Option 2

Cut services.

Pros: Does not raise taxes.

Cons: Impacts the services the businesses and homeowners receive.

Doyle: "That would provide the finances right away...but that impacts services."

Option 3

Require city workers to pay more into their pension plans.

Pros: Does not require raising taxes or cutting services.

Cons: It may hurt employee morale and recruiting.

Doyle: "I think that's the most realistic plan. The city is getting more money. The employee is contributing more to their plan."