As they drifted in and out of a work session Tuesday listening to a lengthy side-by-side comparison of the two leading proposals to solve Atlanta's $1.5 billion pension liability, members of the City Council appeared to be headed toward a Thursday resolution.
That resolution likely won't include elements of Councilwoman Felicia Moore's plan, which will continue to add drama to the upcoming vote.
Although two plans were discussed Tuesday, some left the meeting convinced that consideration of Moore's proposal, which she produced after working with union representatives for the city's 7,000-plus workers, was just for show.
“We were supposed to have a fair comparison, but that simply has not happened,” Councilman Michael Julian Bond said.
Thursday's special call meeting could mark a turning point in Atlanta’s history as the council prepares to vote on overhauling the city’s pension system. Atlanta's pension struggle is similar to those being fought by Georgia, several metro area counties and a number of major U.S. cities. Atlanta, which currently sees its pension system consume about a fifth of its annual budget, joins a few large cities and scores of smaller ones that have crafted plans to cap swelling pension bills.
The plan the council is expected to vote on was produced by Councilwoman Yolanda Adrean. It would combine a traditional pension plan that promises reduced benefits with a 401(k)-style retirement plan that would shift more risk to employees. Supporters of the plan, which has the backing of nine council members, say it could save the city $20 million annually.
Mayor Kasim Reed has endorsed the Adrean plan and has called for it to be approved by June 30, coinciding with passage of the city's $545 million budget, to free up spending and avoid as many as 200 layoffs to close an $18 million spending gap.
Moore’s plan, which actuaries said Wednesday was cheaper, would cost employees more in the short term, but they would see savings in the long term. Her plan would require workers to pay an additional 5 percent toward their retirements and keep most of their retirement benefits.
“The proposal not before us is the cheapest and most affordable for the city,” Bond said. “We are going to have to answer the question, why didn’t we go with the cheapest option? Why did we allow ourselves to be rushed?”
Short of getting parts of Moore’s plan on the agenda, Bond is calling for a delay.
Ten votes are needed to pass a pension overhaul because it would involve changing the City Charter.
"If there were 10 votes for the Adrean plan, we wouldn't be here discussing this," Moore said. "We would have already voted."
In several heated exchanges Wednesday, Adrean told Bond it is time to move on.
“This council has been talking about pension reform since 2009. I looked at the notebooks and they are the same ideas we are talking about today,” she said. “We have immersed ourselves and had experts come in. We are at a tipping point. As council, we are ready to make a decision. Pressure makes a diamond right?”
“Yes,” Bond snapped. “But that is over time.”
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