New Atlanta pension proposal in the works

It would be the third plan offered in three weeks -- following proposals from Mayor Kasim Reed and Councilwoman Yolanda Adrean -- bringing into question whether too many ideas are holding up progress.

"What they are all trying to do is solve this horrible problem and can be given credit for their efforts," said John Sherman of the Fulton County Taxpayers Foundation. "We well understand the challenge. Now it is a question of how the unions will accept these offers. If the unions plan to resort to legal action, it could take years to resolve and it could bankrupt the city of Atlanta."

Moore gave few details about her plan, the "Employee/Moore Proposal," on Wednesday. She expects to present it to the council at a two-day retreat that begins Thursday.

Moore’s announcement comes less than a week after Adrean released her plan, which has gotten support from Reed. Adrean’s plan, which includes a proposal to create a hybrid plan combining a traditional pension plan with a 401(k)-style retirement plan that shifts more risk to workers, has seen growing council support and appears to be the one to beat. Adrean says it could save the city $20 million annually.

Atlanta is in desperate straits. Annually, pension payouts eat up 20 percent of the city's budget. Reed has pushed for a June 30 resolution, coinciding with approval of the city's $545 million budget, to avoid laying off nearly 200 workers to close an $18 million spending gap.

Since Reed was presented with a list of options by his pension reform committee, there have been five proposals -- three by Reed, Adrean's and now Moore's -- that have surfaced. Moore's plan, which has not been drafted into legislation yet, would increase the contributions of current employees by 5 percent and preserve their defined benefit packages. She said it would save $15 million a year.

Gina Pagnotta, president of the Professional Association of City Employees, confirmed that all the unions helped craft the plan.

"It is a win-win if we can get all of our members to vote on it," Pagnotta said. "If the administration and council had thought to do this in the beginning and engaged with us like Felicia did, we would have had this resolved and moved on."

Moore scoffed at the notion that her plan could be slowing down progress.

"Why would my proposal get in the way?" Moore said. "My proposal doesn’t muddy the water; it is just another option. The mayor had more than one option, so why can't the council?"

Councilman Michael Julian Bond has said he is encouraged by Adrean's proposal but wants it to undergo more vetting. But he also says Moore is doing what should have been done months ago -- increase the council's participation in the process.

"Whether we pick Yolanda's plan, Felicia's plan or a combination of the mayor's, Yolanda's and Felicia's, whatever is best is what we need to do," Bond said.

City Council President Ceasar Mitchell said the body would spend all day Friday discussing pension legislation at the Atlanta Botanical Garden. Mitchell is hoping the discussion will tamp down some of the hostility that has built up over the past two weeks around the pension plans.

Some of that hostility involved Mitchell and Reed over the mayor's desire to get a vote on the proposal by the end of this month. Mitchell has called for a more deliberate pace. Working out the pension problem "is a necessary and prudent step toward ensuring the long-term health of the city," Mitchell said. The council "has a duty and a responsibility to thoroughly review any proposal put before it."