Reed gets testy defending pension reform effort

Atlanta Mayor Kasim Reed testily defended his plan Tuesday to reform the city’s employee pension spending crisis and refused to accept criticism for problems created before he took office.

"Enough is enough," the mayor said during a meeting with the panel he created earlier this year to study the pension problem.

The verbal sparring began when the head of the city's firefighter union asked why Atlanta has been unable historically to pay employees more and provide better services. Lt. Jim Daws said strong pension benefits are necessary to keep employees, in part because their salaries are low. The average starting salary for most firefighters and police officers is below $35,000.

Daws feels city workers have been unfairly blamed for Atlanta's mounting pension costs, which have risen since 2001 from $55 million to $125 million, nearly one-quarter of city spending. Union leaders blame city leaders for under-funding the pension plans.

Reed, who took office in January, countered that the city could pay its workers more if it had not cut the property tax rate seven times in the past 10 years and hadn't increased benefits in 2001 and 2005 that resulted in increased pension spending.

"I'm not going to take the attack for choices I did not make," the mayor said, pounding the desk at one point.

Daws said he was not attacking Reed.

"What I am asking is a difficult question that needs to be answered," said Daws, who is serving on the panel.

Leaders of the city's police and firefighter unions, along with the Professional Association of City Employees, differ on the mayor's plan to increase the employee vesting period for city workers from 10 years to 15 years. The unions contend Reed cannot legally change the vesting period for current workers with less than 10 years on the city payroll. Reed said the move will save the city at least $8 million in the next 12 months and will help him avoid layoffs in his proposed budget, scheduled to be released Wednesday to the City Council.

Georgia State University visiting professor Carter Doyle, who has expertise in pension issues, compared the mayor's plan to that of a college telling students in their senior year that they need more credits to graduate.

"I'm not sure legally how it would work," he said of Reed's proposal.

All sides agree the city needs pension reform. The pension panel's chair, John Mellott, warned Atlanta could become financially weakened if it continues on its current pace.