Thursday, March 23, 2017
NorCo Cuts Pension Benefit For New Hires
Employees hired before 1/1/17 are in something called a 1/60 Classification. The formula is as follows:
(1.67%) * (years of service) * (3yr (highest) average salary)/12 = monthly annuity
Based on my calculations, which could be flawed, a 30-year employee whose highest three years results in an average salary of $35,000 would see a monthly annuity of $1,461.25.
Employees hired on or after 1/1/17 are in something called the 1/80 Classification. The formula is as follows:
(1.25%) * (years of service) * (final salary) = monthly annuity
My calculation is that a 30-year employee whose final salary was $35,000 would see a monthly annuity of $1,093.75.
That's a major benefits reduction. Fiscal Affairs Director Jim Hunter explained that's what's going on in some other counties. Lehigh County went from a 1/60 classification to a 1/70 classification in January 2015. Monroe County has been 1/80 since 2011. But Berks is still 1/60.
In other business, Executive John Brown requested the Board to deny a cost-of-living increase for retirees in 2017,though they were eligible for a 0.03% increase. Brown and Cusick opposed the increase,primarily because it would cost the county $549,428.
Peg Ferraro, a Council member seeking reelection who sits on the Retirement Board, voted to cut retirement benefits and deny a COLA to retirees.
Glenn Geissinger, another Council member who is seeking reelection and who also sits on the Retirement Board, was a no-show for the Board's most important meeting of the year.