Monday, March 7, 2016

Mayor seeks to change pension-vesting policy



Mayor Kenney wants to double the length of time political appointees must work for the city before they can earn a pension.

"Municipal pensions are made for people who are going to work their career in city government, making generally a lower wage than they would in the private sector," Kenney said during a meeting with the Inquirer's Editorial Board last week.


At the moment, city employees not covered by civil service or one of the four municipal unions must work for the city for five years before they are eligible for a pension. Kenney would like that lengthened to 10 years, the same vesting period now required for the city's union employees.

"You should not be rewarding a high-paid political appointee who stays on five years with a lifetime payment," Kenney said. "I would like to change that back to 10-year vesting."

Shortly after taking office, Kenney rejected a request to keep former Mayor Michael Nutter's communications director, Desiree Peterkin Bell, on the city payroll until Feb. 5 so she could make her five-year mark and be vested in the pension system. She stood to collect a $17,610 annual pension when she turned 60.

"I think, optically, the five-year vesting is terrible," Kenney said.

As of July, there were 3,078 city employees enrolled in the five-year vesting plan, according to the pension board. A number for how many people have taken a pension after working five years was not immediately available.

If Kenney wanted to change the five-year vesting policy, he would have to get legislation approved by City Council. All Council members have aides who could vest in five years.

Source: Philly.com

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