Thursday, November 22, 2012

City council hears retirement concerns

The city of San Angelo is primed for business, with plenty of discussion but not much action from the City Council on Tuesday.

The council discussed benefits for retirees, renting space in City Hall to an arts coalition and preparing to prioritize which capital projects need improvement.

It was a day "of dutiful follow-up on actions and activities," Mayor Alvin New said.

The City Council heard, without action, about raising benefits for city retirees through the administrating Texas Municipal Retirement System. New suggested making it a priority for the following year's budget.

The increase would bring in an additional $1 million for retirement benefits to the city's approximately 500 retirees by giving them higher adjustments for cost of living.

"Retirees ... in general receive an increase in their benefit equal to 50 percent on the consumer price index," Assistant City Manager Michael Dane said.

The consumer price index is a measure of the average change of prices on a range of goods, according to the U.S. Department of Bureau of Labor Statistics.

A few years ago, the city decreased benefit levels from a 70 percent benefit level to a 50 percent benefit level to control growing contribution-rate requirements from the Texas Municipal Retirement System. The TMRS is a statewide government board that manages retirement plans.

The decrease in benefit levels had the side effect of changing previous retirees' benefits as well because of the mechanics of the TMRS formula.

"They were affected, some of them to the point that they weren't going to get cost-of-living adjustments," Dane said.

Councilwoman Charlotte Farmer said she hoped for a regularly updated COLA benefit.

"We've got to seriously consider this," Farmer said, although she didn't think it could go into effect this year.

Dane said the question for a COLA benefit is "how do you fund it?"

Nothing had been set aside for a COLA benefit change in the last approved budget.

City Manager Daniel Valenzuela said the city could hold a workshop on COLA benefits in January.

Councilman Dwain Morrison wanted more action, and Farmer told city staff to get a committee going.

"Let's quit talking about it" and be a support to employees, Councilman Johnny Silvas said.

New said he wants to commit to dental and COLA benefits for the fiscal year 2013 budget since it is early in the budget year.

Retired Police Chief Russell Smith said the city should be careful because legislators in Texas could change the system or lose it altogether.

"We have policemen retired at terrible rate," Smith said. "Every time you raise something $10, what's $10 for some of y'all is real money for some of these people."

Gregg Mackey, in public comment, said he started at $3.50 an hour, and at that time the contribution was 3 percent. He asked that the council do what it could to improve the situation for retirees.

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