The pension plan that makes working for the City of Carlsbad so attractive may not be around after 2010 if Mayor Bud Lewis has his way, according to a Barbara Henry story in the North County Times.
The mayor said his rough proposal calls for decreasing retirement benefits that the city will eventually pay to any city employees hired after 2010 —- employees hired before then wouldn’t be affected. . . . Instead of a “3 percent” plan, the new city employees could end up with a “2.5 percent” or a “2.7 percent plan,” he said. . . . In Carlsbad, general city employees are eligible for a “3 percent at 60” plan, meaning that if they retire at age 60, they receive an annual pension equal to 3 percent of their highest yearly salary, multiplied by the number of years they were employed by the city. . . .Firefighters and police get the deal at age 50.
Many cities are finding that cost of pension plans can get extremely costly down the road. In some cases contributing to the city filing for bankruptcy protection. That is apparently not the case in Carslbadistan, however, those is want the good pension plan better get on with the City before 2010.
[Link: North County Times]
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