Philadelphia City Council Holds Hearings On DROP

PHILADELPHIA (CBS) – Now that the Philadelphia primary is out of the way, City Council members hope to deal with the controversial DROP pension plan before they take their summer recess. It’ll come up at today’s session.

Councilman Darrell Clarke hopes he and his colleagues will craft something that makes sense.

“The issue early on as it relates to calls from the administration to eliminate the program was based on cost. If we could eliminate cost, I don’t understand why there would be a problem with a municipal employee having a retirement program.”

The legislation will flow at the direction of Council President Anna Verna.

“I think it’ll make it better. It’ll give us some options,” she said. “But, I just don’t know that it would be cost neutral.”

The stipulations are said to include a lower lump sum interest rate that participants would earn, and pushing back the minimum retirement age to enroll. Mayor Nutter and critics of DROP would rather see council jettison the entire program, and do away with it.

Reported by Steve Tawa, KYW Newsradio

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One Comment

  1. Frank Graff says:

    I am considering a run for council at large in November General Election. I am not for a pension on top of a pension. Drop is a No with me. I want less parking meters in town, and cut into the personnel at the Parking Authority to absorb the revenue. I want to reduce the cronies on the payroll by fifty percent through management by objectives, also know as MBO. It worked at PennDot and I can make it work at the City. My 30 years as manager of State Highways and Bridges, carries a ton of training in all area’s of todays problems in the workplace, and where better to improve my abilities, but to invoke them on city patronage. More to come soon, in the way of a formal announcement. Hope you will tune in.

    1. grumpy says:

      Go for it Frank!

  2. John in Oaks says:

    We need to switch all public employees to a defined contribution plan instead of these defined benefit plans. That would eliminate the double-dipping issue, as people who retired early would just be taking from their own retirement pool instead of an “infinite” money stream backed by taxpayers.

    (BTW: This would also remove the issue where pensions are based on pay during the last few years of service so public workers put in tons of overtime for a few years to get outsized pensions for the rest of their lives).

    The rest of us in the private sector have always had defined contribution plans – why should public employees have anything different?

  3. williejoe says:

    Drop DROP! Period, it’s a money grab by those in office to extend their lunacy.

  4. bob says:

    The City Council Cowards will vote to extend the DROP, perhaps with a few small changes. They fear the votes of city employees. My neighborhood will vote AGAINST curtis jones if he votes to retain the DROP in ANY form.

Comments are closed.

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