City Explores Rescue Options For Pension System
PHILADELPHIA (CBS) -- A Philadelphia City Councilman is moving forward on a proposal to ease the burden on the city's troubled pension fund by offering buy-outs.
At last week's council session, Derek Green introduced a resolution to hold hearings on pension buy-outs.
It's just an interesting and creative way to try to address the issue we have in reference to our pension system, which is currently about 45 percent funded," Green said.
The city is close to 6 Billion dollars short on its 11-billion dollar pension obligation to city workers, a common problem governments are facing. The buy-out proposal was first advanced by city controller Alan Butkovitz, who suggested the onetime pay-outs would be about half of what workers might collect in monthly payments after retirement. District Council 47 president Fred Wright, who represents the city's white-collar workers says he'd testify against it.
"It's a good deal for the city," Wright said. "It's not a good deal for the pensioners."
No other city has tried it, though Chicago is also studying the idea.
