Small Town News

Legislators work with Marked on pension compromise

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Legislators introduced a compromise bill March 31 in an effort to save taxpayers nearly $500 million over 15 years by reworking the state's pension plan.

House Bill 81 is the result of work between legislators, union leaders and Gov. Jack Markell to save money for the state and taxpayers.

"There was a tot of give and take on both sides. This was not an easy process, but ultimately

we reached a point where we have a plan that addresses the problem," said Rep. Longhurst, D-Bear, a supporter of the bill, in a press release.

"This legislation protects the pensions of our current employees, stabilizes our pension fund, addresses the rising cost of healthcare and saves taxpayers nearly a half-billion dollars over 15 years. By addressing this issue now, rather than waiting, we are making our state's economic future even stronger." The legislation would: Increase future hires' contribution to the pension from 3 percent to 5 percent after the first $6,000 of earnings

Increase the years of service from five years to 10 years before a pension vests

Increases some of the age and service requirements for receiving full retirement benefits.

"This proposal represents a true compromise among all parties. We looked at every area of the pension plan and discussed them in great detail," said Senate Majority Leader Patricia M. Blevins, D-Elsmere, who represented Senate Democrats in the meetings, according to the release. "By taking these important steps, we are ensuring that our pension fund, which already is one of the strongest in the country, remains strong and viable for years to come."





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