CINCINNATI, OH (FOX19) - Cincinnati city leaders met Friday to talk about pension cuts for city workers.
The city's retirement system is facing a billion dollar shortfall, and it's only expected to get worse. Cincinnati Special Retirement Board says if the city stays under its current plan, funding will run out in 18 years.
The board made recommendations that include:
- Decreasing the cost of living adjustment (COLA) from 3 percent to 2 percent
- Review pension benefits being paid to retirees and beneficiaries to determine what changes may be made to those benefits
- Change average salary used in benefit calculations from a consecutive three year average to a highest consecutive five year average
- Reduce rate of pension accrual from 2.5 percent of pay to 2.2 percent of pay. The first 30 years of service will accrue at 2.2 percent; years beyond 30 will accrue at 2 percent rate of pay
- Increase retirement age to age 60 for 30 years of service and 65 for five years of service for pre-2010 hires and 62 for 30 years of service and 67 for five years of service for post-2010 hires
- Eliminate survivor death benefits and attendant health care coverage.
- Eliminate the $7,500 death benefit for employees
The Cincinnati Organized and Dedicated Employees (CODE) union is threatening legal action if any changes are made to the pension of retirees.
The board will meet with community members before recommendations are presented to city council. A time and location for those meeting has not yet been determined.