CINCINNATI, OH (FOX19) - The Cincinnati City Council's Budget and Finance Committee will meet Tuesday afternoon to discuss the city's retirement system.
City Council will hear recommendations from the public and the Board of Trustees on how to manage the retirement system, in order to avoid the pension fund from running dry.
The meeting will be held at 1 p.m. at City Hall.
The city's retirement system is facing a billion dollar shortfall. Cincinnati Special Retirement Board says if the city stays under its current plan, funding will run out in 18 years.
The retirement board made the following recommendations in November:
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