The Atlanta Journal-Constitution reports that the plan requires all current police officers, fire fighters and general employees to take a 5% pay cut in the form of a higher pension contribution. It also reduces the so-called “multiplier,” used to calculate pension benefits of future workers to 1%, and reduces the maximum cost-of-living adjustment of pension benefits of future employees to 1%.
The legislation also establishes a cap to protect the city from another financial meltdown.
The news report said actuaries have indicated that over the next 10 years the overhaul will save taxpayers more than $270 million and more than $500 million over the next three decades.
“This pension reform legislation can serve as a model across the country as to how to work collaboratively to address this pressing issue,” Councilwoman Felicia Moore said, according to the newspaper.