Benefits August 5, 2011
Detroit Police Approve Move to 403(b)
August 5, 2011 (PLANSPONSOR.com) – Detroit Mayor Dave Bing reached what he called a landmark agreement with the Detroit Police Officers Association (DPOA) to change their retirement benefit from a defined benefit pension plan to a 403(b).
Reported by Rebecca Moore
The move is expected to save the city more than $50 million over five years, according to the Detroit Free Press. The news report said the agreement marks the first time a Detroit municipal union has approved such a change.
On its Web site, the DPOA said less than 1% of the membership voted against the agreement.
The Free Press reports that Bing said he hoped the pact will compel other unions to agree to concessions on health care and pension benefits — two of the city’s largest expenses — as part of a larger plan to save the city $121 million a year and stave off state appointment of an emergency manager (see Detroit Pension Boards Challenge New Emergency Powers Law).You Might Also Like:
How Should Plan Sponsors Stand Up a New Retirement Plan Committee?
Plan sponsors can find education and training for their retirement plan committees from several sources, but how best to build...
How Sponsors Can Get the Most out of DC Plan Design Changes
Annuities may be a hot topic, but sponsors can add the most value to plans by incorporating features like auto-enrollment...
Benefits |
DOL Prevails in Court Orders, Removing TPA From Acting as Fiduciary for Sponsors
The regulator prevailed in motions against a Pennsylvania retirement third-party administrator it alleges stole $5.5 million in retirement plan assets...