Renewed Call For Reforms To Save Philadelphia's Employee Pension Fund Without Breaking City Budget
PHILADELPHIA (CBS) -- Philadelphia's fiscal watchdog is renewing its call for major reforms to keep the city's pension fund afloat.
The Pennsylvania Intergovernmental Cooperation Authority (PICA) has been sounding the alarm on the pension fund's drain on the city budget. Board members called for action on more than a dozen recommendations it last year. They include increasing employee contributions to their retirement plans, shifting new employees to a less expensive plan and eliminating DROP -- a much-criticized program that provides a lump sum payment to employees who retire then resume working.
Finance Director Rob Dubow says he agrees with the need for reform but can't say what form it will take.
"This is perhaps the biggest financial challenge facing us but I'm confident we'll be able to work with people to accomplish things that will help the pension fund."
The city would have negotiate the changes with its unions.