$172 million in savings will be realized over five years
Today, Mayor Michael Nutter, City Controller Alan Butkovitz and the Pension Board announced a plan to reduce the City’s pension obligations while saving the city $170 million over the next five years.
The pension plan proposal includes: lowering the assumed return on the pension investments from 8.75% to 8.25%; increasing the period over which the unfunded liability is paid off from 20-40 years; and spreading out the fund’s earnings and losses from five to 10 years. The total savings from these actions would amount to more than $170 million to the City’s general fund through FY14.
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