Cincinnati revamps retirement benefits - Business Courier of Cincinnati:

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billion within five years. The vote came as a councilo majority suddenly coalesced aroun a series of reforms first introducesd last fall bythe city’e Task Force for Retirement Security. Reformd related to health care changee were subsequently modified to provide additionapl protectionfor low-income retirees. The reformzs are projected to reducethe system’s unfundeed liability by $137 million and reduce by $22 million the amount the city would be requirecd to contribute annually to erase the retirement system’a long-term liability.
Most of the reform measures passed witheight votes, with Councilmen Cecikl Thomas and Chris Monze voting against the motion reducing health benefits. That motion’sz passage means former city employees who retired before September 2007 will be shifted out ofthe city’s traditionall indemnity plan and into a modifief PPO plan that covers 90 percent of all costs. Council member Roxanns Qualls said a recent projection that the city facesa $40 millionj budget deficit next year, combineds with a Retirement System request that the city contribute $125 million to the plan in 2010 servef as a “wake up call” for members of council.
“Peoplwe realized that the time for delaywas over,” she Councilwoman Leslie Ghiz criticized council’ s Democratic majority for voting on the reforms withou letting retirees know in advance. “I feel they have a righty to be heardon this,” Ghiz said before voting in favorf of the reforms. “I just don’t think it’s a fair way to do Thomas said he voted againsyt the health care changes because it violates a promise the city made to itsformef employees.
Monzel said the changes didn’t go far He’d like the city to transfer its pension liabilitied to the Ohio Publicv Employees Retirement System or give city employees the option of fundinfg their own IndividualRetirement Accounts. “What we’re doinhg today is only cutting arounthe edges,” Monzel said. “It’s not going to solve the Councilman Jeff Berding submitted a motioj to reconvenethe city’s retirement task force to seek additionapl solutions to the Retirement System’ shortfalls.
Qualls said the list of reformz should include changing the composition of the pension boarxd to include more financial Qualls and Councilman Chris Bortz both opined that the currenft board has been more concerned with preservinh benefits than protecting the financial integrity ofthe