The Finance Committee of the Trenton City Council met earlier this week, reviewing the city?s retirement program and agreeing to recommend changes in the system.
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The Finance Committee of the Trenton City Council met earlier this week, reviewing the city?s retirement program and agreeing to recommend changes in the system.
City Administrator Kerry Sampson said the committee will ask the council, as part of the budget process, to make changes in the retirement plan that would allow longtime employees a chance to retire earlier and see an increase in their retirement payments each month. Sampson said the city has seven employees who in the next five years would most likely retire should the city adopt the new plan. Those employees have service to the city of between 28 and 33 years and the changes in the plan would allow them to receive additional retirement funds if they choose to take advantage.
Sampson said the change would initially cost the city and Trenton Municipal Utilities $107,000 in the first year, but by the fourth year, the city would actually see a payback in their investment in that those individuals who retire would likely be replaced with individuals who would make less than the individual who would be leaving the city. As a result, the city?s contribution into the retirement system would be less because the contribution is based on the salaries being paid to those individuals.
The recommendation will be taken to the council at its next meeting.