Wednesday, August 27 2014, 08:33 PM EDT
City Pension Plan to Remain Intact After Council Vote
The Chattanooga employee pension is pretty solid, and it will stay that way, because of action taken at last night's city council meeting.
Council members changed an ordinance that required retirees receiving a pension, from having to pay into the pension plan, if they are re-hired by the city.
The action was taken, when it was discovered that former city employees Moses Freeman and Yusuf Hakeem were getting their pensions, but were forced to pay into the pension plan when they became city council members.
Another city employee was found to be in the same boat with THEIR pension situation.
Council chairman Chip Henderson says, the situation could have become a real problem.
"The problem would be, you wouldn't pay into the pension long enough to really fund it to the point that, you would wind up drawing more out of it than what you put back into it the second time," Henderson said.
Council members voted Tuesday night to change the ordinance, making future retirees that are re-hired, not eligible to pay into the pension plan, while drawing, a city pension.