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WDAY: The News Leader

Published July 23, 2012, 10:00 PM

Fargo City Commission votes on pension plans for city employees

FARGO, N.D. (WDAY TV) - Some major changes are in store for the fire, police and city employee pension plans. The city commission voted unanimously to overhaul all plans, including raising the retirement age for current city employees from 62 to 65.

FARGO, N.D. (WDAY TV) - Some major changes are in store for the fire, police and city employee pension plans. The city commission voted unanimously to overhaul all plans, including raising the retirement age for current city employees from 62 to 65.

It's been an ongoing debate for nearly a year, how to fix the the city retirement system after a hard-hitting investment performance over the last few years.

The city even considered switching to a 401-K plan, but ultimately decided to keep the current pension structure, though with some significant changes.

Mark Meyer, Consulting Actuary: “You need to make real pension reform a reality to guarantee the security of pension benefits for your employees and to do it in a way that's fiscally responsible and flexible.”

The new changes effect nearly 800 city employees, firefighters and police officers.

Not only will the retirement age change by 3 years but benefit increases aren't expected for at least 20-years.

City firefighters will see employee contributions increase 1 percent in 2013 and 2014. Police will also see the same increases.

The changes, already approved by all three pension boards, met little opposition from the city commission.

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