DiCicco seeks to close pension loophole
Thursday, April 8th, 2010
A Philadelphia City Councilman is trying to stop short-term city employees from buying into the pension system.
Councilman Frank DiCicco says he doesn't want to see short-term Philadelphia city employees get the opportunity to use service in other governments as a credit to get a full pension here.
DiCicco: In the future what this bill will do you will not be able to be vested for the pensions unless you have a minimum of five years service in the city of Philadelphia, so that will mean if the new managing director or someone else comes in they will not be able to use that service from the other municipality unless they have five years service with the city of Philadelphia.
Former Managing Director Camille Barnett, who has worked for the city for just over two years, has the opportunity for a lifetime pension of nearly fifty thousand dollars a year using her service in other governments. First she would have to "buy" three years credit at a cost of 120 thousand dollars.
You should start to consider your Pension Options at least 6 months before your retirement date and this will make sure you have all of the information well before retiring.
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