Unions dissatisfied with retirement plan

    Philadelphia Mayor Michael Nutter is proposing a new retirement system for city workers. It’s designed to help the city save money. But the head of one of the city’s largest worker unions isn’t happy with the plan.

    Philadelphia Mayor Michael Nutter is proposing a new retirement system for city workers. It’s designed to help the city save money. But the head of one of the city’s largest worker unions isn’t happy with the plan.

    Listen:

    [audio: 090618tmunion.mp3]

    The mayor’s proposal is to add another tier to the city’s retirement system for new hires. They would have to pay into the program if they want to receive the same benefits as current workers when they retire. Pete Matthews is head of blue-collar city workers union District Council 33. He says the proposal amounts to a concession they aren’t willing to accept.

    Matthews: I see it as a problem just as the other concessions that the mayor wants. It is a problem. We are in the business of fighting for our members we’ve fought hard over the years for the gains that we have and we don’t have any intentions of giving it up.

    Pension expert Elliot Dinkin says the hybrid program is designed to share the risk. He says this type of program is more common as municipalities struggle to offer retirement options.

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