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March 22, 2007
TO THE PRESIDENT AND MEMBERS OF THE COUNCIL OF THE CITY OF PHILADELPHIA
I am returning herewith as disapproved Bill No. 060828, passed by the Council on March 1st 2007. This Bill would remove a requirement from the Public Employees Retirement
Code that the Pension Fund achieve the actuarial ftrnding level of 76.7%t before any payments to the Pension Adjustment Fund (PAF) can be made. Instead, positive returns on pension assets of more than 9.75 percent (based on the current earnings assumption) would have to be shared with the PAF immediately, regardless of how poor the condition of the pension plan. All gains between 1 percent and 6 percent would have to be split with the PAF - enriching the benefits of vested and already-retired employees. The City's actuary has estimated Bill No. 060828 could increase the required General Fund contribution by $300 to $600 million, over the next 15 to 17 years when it is projected the Pension Fund will be funded at 76.7%.
Over the last fifteen years, we have restored the fiscal stability of our City, created one of the most vibrant center cities in the nation, created a renaissance in our neighborhoods, reduced taxes by more than $1.8 billion dollars creating a healthier business environment, a robust hospitality industry, and stabilized City finances. Six years of fiscal stability and academic progress in the public schools, enhanced programs for our children, and decreased serious violent crimes has been achieved. Many thought this would be impossible. We have not been timid when confronted with tough decisions or opportunity. Philadelphia has as bright future, however, the job is never done. In the coming years, this City like many others across the country must address more job creation, the need for additional social supports for our families and children, school funding inadequacy, inequity in our property tax system, soaring healthcare costs, gun violence and prison overcrowding tha...
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