G’town pension deal for public works

Contributors can retire early

The people who f ix water mains in freezing temperatures and spread asphalt in the other temperature extreme made their case to Germantown officials, and now they may contribute more to their pensions so they can retire early.

The Board of Mayor and Aldermen Monday approved a pension amendment that will allow 48 employees in public works and general services to put 7 percent of their pay into the pension fund and retire at 50 or 55.

The city will add 3.3 percent. It will not know the total additional cost until it sees how many sign up.

The workers have 30 days to do so.

“It’s a tremendous thing for my staff,” Bo Mills, public works director, said. “This started showing up on employee surveys four years ago. These guys are seeing their fellow public works guys retire at 62, and they are broken down in their knees, elbows, backs, hands. Can you imagine pouring concrete every day or spreading asphalt at 300 degrees on a 95-degree day? It’s hard work.”

Germantown froze its pension plan on June 30, 2013. Anyone hired after July 1, 2013, contributes 5 percent of annual pay to a pension fund. The city matches the contribution and guarantees 5 percent annual growth.

In 1989, Germantown made a concession to its original pension plan, allowing police and fire fighters to pay in more so they could retire early.

Public works employees wanted the same benefit and initiated the discussions on their own.

“They said, ‘Look at our quality of life,’ ‘Look at the people who have retired,’ ’’ City Administrator Patrick Lawton said. “It’s hard physical work. The question they asked us was: ‘If we contributed to the plan, could we pay for the ability to retire at 55 or early at 50?’ ”

If the whole pool signs on, the amended plan would cost the city $75,000 a year, according to Alderman Rocky Janda. But, he said, “We don’t think they will all take it.”

Mills expects 60 to 65 percent of the pool will, however. “A couple of them said, ‘Where’s your pen?’ They are ready to sign up today,” he said.

Germantown will make the 3.3 payment on top of what its actuarial determined contribution is for workers hired before July 1, 2013.

Workers may not change their minds after signing the paperwork, and they must participate at least 10 years.

“For every year they participate, it’s 2.225 percent more to their account,” Mills said.

The average employee in the eligible pool has been with the city 18 years. They include people who take care of ditches, streets and sidewalks, plus heating and cooling technicians and other maintenance staff.

Many cities let workers retire after 30 years, but the retirement age is 62 in Germantown, regardless of years of service.

“The overall intent is to take care of those individuals who take care of our citizens, Alderman Dave Klevan said. “I would rather reward them for wearing out than rusting out. Our people wear out. They don’t sit around.”