Some Trenton City Council Members Unhappy With New Pension Plan

Not everyone was happy with the recent decision to make the move from a defined contribution program to a defined benefit program for Trenton police officers.

Union employees of the now have a guaranteed pension instead of a 401k plan and two city council members are unhappy with the new base pay pension plan.

Council members Robert Howey and MaryEllen McLeod expressed their disappointment in Thursday's decision to approve the plan at Monday's regularly scheduled city council meeting.

McLeod voted against the pension program. She said the program would cost the city more money over time.

"I voted 'no' and I want the residents of Trenton to know that I voted 'no,' because I do not believe that this is in the best interest of the city," McLeod said. "Even though from an actuarial standpoint it might look good on paper for a few years I believe that over the long run it is going to cost the city a lot of money."

Councilman Robert Howey was out of town at the time the plan was voted upon and said he was disappointed the vote was made without him. He asked that a letter be read into the record on Thursday.

In his letter Howey stated:

Dear Mayor, council and administration,

"Please be advised that after careful review and consideration of the proposed contract I cannot support the plan as presented. Although, there are several structural issues that have not been addressed in this contract, my primary concern is the reopening of the defined benefit program.

"Once again I would like to formally request that the administration and council take the time necessary to develop and propose a more sustainable plan."

Howey said the plan was irresponsible and had "way too much liability" on Monday.

"I think it was a mistake," Howey said.

Mayor Pro-Tem Terry Teifer responded by saying the facts show the plan is a savings to the city for the next ten years due to provisions in the contract.

"The actuarial cost, going forward, based on the actuarial report, is less than what we are paying out of our pocket today," Teifer said.

The city stands to save between $300,000 and $700,000 annually over the next ten years according to the actuary report to which Teifer refereed.