Yolanda Adrean's Pension-Reform Plan Gains Support

Buckhead city council representative Yolanda Adrean's pension-reform plan could provide an instrument of compromise between Mayor Kasim Reed's administration and the city's unions.

Adrean, who chairs the council Finance Committee, introduced her plan Wednesday. The committee gave its approval to the proposal, which sets a 1 percent salary multiplier for determining benefits instead of the 2 percent proposed by Reed.

The plan is the result of the council's previous workshops and discussions on the pension reform issue, Adrean said. 

"In several workshops. we've talked with the stakeholders, the unions and employees and their experts, and talked among my colleagues and to other independent actuaries in the city of Atlanta and the Social Security experts," she said. "They concluded that lowering the multiplier for our existing defined benefit plan was actually a better answer than the mayor had put forward."

Her plan also calls for an 8 percent salary contribution from employees, with the city increasing its contribution to 8 percent from the 7.2 percent proposed by Reed. The mayor proposed a 6 percent salary contribution.

Adrean said her plan would result in "Savings of $16 million the first year and $20 to $25 million on average over the next decade or so."

Pension reform has emerged as the definitive issue of Reed's administration, with soaring pension costs reportedly eating up 20 percent of the city's budget.

Adrean said that her proposal is "a paper that's being studied by the Finance Committee" as a base for developing final legislation. After several workshops on pension reform, the City Council will have another study session next week. The council will also discuss the issue further during a retreat June 10, she said.

"We've invited actuaries and experts, including those put forward by the unions, to join us in conversation at our retreat," she said.

Taking a leading role in pension reform, Adrean  strives to gain as much information as possible on the subject. On Thursday, she was participating in a symposium at the Andrew Young School of Management in which economists, actuaries and financial planners were discussing "the very issues we're studying, pensions, post-retirement benefits and swaps," she said.

Her proposal gained the support of Reed's top aide, Chief Operating Officer Peter Aman, and qualified support from Jim Daws, president of the Atlanta chapter of the International Association of Fire Fighters, The Atlanta Journal-Constitution reported.

Here is the link to The AJC's article on Adrean's plan. Here's a link to the PDF of Adrean's proposal.