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SteveD: The nature of a defined benefit plan is to supplement Social Security so that the combined total of Social Security and the pension gets the employee to the defined benefit -- which is a percent of salary. If you disconnect the two of them then the employee gets his/her Social Security plus the defined benefit. This might take him/her over the top of the salary at retirement. That's OK for the employee contribution but not OK for the employer contribution which should be a percent of the salary including the Social Security program. IRS changed its rules about all of this a few years ago which caused most private sector plans to cancel their defined benefit plans. The state is taking a hybrid approach to this and the city should follow suit.

It is not OK for the city unions to keep their membership and the taxpayers in the dark over this issue under the illusion that a problem does not exist.

From: Avedisian looks to address weak sister of city’s 4 pension plans

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