Higher retirement costs hit city,some employees

The City of Plaquemine, along with others, will pay more this year into its employee retirement systems, and police officers and firefighters will see their costs go up, as well.

For the Police Department alone, the city and the officers will pay more than 35 percent of payroll – more than $350,000 a year – for one benefit, Mayor Mark A. “Tony” Gulotta told the Board of Selectmen.

“I always thought health insurance was a hit,” the mayor said.

Finance Director Laurie Berthelot said the state is mandating the increase contributions to make up for its underfunded liabilities.

Gulotta said underfunding of retirement systems is a nationwide problem that is “going to take wholesale changes.”

According to information from Berthelot, the cost to the city for police retirement will rise from 25 to 26.5 percent and from 7.5 to 10 percent for police officers, while city payments for firefighters will rise from 21.5 to 23.25 percent and from eight to 10 percent for firefighters as of July 1.

“In the State of Louisiana, I can't say I don't want to be in the retirement system,” noted Police Chief Orian Gulotta.

The Legislature increased rates for the employees and the state has directed the city to make the deductions even though the governor has not signed the bill into law, the city officials said. To avoid an immediate increase, the city moved payday up from Friday to Thursday, June 30 last week.

Mayor Gulotta said the bill requires the city to make the deductions from the checks of all firefighters and officers whose household income is below the poverty level; information the city does not have on its employees.

Berthelot said she had not been able to calculate how much the increase to the city will be because of that provision. For employees below the poverty level, the city will have to pick up more of the costs.

The city's contribution to the Municipal Employees Retirement System has been increased from 14.25 percent to 16.75 percent this year, but employees' contributions will remain at 9.25 percent of their pay, as it has for at least the past 10 years.

Plaquemine City Judge Michael M. Distefano Sr. is the sole city employee who is a member of the Louisiana State Employees Retirement System, where governments contribute 30.5 percent, and employees 11.5 percent.

The increases in retirement contributions will mean there is no room for step increases in the budget for the city's next fiscal year, which starts October 1, Gulotta said.

“I'm hoping we can find ways to come up with the money,” he said.

Berthelot said the required contributions are expected to increase again next year.

“The only thing we can do in the future is pay for retirement,” the mayor said, although he noted, “we do have control over it because we have control over how many employees we have.”

In action last week, the city council approved Gulotta and Berthelot's recommendation to provide employees who are on call after hours and on weekends with a $15-a-month telephone allowance for using their own cell phones.

“We thought about buying city phones, but that's a hassle,” the mayor said. “They would have to carry two phones, and what if they lose the phones?”

The city council also set a special meeting for 6:30 p.m. Thursday, July 14, to discuss changes to the city's personnel manual regarding sick leave and vacation time.

Higher retirement costs

hit city,some employees

The City of Plaquemine, along with others, will pay more this year into its employee retirement systems, and police officers and firefighters will see their costs go up, as well.

For the Police Department alone, the city and the officers will pay more than 35 percent of payroll – more than $350,000 a year – for one benefit, Mayor Mark A. “Tony” Gulotta told the Board of Selectmen.

“I always thought health insurance was a hit,” the mayor said.

Finance Director Laurie Berthelot said the state is mandating the increase contributions to make up for its underfunded liabilities.

Gulotta said underfunding of retirement systems is a nationwide problem that is “going to take wholesale changes.”

According to information from Berthelot, the cost to the city for police retirement will rise from 25 to 26.5 percent and from 7.5 to 10 percent for police officers, while city payments for firefighters will rise from 21.5 to 23.25 percent and from eight to 10 percent for firefighters as of July 1.

“In the State of Louisiana, I can't say I don't want to be in the retirement system,” noted Police Chief Orian Gulotta.

The Legislature increased rates for the employees and the state has directed the city to make the deductions even though the governor has not signed the bill into law, the city officials said. To avoid an immediate increase, the city moved payday up from Friday to Thursday, June 30 last week.

Mayor Gulotta said the bill requires the city to make the deductions from the checks of all firefighters and officers whose household income is below the poverty level; information the city does not have on its employees.

Berthelot said she had not been able to calculate how much the increase to the city will be because of that provision. For employees below the poverty level, the city will have to pick up more of the costs.

The city's contribution to the Municipal Employees Retirement System has been increased from 14.25 percent to 16.75 percent this year, but employees' contributions will remain at 9.25 percent of their pay, as it has for at least the past 10 years.

Plaquemine City Judge Michael M. Distefano Sr. is the sole city employee who is a member of the Louisiana State Employees Retirement System, where governments contribute 30.5 percent, and employees 11.5 percent.

The increases in retirement contributions will mean there is no room for step increases in the budget for the city's next fiscal year, which starts October 1, Gulotta said.

“I'm hoping we can find ways to come up with the money,” he said.

Berthelot said the required contributions are expected to increase again next year.

“The only thing we can do in the future is pay for retirement,” the mayor said, although he noted, “we do have control over it because we have control over how many employees we have.”

In action last week, the city council approved Gulotta and Berthelot's recommendation to provide employees who are on call after hours and on weekends with a $15-a-month telephone allowance for using their own cell phones.

“We thought about buying city phones, but that's a hassle,” the mayor said. “They would have to carry two phones, and what if they lose the phones?”

The city council also set a special meeting for 6:30 p.m. Thursday, July 14, to discuss changes to the city's personnel manual regarding sick leave and vacation time.