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Baltimore Might See Police Exodus Due to Pension Payment Terms

Excerpt: A generous Baltimore police pension plan is likely to create an unprecedented exodus of experienced officers over the next eight months and has city leaders scrambling to fill the ranks. Nearly a fifth of the Baltimore Police Department is eligible to retire under the provisions of a retirement plan with cash pay-outs so large it is becoming increasingly irresistible ...

Baltimore Court Ruling on Police, Firefighter Pensions Likely Faces Appeals from Unions and City Government

"Judge Julie R. Rubin ruled last year that the city breached the unions' contracts when it changed pension benefits for people who were already retired.... In Monday's ruling, she said those retirees are entitled to seek damages for the lost benefits. But she also ruled that the city could make modifications to the pension contract that extended the years of service from 20 to 25 years for employees to receive pension benefits."

EEOC Files Appeal in Baltimore County Pension Case

"The [EEOC] is appealing a court ruling that absolved Baltimore County of having to return money to thousands of employees who overpaid into the pension system.... EEOC lawyers have argued that the county knew for years that its age-based pension plan rates were discriminatory, and the possibility of having to pay employees back should have been 'foreseeable for several decades.' A federal judge ruled in 2012 that the county had been wrong to overcharge older workers. In August, another judge ruled the county would not have to pay those workers back."

Baltimore County Pension System Ruled Age-Discriminatory

"A federal judge has ruled that Baltimore County's pension system discriminates against beneficiaries because older workers were required to pay more toward their retirement than younger workers.... In a statement, EEOC regional attorney Debra Lawrence said the county provided no financial justification for the practice."

Baltimore County Considers Issuing Bonds to Raise Funds for Pension Contributions

"Baltimore County officials say they can close a gap in pension funding while saving taxpayers hundreds of millions of dollars. But their planned strategy is one that carries considerable risk, experts say. County Executive Kevin Kamenetz has proposed borrowing $255 million through pension obligation bonds and repaying the money over the next three decades."

Baltimore County Seeks to Borrow $255 Million to Fund Pension System

"Baltimore County Executive Kevin Kamenetz wants to borrow $255 million and repay it over the next 30 years to help fund the county's retirement system, a move that would carry risk but that the administration says could benefit taxpayers in the long run. [The county's] Administrative Officer ... told the County Council ... that the administration would introduce legislation next week to allow the county to issue pension obligation bonds. The bond issue would not have to be approved by voters. In July, the county lowered its projections on the assumed investment earnings for its retirement system, meaning taxpayers must contribute an additional $15 million annually to the retirement system starting next year."

Union Questions Baltimore County's Decision to Borrow $25 Million from Pension Fund for Recycling Facility

"Baltimore County plans to borrow $25 million from its pension system to upgrade recycling facilities, a move some County Council members and union leaders are questioning.... The county plans to borrow the money at an interest rate of 7.875 percent and repay it within 15 years. But the Fraternal Order of Police Lodge No. 4 questioned the legality of the move, union president Cole Weston said. ...'The employee pension system has an obligation and responsibility to the people in the plan,' said Weston, who served on the pension system's board for more than a decade until his June retirement. 'And pension systems are not to be used as banks.'"

Baltimore Mayor Takes Stand in Pension Trial

The Fraternal Order of Police and the firefighters union contend that the administration's plan, which delayed retirement for some and abolished a fluctuating cost-of-living increase, among other changes, violates their contracts with the city.

Unions Sue City of Baltimore, Allege 'Systematic Underfunding' of Pension System

Excerpt: The city police and fire unions filed a lawsuit today against the city in federal court, alleging the mayor and finance director have for years 'breached its contract with its police officers, firefighters and retirees by systematically underfunding' the retirement system.

PepsiCo to Pay for Employee Surgeries at Johns Hopkins Hospital

The world's second-largest soda company will pay for workers and their dependents -- about 250,000 people -- to travel to Baltimore for cardiac or complex joint surgeries, such as correcting problems in a previous knee replacement. PepsiCo will also cover the deductible and coinsurance for the procedures.