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Pumped-up Pensions Squeezing Atlanta

Excerpt: In 2001 and 2005, the Atlanta City Council approved substantial increases in pension benefits for city workers -- but didn't figure out how to pay for them. Those decisions are not only hobbling city finances now, they threaten to cripple the city budget for years to come.

New Atlanta Pension Proposal in the Works

[A City Councilwoman] plans to introduce a proposal that she has worked out with the city's employee unions to solve Atlanta's unfunded pension liability of more than $1.5 billion.

Atlanta Must Cut Pension Benefits, Join Social Security, According to Report

Excerpt: The long-anticipated report was released by the City Council's Select Committee on Pensions, created last summer to look at the city's pension obligations -- its future debts to cover benefits for workers and retirees. Last year, those obligations totaled almost $1.2 billion, dwarfing other city costs. This year, after the world recession, pension costs are expected to increase because all the pension funds have lost money in the stock market and other investments. 'What we have is not sustainable,' said councilman Howard Shook, who co-chaired the committee. The report comes as the city administration is hiring outside consultants to make pension reform recommendations.

Atlanta Mayor-Elect Creates Panel to Reform Public Employee Pensions

Excerpt: Reed said during the campaign he'd consider changing the time employees could become vested from 10 years to 15. The mayor-elect has also said he'd look into whether the city could enter Social Security to reduce pension costs. Reed said Tuesday he will look seriously at those options.

Telecommuting Now Atlanta Area's Main Alternative to Driving Solo

For the first time, state data shows teleworking has surpassed all alternatives to solo driving here as a main commute, including carpooling and mass transit.

Pension Cuts Often Miss Top Executives

Excerpt: More companies are sending chills down employees' spines by freezing their pensions, but that cold front isn't necessarily hitting the executive suites. Even as some of metro Atlanta's largest companies have frozen their traditional pensions or switched to cheaper plans for most employees, several minimized the impact on their executives' hefty pensions by exempting or even boosting their supplemental retirement perks.

Why the Social Security System Is Not Like a 401(k) Plan

"Like most people, I've taken a pretty big hit in my 401(k) plan. But I don't think you can blame that on a flaw in the program, nor is there any way to regulate the risk out of such a system. If you get a stock market crash of this magnitude, any stock-based retirement plan is going to be hurt. Period. I understand the impact it has had on people close to or in retirement, but there's no solution to it. However, this is a damn fine illustration why it would have been foolish to tie Social Security benefits to the market. If SSI payments had fallen in addition to the collapse of 401(k) accounts, the pain would have been doubled for millions of people. As it is, the defined-benefit basis of Social Security at least provides a firewall in retirement."

Delta Flight Attendant Says New Pension Formula Will Cost Beneficiaries Millions

Excerpt: A Delta Air Lines flight attendant has filed a proposed class- action suit against the company, saying it changed its formula for calculating pension benefits, costing beneficiaries millions of dollars in accrued benefits that are federally protected.... The suit ... says Delta made the change in 2007 while in Chapter 11 bankruptcy. The change altered the calculation of the Social Security offset for certain participants' pension benefits. The offset typically reduces corporate pensions by a percentage of Social Security benefits received. Delta's change, the suit claims, violates an 'anti-cutback' rule under the Employee Retirement Income Security Act. It could affect tens of thousands of participants and beneficiaries in the airline's pension plan, the suit says.

Retired Delta Pilot Proposes Company's Board Stop Paying Executive Bonuses Unless It Funds Retired Pilots' Pensions

The retired pilot who filed the shareholder proposal ... noted that he is a shareholder and proposed that the board prohibit cash or stock bonus payments to management or executive officers unless there is a process to fund retirement accounts for pilots who retired before Dec. 13, 2007.

Flexibility in Workplace Still Matters to Workers

More than three in five working adults (62 percent) said that flexibility is one of the most important factors they consider when looking for a new job or deciding on an employer .... Of the 1,071 working adults polled, 42 percent said that they were willing to give up some salary to achieve more flexibility at work.