FeedsBallot issue will help retirees, reduce costs
Voters in Wayne will have a chance to help out city retirees and put some money back in the municipal coffers at the same time on May 6.
That’s when they’ll vote on two proposals to switch current retirees from the City of Wayne Retirement System to the Municipal Employee Retirement System (MERS).
“It’s as close to a no-brainer as you can get,” said Robert English, assistant city manager. “We’ve not asking residents for money, we’re asking them if they want us to save money.”
The city has worked toward shifting all employee groups to the MERS system as a cost savings measure. English has headed up the efforts.
MERS is a statewide organization that handles retirement benefits for municipal workers. More than 700 municipalities throughout the state take part in it, English said.
“It does not make much fiscal sense to maintain our stand alone system if we can join up with 700 other municipalities,” English said. “You can get better rates, better interest.”
English said he already has letters of agreement from several city bargaining units to make the switch, including the firefighters’ association, dispatchers, Department of Public Works and Parks and Recreation, the general employees association, the supervisor’s association and the district court. Still outstanding are the Command Officers Association (COAM) and the Patrol Officers Association (POAM). English said he hopes to have agreements with them soon. He estimated that, if every group switches, it could save the city more than $100,000 every year.
The reason voters have to weigh in on the issue is because the retirement system is charter-based, not ordinance based. If it were an ordinance-based system, it would only require a vote from the city council.
English said the city will save staff time, too. When someone wants to retire now, he has to get involved as well as the clerk, finance director and assistant finance director. MERS handles all those details.
The change wouldn’t mean any reduction of benefits, either. The Michigan constitution guarantees that.
“Nobody’s benefits are being diminished,” English said.
The city has a mill dedicated to fund the retirement packages of city employees, but it does not entirely cover the costs. The remainder of the funds are taken each year from the general fund, according to English.
“Those numbers go up every year That’s why we’re trying to do this,” he said.
The only differences retirees would see is that they will be paid on the 18th of every month rather than the first; their payments would be electronically transmitted to their bank accounts and they would receive Cost of Living Adjustments on January 1 rather than July 1.
“It’s pretty straightforward,” English said. “There are just some procedural differences.”
It also has an advantage for current employees in that their benefits will transfer should they take another job.
English said once retirees knew they wouldn’t lose any benefits, they were all behind the plan, too.
“All the feedback I’ve had has been positive,” he said. “There has been no retiree that has spoken against MERS.”
