Rethinking Retirement (6/5/07) - WDRB 41 Louisville News

Rethinking Retirement (6/5/07)

Even though city revenues will be up by about $23 million this coming year, Louisville won't be making a lot of new public investments.

That's because most of the increase will be eaten up by the rising cost of pension and health care obligations to city retirees.

Louisville's pension costs alone are expected to go from $48-60 million this year -- and more than double that in six years if nothing changes.

So something needs to change.

We can't go back on our obligations to the people who have already retired or are near retirement. They made a deal in good faith, and we can't suddenly call for a do-over.

But the days of promising new city employees they can retire with full benefits after as few as 20 years should end immediately.

And health care plans offered in the future should also require greater employee contribution.

Since these changes would only affect new city employees, these ideas won't fix things overnight.

But change has to start somewhere. And when you find yourself trapped in a hole, the first thing you need to do is stop digging.

What's your thought? Call us at 588-2433 and let us know.

I'm Bill Lamb, and that's my Point of View.

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