Council delays vote on pension raises

Richmond city government retirees will have to wait a little longer to find out whether they'll get a raise in their pensions, but it could be worth their while.

The City Council postponed last night's scheduled vote on a proposed 1 percent cost-of-living increase for retirees and discussed taking up the matter in January, after Mayor-elect Dwight Clinton Jones takes office. Jones supported a raise for retirees during the fall campaign and reiterated that position in general terms yesterday.

By delaying last night's vote, council members said they might be in a position to resurrect the 1.5 percent increase that was included in the fiscal year 2008-09 budget that was adopted this spring but was later declared invalid by Mayor L. Douglas Wilder.

Richmond has been operating since July 1 under Wilder's proposed budget, which includes no raise for the city's nearly 4,000 retirees. He has suggested a 1 percent increase as part of a potential budget compromise with the council.

City Councilman Chris A. Hilbert said he stands ready to work with Jones, adding that "it would set the tone for the new mayor if he were to recognize the legal budget" adopted by the council.

Jones said yesterday that he expects to find the city working under Wilder's budget, but he gave no specifics on what amendments he might pursue. Wilder's suggested compromise also includes $6 million in cuts to reconcile his budget with the council's decision to reduce the real estate tax rate from $1.23 to $1.20 per $100 of assessed value.

"If it's still not balanced when we get there, we'll take care of that," Jones said.

A half-dozen or so city retirees who attended last night's meeting were optimistic about the possibility of working with Jones and the council.

Rick Pleasants, spokesman for the Richmond Retired Police Officers Association, said city retirees have received a cost-of-living increase of only 0.79 percent during the past four years while being hit with a 40 percent rise in health-care premiums. A 1 percent raise would mean an additional $33 per month for someone with a $40,000 annual pension, he said.

"It is definitely not a windfall, but it's something that will help," he said.

Carol Nicely, a retired city police captain, said support for retirees is a good investment because it keeps them in the city and helps to retain current officers.

"A safe city speaks for itself," she said.

City Councilwoman Reva M. Trammell objected to delaying last night's vote. She said she worries that the economy may be worse in January, making it harder for city officials to justify the expense. Wilder had recommended using $2.2 million in funds left over from fiscal year 2006-07 to provide $1.8 million toward a 1 percent raise.

"I just pray that they get that 1 percent, 1.5 percent," Trammell said.
Contact Will Jones at (804) 649-6911 or .