Two To One To One To One (Part Two)

By: Mr. Wilson on July 3, 2009
After months -- if not years -- of simmering, Lincoln's new city employees may finally see a 1-to-1 retirement match rather than the existing 2-to-1 match. The City's generous match has been a hot topic, particularly as we try to figure out how to manage tricky budget situation after tricky budget situation. Apparently a couple local unions still have a voice in the matter, so we'll have to see how that turns out. But for now I'm glad to see this idea gaining traction.

Comments

See what your friends and neighbors have to say about this.

Gene
July 3, 2009 at 1:32PM

Considering that the city is in a hiring freeze, this is no help to our current budget situation. It should certainly help in the future for offices with non-union employees, though.

At the budget discussion a couple months ago, Rick Hoppe said that for the union employees, negotiations are based on total compensation - salary plus benefits. They’re compared to similar cities around the country, so if our 1-to-1 retirement match gives us a figure below that average, we’ll just be paying more in actual wages. I’m sure that will irk the whiners just as much.

At least it’s a popular politically.

Mr. Wilson
July 3, 2009 at 1:38PM

I don’t know the ins and outs of the total compensation discussions. If it’s true that 100% of the difference between the 2-to-1 match and 1-to-1 match must be made up in salary, might the change in fact result in *higher* costs for the City if some employees don’t currently take advantage of the match? That is, if /everybody/ would get the new (higher) salary, but only some people now take advantage of the retirement match ...

Gene
July 3, 2009 at 3:14PM

That’s an interesting question. I’m sure there are some employees that don’t take advantage of the 2-to-1 match right now, and I’d like to what the hell is wrong with those people.

Fletch
July 3, 2009 at 3:42PM

The hiring freeze we are in will not last forever.

People will still quit and retire in the coming years and will be replaced by newbies.

In 30 years, most anyone that works for the city under the 2-1 match will be long gone.

This does not help a great deal today or tomorrow, but for the long-term, this is a very good thing.

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