Beginning this pay cycle, the city will put all civil service employees in the pension plan, rather than filtering some into the less lucrative Social Security system.
The moves comes a month after a group of employees – now close to 100 – filed a lawsuit seeking rights to the pension after the city said they weren’t eligible because they didn’t pass a physical examination.
Exact costs were not available because some calculations include overtime pay and others don’t, but the change is expected to cost the city more than $1.6 million for the rest of this budget year and $2.9 million annually going forward, city spokeswoman Misty Skipper said.
On top of salary, the city pays 13.5 percent of each employee’s pay into the pension fund — more than double the 6.2 percent it pays in Social Security.
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