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    Office Of The Mayor

    Pensions, Healthcare & Worker's Compensation

    (3/11/2010) Q: What is the city's plan to deal with the dramatically increasing costs associated with pensions, healthcare, retiree healthcare, and workers compensation? They are rising much faster then we can keep up particularly given the deficits with the State Budget?

    A: If you review the City’s Legislative agenda the City is currently seeking State Legislation to change the Rules of Binding Arbitration where the majority of our contractual obligations as they relate to pensions and healthcare are ultimately determined. The City is also taking aggressive stances in our negotiation of contracts to reduce future burdens. In addition, the City has an active RFP process for the administration of all these funds. In the past five years the City has competitively bid Pensions, Health Care, Workers’ Compensation, Short Term Disability and Life Insurance Coverage. By bidding the administration of each service on a rotating basis the City can attract competitive bids for a reasonable period (average 3-4 years before re-bid) and give each RFP process the attention it deserves to guarantee the most competitive prices and service.

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